{"id":16550,"date":"2024-10-30T10:11:54","date_gmt":"2024-10-30T10:11:54","guid":{"rendered":"https:\/\/sceptical.scot\/staging\/?p=16550"},"modified":"2026-04-18T19:34:30","modified_gmt":"2026-04-18T19:34:30","slug":"seven-steps-to-save-scotlands-creative-economy","status":"publish","type":"post","link":"https:\/\/sceptical.scot\/staging\/2024\/10\/seven-steps-to-save-scotlands-creative-economy\/","title":{"rendered":"Seven steps to save Scotland’s creative economy"},"content":{"rendered":"\n

Who said: \u201ccutting arts funding is a false economy?\u201d No, it wasn\u2019t Lisa Nandy or Rachel Reeves. And it certainly wasn\u2019t Angus Robertson or Shona Robison.<\/strong><\/p>\n

It was George Osborne, who told a friend of mine exactly that at Arts Council England in 2015. The Tory Chancellor of the Exchequer hardly threw money at the arts, but at least he recognised its potential return on investment<\/a> (ROI).<\/p>\n

\u00a0<\/strong>As I argued previously<\/a>, Scotland\u2019s creative industries have been neglected since 2021\u2019s election, and the effects are evident. The Scottish Government pledged to inject an additional \u00a3100m annually<\/a> into culture by 2028. So far a hollow promise.<\/p>\n

A bleak future<\/h1>\n

What would happen if this pledge remains unfulfilled? That future looks bleak. The creative economy, attacked from all sides<\/a> in recent years, is stagnant. Without investment it would contract. Job losses would be particularly severe in fragile areas such as grassroots music venues, which not only nurture talent but also support local economies through hospitality and tourism. The Ironworks in Inverness was a victim of property development decisions. Broadcast in Glasgow closed recently and the CCA<\/a> may close due to \u201csignificant financial uncertainty<\/a>\u201d. The future is uncertain for Summerhall<\/a> and the NTIA<\/a> warns of night club extinction by 2030<\/a>.<\/p>\n

Cultural tourism would be undermined. Music tourism alone was worth well over half a billion to Scotland\u2019s economy<\/a> in 2022. Culture is indeed a major tourism driver<\/a>. But Scotland\u2019s globally recognised festivals, live music scene, heritage and crafts require ongoing investment to maintain competitiveness over rival destinations. Without it, we attract fewer international tourists and our global brand is diminished, impacting everything from trade to talent.<\/p>\n

Missed opportunities for economic diversification could slow growth in high-potential areas like digital creativity and international exports. Without investment in innovative sectors, Scotland could fall behind competitors. Countries like Ireland and Denmark are investing heavily in their creative industries to drive post-COVID recovery. We failed to attract Game Of Thrones<\/a> a decade ago; let\u2019s not miss out on even more opportunities.<\/p>\n

A bright alternative<\/h1>\n

How do we stop Scotland lagging behind? I propose mission-oriented, strategic investment in the creative industries of that long-promised \u00a3100m.<\/p>\n

Scotland\u2019s creative sector provides significant economic value, contributing \u00a35bn annually to GDP, while supporting over 70,000 jobs<\/a> directly. Yet, this only scratches the surface of its potential when evaluated through a triple bottom line approach: economic, social and environmental impact.<\/p>\n

Economic contributions can be\u00a0 quantified \u2014 through growth in cultural tourism, IP generation, exports and employment \u2014 but culture isn\u2019t just an economic asset; it\u2019s a medium for improving wellbeing, social cohesion and making environmental progress. Culture brings communities together, and creates a sense of belonging. It can also help achieve Scotland\u2019s net-zero goals<\/a>, positioning the country as a sustainable cultural innovation leader.<\/p>\n

Strategic investment, not subsidy<\/h1>\n

The Scottish Government needs to focus on initiatives with clear outcomes for economic recovery, innovation and inclusion. A \u00a3100m investment in Scotland\u2019s creative industries could yield a five-fold return. Arts Council of England research indicates that \u00a31 invested in the arts yields \u00a35 of tax revenue<\/a>, suggesting an immediate impact of up to \u00a3500m within the first year. This is driven by exports, job creation and increased local spending around events and creative hubs.<\/p>\n

Over the next five years, long-tail benefits of this initial \u00a3100m investment could include the preservation and growth of grassroots venues, job creation, IP exploitation and expansion of cultural tourism, with long-term asset yields and multiplier effects potentially contributing an additional \u00a32.5bn. Social and environmental impact would yield significant cost savings too, although they are more difficult to quantify.<\/p>\n

With budget announcements looming, now is the time to be bold and live up to that \u00a3100m promise. Here\u2019s how it could be productively invested:<\/p>\n

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1 Grassroots Music Venues (GMVs) & Creative Hubs (\u00a320m):<\/strong><\/h4>\n

Grassroots music venues are keystones in Scotland\u2019s music industry, nurturing new talent and sustaining local economies. Yet, with two venues closing per week<\/a> across the UK, this sector is in crisis. A \u00a320m investment can stabilise key venues, safeguard and create jobs and establish regional creative hubs to encourage cross-sectoral collaboration and the growth of creative SMEs.<\/p>\n

