Creative industries under threat from no-deal hard Brexit12:20, 11th January 2018
Sadiq Khan, Mayor of London, has warned that the creative industries could lose up to £3.3bn and 27,000 jobs from a no-deal hard Brexit.
According to research by Cambridge Econometrics, commissioned by the Mayor, London stands to lose up to £1bn of growth and have 6,000 fewer jobs by 2030 if the UK leaves the EU with no deal and no transitional deal.
The capital could also struggle to retain a talented workforce: 9% of employees in the arts, entertainment and recreation sectors (18,000 jobs) were born in the European Economic Area.
The research reveals that if the UK leaves the Single Market and Customs Union in March 2019, with no transitional deal in place, London’s overall economic output (GVA) would be 2.1% lower by 2030 – the equivalent of £10.9bn – and the availability of jobs in the capital would fall by 87,000 (1.6%).
The report also points out that London’s creative institutions stand to lose out on millions of pounds of EU funding.
Although this analysis is not a forecast or a prediction of what will happen, it highlights the scale of the comparative risks associated with each scenario and potential outcome from the negotiations.
Justine Simons, deputy Mayor for Culture and Creative Industries, said: ‘The Government must do everything it can to ensure the capital remains an attractive place for creatives to put down roots. This means ensuring the capital doesn’t lose talent to other European cities, and safeguarding our deep and longstanding trade relations with the EU. It is clear that a no-deal, hard Brexit, without a transitional deal will place all this under threat.’
The EU is a key trading partner for the UK’s creative industries, with 42% of creative service exports going to the EU.
Culture and the creative industries are worth £42bn per year to London’s economy, the creative economy accounts for one in six jobs, and are the reason why four out of five tourists choose to visit the capital.