DERBYSHIRE COUNTY COUNCIL CABINET MEMBER MEETING – REGENERATION 23 September 2005 Report of the Chief Executive CREATIVE INDUSTRIES DEVELOPMENT - PROGRESS REPORT 1. Purpose of the report: To outline progress in the development of sector specific partnership support programmes across Derbyshire. 2. Information and Analysis 2.1 National Context The Department for Media Culture and Sport (DCMS) has identified the Creative Industries as a key growth sector in the UK. Latest available figures from 2001 demonstrate the sector accounting for 8.2% of Gross Value Added (GVA)1 and growth by an average of 8% per annum between 1997 and 2001. This can be compared to an average of 3% growth per annum for the whole of the UK economy. In June 2002, creative employment in the UK totalled 1.9 million jobs. Additionally UK exports by the creative industries equated to around 4.2% of all goods and services exported and grew at around 15% per annum over the period of 1997-2001. This may be compared to the export growth value of all services at 7% per annum. The value of the sectors growth and its impact on the UK economy has been recognised by central government leading to the recent appointment of James Purnell as the new Creative Industries Minister. 2.2 Regional and County Context The Office for National Statistics outline that there are 12,375 creative enterprises in the East Midlands employing a total of 79,395 people. Of this Derbyshire accounts for around 18 percent (approximately 2200 businesses). Both Derbyshire Sub Regional Strategic Partnerships support the Innovation and Creative Industries. The Derby and Derbyshire Economic Partnership Sub Regional Strategic Partnership (DDEP SSP) place the Creative Industries as a priority growth sector. The Alliance SSP also recognises the Knowledge economy and Innovation industries as growth sectors of which the creative industries form a part. 1 GVA is the calculation that in economic terms measures gross domestic product (GDP). GDP is the indicator of the amount of the economic production of a particular territory in financial terms during a specific time period. 1 2.2 Update on Specific Projects and Actions The report Making Connections: Workspace and Skills, Hubs and Clusters – developing the Creative Industries in Derbyshire was competed in October 2002. The report made a series of recommendations; including a 5 year Action Plan and the creation of a Creative Industries Development Post to take forward the development of support infrastructure and workspace for the creative industries in Derbyshire. This action plan is evolving and progress is being made against the reports recommendations resulting in a reprioritisation of the key projects as follows. The Creative Industries Development Officer post also relies on working with local partners to deliver sector based initiatives. 2.21 Shared Creative Industries Database There are elements of creative sector support available throughout the East Midlands that remain to be fully integrated across the County. To address this a Derbyshire County Council controlled database holding details of 940+ creative enterprises is now complete and data protection act compliant. All enterprises involved have given permission to receive information regarding support. This is available to support providers in the region, local authorities and relevant Officers to enable support to reach creative enterprises across the County. Additionally the database holds details of enterprises, stage of trading and number of people employed to enable a baseline for mapping the sector and more targeted support. Examples include the Design Factory which provides support to crafts and designermakers having used it to disseminate grant applications and the Derbyshire Creative Industry Network (CIN) to extend their business network across the County. 700 database respondents have also agreed to be included in future research. DCC has created the procedures for database usage which has been agreed with partners, as has the process for updating data. The methodology for the database and baseline mapping as a model of good practice has been shared with other Counties. 2.22 Business Support Programme – Focusing Creativity DCC in partnership with Derbyshire Chamber and Business Link (DCBL) have created and delivered a pilot business skills development programme for creative businesses in the High Peak district, branded as Focusing Creativity. The programme enabled delegates to find the balance between being creative and running a business. The programme has been evaluated, with an overall score of good to very good (with very good as the highest score). Three further programmes are planned: for 05 – 07 in the High Peak and Derbyshire Dales Rural Action Zone (RAZ) areas and the Alliance SSP Objective 2 areas, and in 06 – 08 across the whole DDEP sub region. DCC will also seek to extend this support across the remaining districts of the Alliance SSP sub region with an aim to provide coverage across the County. Funding for the programme is currently being sought. The Arts Council of England East Midlands has confirmed support of £11,900 to the RAZ area programme and £37,000 for delivery in the Derbyshire Alliance SSP Objective 2 area. A bid has also been accepted by DDEP for the RAZ programme subject to contractual conditions. The Alliance bid has successfully moved past the pre qualification stage, an 2 Objective 2 ERDF bid and business plan is being submitted. These two programmes combined aim to create 28 new