Grassroots venues directly contribute to music tourism. In our 2018 music tourism research report<\/a> for Scottish Enterprise, we found that GMVs contributed \u00a359m of Glasgow\u2019s \u00a3160m total music tourism revenue. They also form essential cultural infrastructure \u2014 supporting clusters of jobs in\u00a0 the hospitality, retail, and travel sectors.<\/p>\n

Investment in GMVs and creative hubs stimulates growth and ensures Scotland\u2019s cultural heritage remains intact, attracting and retaining young people to live, study and work\u00a0 here, while creating new opportunities for artists to thrive. Universities use the night time economy to attract foreign students<\/a>. Foreign students contribute over \u00a3700m to the Scottish economy each year,<\/u> \u00a3400m of which is off-campus spending<\/a>, much of\u00a0 it on cultural activities. Reduced cultural activity risks Scottish university admissions losing out to other nations.<\/p>\n

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Creative hubs are fiscal furnaces. The Stove Network in Dumfries<\/a> is a notable example of how creative hubs can fuel local economic regeneration. As a community-led arts organisation, The Stove has successfully ignited activity in Dumfries\u2019 town centre through gigs, events, projects and community engagement.<\/figcaption><\/figure>\n

\u00a0<\/h4>\n

2 Cultural Tourism Development (\u00a315m):<\/strong><\/h4>\n

Cultural tourism has consistently proven\u00a0 to yield high ROI. By building on the success of festivals like the Edinburgh International Festival, Celtic Connections, TRNSMT and Edinburgh Festival Fringe, investing in regional events and leveraging digital tools, Scotland can attract more cultural tourists and expand year-round tourism offerings.<\/p>\n

Targeting areas like live music, heritage experiences and nature-based tourism (especially in the Highlands and Islands) will boost revenue streams and can be aligned with the government\u2019s environmental goals. This could add hundreds of millions to the economy while enhancing Scotland\u2019s global cultural profile.<\/p>\n

3 Creative Tech & Digital Innovation (\u00a315m):<\/strong><\/h4>\n

Scotland is well-positioned to lead in creative technology. By supporting digital creatives and investing in VR, AR, interactive storytelling and immersive experiences, the government can future-proof the sector. Platforms like XpoNorth Digital<\/a> and<\/u> Creative Tech Scotland<\/a> can scale with additional investment.<\/p>\n

XpoNorth has been particularly successful in promoting digital innovation and supporting micro and small businesses within the creative industries, which are key drivers of the Highlands and Islands’ region economy. The programme has acted as a hub for creative collaboration, skills development and access to global markets. Initiatives like Creative Tech Scotland and the creative cities networks, bring together creatives and technologists and champion data-driven innovation.<\/p>\n

Adopting technologies like blockchain<\/a> can enhance resilience and create new revenue models in the creative economy. Encouraging creative businesses\u2019 digital development will reduce costs, expand global reach and contribute to environmental responsibility.<\/p>\n

4 Creative Industry Training & Skills Development (\u00a310m):<\/strong><\/h4>\n

The future of the creative industries lies in digital upskilling, green skills, and entrepreneurial training for Scotland\u2019s workforce. Creating a culture of creativity requires strong leadership and the nurturing of communities. Allocating \u00a310m to programmes that provide training in digital innovation and entrepreneurship will develop a highly skilled, adaptable workforce.<\/p>\n

This can be done through partnerships with Skills Development Scotland and local educational bodies, especially in underserved areas like the South of Scotland. Developing skills that foster creativity and tech innovation will secure Scotland\u2019s position in Europe\u2019s creative economy.<\/p>\n

5 Cross-Sector Collaborations (\u00a310m):<\/strong><\/h4>\n

Scotland\u2019s creative industries have a high multiplier effect, particularly when they intersect with other sectors like health and technology. Investing in creative partnerships with NHS Scotland and mental health organisations could yield both economic returns and improve the wellbeing of communities.<\/p>\n

For example, arts programmes that support mental health in rural areas can reduce public health costs, while also generating revenue for local creative practitioners. This investment aligns with inclusive growth and the wellbeing economy framework Scotland is pursuing.<\/p>\n

6 Freelancer & Micro-Business Support (\u00a310m):<\/strong><\/h4>\n

Freelancers and micro-businesses are the lifeblood of the creative economy but are often the most vulnerable. A \u00a310m support fund, including micro-loans, business grants and affordable workspaces can help stabilise this critical talent base.<\/p>\n

Freelancers were disproportionately affected by the pandemic; many still struggle with financial insecurity. Supporting their development through policies that reflect fair work principles will not only boost productivity but will also help retain Scotland\u2019s creative talent.<\/p>\n

7 Creative Scotland Stabilisation (\u00a320m):<\/strong><\/h4>\n

Multi-year funding delays have caused uncertainty across Scotland\u2019s cultural organisations. By allocating \u00a320m to augment and stabilise existing funding, Creative Scotland can make the funding announcements now. This will help arts organisations, cultural institutions and sector development organisations plan long-term, take creative risks and innovate.<\/p>\n

Stabilising Creative Scotland\u2019s budget will also provide the certainty needed for cultural bodies to create ambitious projects that further Scotland\u2019s international cultural reputation. This will stimulate job creation, increase Scotland\u2019s exports and enrich the domestic arts scene.<\/p>\n

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Complementary initiatives<\/h1>\n

Strategic investment alone isn\u2019t enough. Money should be complemented with free and low-cost initiatives that create an enabling environment for creative growth. These include:<\/p>\n