Third Report - Impact of COVID-19 on DCMS sectors: First Report

The government response is a section reference and does not address the substance of the committee's observation.

The government refers to Sport England's existing "Join the Movement" campaign for physical activity and notes that Sport England’s new strategy will focus on tackling inequalities and supporting those most affected, implying existing and planned work rather than new commitments for advertisements or a specific DCMS fund.

The government states that indoor leisure centres reopened by late July and announced a specific income guarantee scheme to reimburse local councils 75 pence in the pound for lost income, including from leisure centres they own and operate, with ongoing conversations for outsourced services.

The government highlights the ongoing OpenActive programme, run by Sport England since 2016, which already focuses on data collection to make physical activity opportunities accessible, indicating existing efforts address the recommendation without committing to new resources.

The government acknowledges the challenges faced by sports organisations due to spectator restrictions and lists various existing support schemes and new initiatives like the Job Retention Bonus and Kickstart Scheme. However, it does not commit to extending the specific financial assistance mechanisms like the Coronavirus Job Retention Scheme or VAT and PAYE deferral period beyond their cut-off dates, as recommended.

The government notes salary caps have been introduced in EFL One and Two and is in discussions for the Championship. It commits to a fan-led review of football governance, while reiterating that financial stability is primarily for the Premier League and EFL to consider.

The government notes that salary caps were introduced for English Football Leagues One and Two and discussions are ongoing for the Championship. It committed to a fan-led review of football governance, which will consider the Owners’ and Directors’ Test, but stated that the financial stability of clubs is for the Premier League and English Football League to consider, thereby not fully addressing parachute payments or DCMS-led international engagement on salary caps.

The government announced a joint review of the Code for Sports Governance, which will examine areas including equality, diversity, and inclusion on boards, but did not commit to adding specific BAME targets. The response did not address the recommendation regarding homophobia in football or the pursuit of related legislation.

The government recognises the negative impact of the pandemic on women's sport and states its commitment to raising the profile and encouraging commercial investment. It mentions a ministerial meeting with sports bodies and Women in Sport, and a general commitment to working closely with the sector, but does not outline specific plans or policies for future support or to ensure men’s elite sports are not prioritised.

The government fully recognises the importance of the issue and has the Intellectual Property Office supporting an independent research project to investigate how music creators earn money from streaming, with a report due in Summer 2021.

The government announced a £1.57 billion support package for cultural and arts institutions, committed to supporting freelancers, allowed indoor performances with social distancing, and is actively exploring technological solutions to enable the safe return of fuller audiences.

The government rejected further extensions or changes to the CJRS, stating it would close in October. It announced a new Job Support Scheme and an extension to the Self-Employment Income Support Scheme as part of the Winter Economy Plan, but these were not specifically tailored for the creative industries or designed to cover previously excluded self-employed people as recommended.

The government responded by detailing the swift allocation of Culture Recovery Fund money to various sub-sectors, including grassroots music venues and independent cinemas, and stated its commitment to ensure fair distribution that protects smaller organisations and local cultural venues.

The government published the Culture Recovery Fund criteria and application process in early August and began allocating funds, with significant allocations announced by October 2nd, demonstrating it met the deadlines. It confirmed the fund covers various sub-sectors and aims to protect smaller organisations and venues.

The government extended the temporary VAT cut for tourism and hospitality until March 2021 (shorter than recommended) and stated that other tax reliefs are under review. It highlighted existing reforms to planning regulations, including the 'agent of change' principle and changes to the Use Classes Order, but did not address the recommendation for a system to save ‘Assets of Cultural Value’.

The government details how Arts Council England has already allocated £50 million to non-National Portfolio organisations and is setting criteria to ensure funding reaches diverse cultural sectors, including specific guidance requiring applicants to demonstrate improvements in diversity of workforce, governance, audiences, and participants.

The government acknowledged the importance of clarity for Stage 5 reopening but stated that further reopening depends on the public health context, without providing dates. They are instead convening a steering group to develop an action plan to enable fuller audiences as soon as possible.

The government is actively working with performing arts and sports sectors, developing pilot events and using DCMS coordination to ensure learning is shared between sectors on technological solutions for mass gatherings.

The government announced a temporary £500 million Film and TV Production Restart Scheme to compensate for COVID-19 related delays or abandonment, partially addressing the call for an emergency fund for some cultural industries but not covering all sectors or a long-term reinsurance scheme.

The government stated that risk assessments for travel arrangements are conducted by the Joint Biosecurity Centre, and officials from DFT and Home Office discuss policies with the tourism industry through working groups and pre-announcement notification lists for key stakeholders. This indicates they are already communicating as requested.

The government acknowledges the risk of museum insolvencies and the potential loss of collections, stating it is 'looking at legislative, and non-legislative, options' to prevent their dispersal. This indicates consideration of the issue but does not commit to introducing the specific temporary legislative change recommended.

The government effectively rejected revisiting the terms of the furlough scheme, stating there would be no further extensions or changes and that it would close. While noting flexible furloughing was introduced and a new Job Support Scheme, it did not commit to reviewing existing measures specifically for seasonal workers in tourism as recommended.

The government partially accepted, outlining existing measures like VAT cuts, business rates relief, and domestic campaigns to extend the holiday season. For the Tourism Data Hub, it committed to implementation and is actively seeking funding and support.

The government agreed with the recommendation and launched a £10 million "Enjoy Summer Safely" domestic campaign in July, followed by VisitEngland's "Escape the Everyday" campaign in mid-September to boost autumn and winter tourism.

The government's response outlines existing social tariffs, industry commitments, and Ofcom initiatives to support vulnerable consumers with connectivity and affordability, but it does not address the recommendation for adequate resource from HM Treasury for DCMS's work on digital exclusion.

The government commends efforts to provide online content but does not commit to developing a data voucher scheme. Instead, it highlights existing social tariffs, new low-cost broadband services from providers, and past industry agreements on data access, while noting Ofcom is conducting research on affordability issues to inform future interventions.

The government highlights existing social tariffs, industry measures during COVID-19, and Ofcom's guidance to support vulnerable consumers. It states Ofcom is undertaking research on affordability and will publish a review to inform future interventions, deferring specific action on data gifting, wi-fi sharing, or tackling the pay-as-you-go poverty premium.

The government rejects the criticism of being too slow and lacking understanding, highlighting the 'unprecedented level of support' provided through various schemes like the Job Retention Scheme, Culture Recovery Fund, and Emergency Sport Funding. It also states that DCMS has enhanced its data collection during the pandemic to better inform decisions and will continue to engage across all sectors.

The government states that its working groups are already diverse and that government departments already undertake analysis of impacts to fulfil the Public Sector Equality Duty, and consider equality impact when making decisions.

The government did not commit to forming a Creators Council, stating it already engages with the sector through existing mechanisms like the Creative Industries Council. It would require a clear steer and robust evidence from the sector to demonstrate the need for such an additional group.