Why the arts matter

Politicians are right to make this an election issue.

You'd expect the tabloids to belittle the government's commitment to the arts, but from the Guardian it just sounds weird. In a blog headlined "Don't vote for 'arts policy'", Jonathan Jones argues: "At these kinds of times, when the nation's future is held in the electoral balance, you realise exactly how silly and trivial the media fiction of 'the arts' actually is." He concludes his piece with the dismissive assertion that: "There are bigger things at stake than a new paint job for the National Theatre lobby."

Do the arts really amount to "the cultural comforts of the middle classes", as Jones says? Is the issue so trivial? I don't think so, and neither do the politicians.

In 2001, the then culture secretary Chris Smith wrote (PDF) that "our creative industries . . . are a real success story, and a key element in today's knowledge economy". These sectors, of course, are sustained by the "lifeblood" of what Smith called "original creativity", which in turn depends upon a healthy attitude to the arts in Westminster to fund institutions, programmes and so forth.

The costs are small, especially when set against their rewards -- the UK's major museums and galleries produce annual profits of £1.5bn; music brings in £5bn a year and theatre £2.6bn. According to Charlotte Higgins in the Guardian, when Liverpool was the European capital of culture in 2008, "£800m was generated for the local economy and 27 per cent more visitors were attracted than in previous years".

This is why the first British Inspiration Awards, scheduled to take place on 23 April in London, has the vocal endorsement of all three major political parties. "I am enormously proud of the talented people in this country who, through their creative and entrepreneurial gifts, illuminate their lives and enrich ours," said Gordon Brown, while David Cameron offered: "We should be proud of that heritage. I welcome the opportunity this event brings to celebrate our many creative successes."

In purely fiscal terms, the arts sector is a major employer and earner for the UK. It's more important than ever to insist upon its upkeep.

Yo Zushi is a contributing writer for the New Statesman. His latest album, It Never Entered My Mind, is out now on Eidola Records and is on Spotify here.

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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.