businesses and support 75 enterprises. DCC has also worked with DCBL to submit a prequalification bid to the DDEP 06 – 08 funding round to extend Focusing Creativity across the DDEP sub region (including Derby City). The bid is for 50% revenue of the programme total (£394,000) and has been submitted through DCBL as the lead accountable partner with DCC as a joint partner in delivery. This has been accepted and the programme has been asked to move forward to the next round of bidding. This support will create 70 new businesses and offer 225 learning opportunities across the whole DDEP sub region. This support will be localised to ensure that activities are delivered at district level. The funding for the programme will include an element for project management by DCC. 2.23 Workspace development There is a requirement for creative enterprise managed workspace across the county to encourage inward investment, graduate and skilled practitioner retention. Therefore DCC is conducting research into quantifying demand for creative industry workspace and what businesses require from the space. The first phase of this research, concentrating on the requirements of enterprises featured on the creative industries database will be produced early October. Commencing in October a second phase of research will concentrate on the requirements of graduate and prestart businesses and will be conducted with support from the University Of Derby, Chesterfield College and other HE Institutions. The research will be used to engage private sector developers and potential partners looking to develop workspace. It will also be used to suggest the route forward for the public sector / potential funders to support the sectors workspace requirements. DCC is also looking into a number of sites across the county with a view for further investigation into suitability and feasibility, in line with the research findings for workspace that may be developed by DCC and partners. A paper outlining potential business and finance models and sites for workspace will be the subject of a separate report to the Cabinet Member for Regeneration. 2.24 Creative Industries Networks DCC has been working with Creative Industries Network (CIN) originally established in Derby City to extend their support across the DDEP sub region (which excludes Bolsover, Chesterfield and North East Derbyshire Districts and Boroughs) and to establish linkages with existing networks (Arts in the Peak). CIN have convened their first Derbyshire event in Wirksworth in August which attracted an estimated 100 business representatives. DCC is working with CIN to extend their coverage and has reduced the barriers for CIN engaging Derbyshire Creative enterprises, increasing its Derbyshire membership base by granting them access to the Derbyshire creative industries database. Additionally DCC has provisionally mapped the coverage of networks across the County, highlighting a gap in North Eastern Derbyshire. To address this DCC is working with Chesterfield, North East Derbyshire and Bolsover Councils, alongside a steering group of creative practitioners to support a business led creative industries network for North Eastern Derbyshire (NED Creative). A first event is to take place 3 on the 10th October in Chesterfield which will offer creative businesses a chance to network and voice their business development needs. The event will also identify key creative enterprises that may drive a more formalised network and future events in the North Eastern Derbyshire sub region. It is expected that once NED Creative is formalised, this will provide an opportunity to create linkages with CIN and enable both networks to have affiliate membership schemes. 3. Partnership Working. 3.1 Rural Action Zone Creative Industries Consortium. Since the departure of the Creative Industries Specialist Advisor for DCBL in May 05, DCC is leading a consortium of service providers to submit a joint bid to DDEP RAZ. The bid has been approved subject to contract, this will create a joined up support package for creative businesses, artists and arts festivals including Focusing Creativity. The accountable lead for the consortium will be DCBL. DCC has ensured that all elements of the consortium are joined up, strategically linked and that the bid fits with DDEP objectives. Without DCC intervention this consortium bid or project would not be delivered. 3.2 Local Partnership Working Working with local partners is key to implementing the revised action plan for the Creative Industries. To support this DCC are represented at the Derby City based Creative Industries Working Group, and lead on the North Eastern Derbyshire Creative Industries Group. Additionally DCC chair the Gateway to Growth project which signposts creative enterprises to skill development opportunities. Regular meetings are conducted with relevant officers at district level. DCC also work closely with Derby City to develop strategic links. 4. Other Considerations Crime and disorder, equal opportunity; health; environmental; human rights; financial, legal; personnel and property considerations have been taken into account in preparing this report. 5. Key Decision – No 6. OFFICER’S RECOMMENDATION: That the progress in the development of the Creative Industries support programme be noted. 7. Background papers Making Connections Workspace and Skills, Hubs and Clusters DCMS Creative Industries Sub sectors DCMS Latest figures on Creative Indsutries and GDP value to the economy NICK HODGSON Chief Executive 4