The fall in student applications could devastate the UK’s creative economy

The changes to student finance, the promotion of STEM subjects through the EBacc and visa issues for international students are all discouraging potential students from realising their talents by following a creative arts degree.

It is now clear that the hoped for "bounce back" in university applications has not happened in creative arts courses, which could lead to a further drop in enrolments in 2013. This is nothing short of a tragedy because the changes to student finance and the introduction of full-fee loans is discouraging potential students from realising their talents by following a creative arts degree. 

The reduction is more than a personal loss; it will be a loss to the UK’s creative industries and arts sector. More, it is a loss to other sectors which employ arts graduates because they are creative, enterprising, critical and independent.

Just a few years ago, many of us thought the longstanding links between UK creative arts education and creative industries and the strengths of this country’s creative sector had finally been recognised. However, either by accident or design, it feels from my perspective as the Vice-Chancellor of the University for the Creative Arts (UCA), that memories are short and it is once again essential to make our case to government and indeed to prospective students.

In itself, the changes to student finance would be challenge enough, but when combined with that of international recruitment caused by real and perceived visa issues, and the potential introduction of the EBacc that promotes the importance of STEM subjects at the expense of the creative arts, universities like mine are potentially feeling the breeze from an impending perfect storm.

It is vital that we reaffirm the links between our form of education and the strengths of the UK’s creative economy. We need to make it clear that the success of this sector is intimately related to the 175-year history of art and design education in this country. It needs to be recognised that there is no incidental relationship between what happens in creative arts institutions each and every day and the international strength and recognition the UK has across art, design and media – movingly and repeatedly recognised in the cultural aspects of our incredible Olympic Games this summer.

Each and every day we teach students how to be creative and enterprising, by asking them to produce work for which there is no prescription, by requiring them to work individually and collectively in an environment of studios, workshops, galleries and libraries, supported by project briefs, lectures, seminars, crits and exhibitions. Most importantly, students engage with staff – who are themselves working within the arts sector and the creative industries – and the student is formed by a rich diet of industry led collaborations, projects and competitions.

While the content and outcomes have changed hugely, the core challenging experience of the environment and its real engagement with industry and the world beyond the campus has been remarkably stable for more than 100 years – and it works.

So, it is frustrating to be required to make the case repeatedly that what government wants in terms of real engagement between universities and industry is happening within creative arts institutions and has been for more than a century – there is a model of great practice that should be recognised rather than left to suffer from uncoordinated policy initiatives from different government departments.

The recent announcement that creative arts colleges at Norwich, Bournemouth and Falmouth are to become universities is great, well deserved and long awaited – but this is just window dressing if the real threats facing creative arts higher education are not addressed.

So, what needs to happen? Schools need to be judged on the quality of their creative arts provision, providing this formative experience for every child and not only those from families who can afford to buy it after school. The government then needs to make it clear to prospective international students that they are welcome and integral to the university experience of home students who need to understand other cultures and develop international ambitions. And finally, more needs to be done to protect small specialist institutions across the disciplinary spectrum who simply may not have the resources and flexibility to withstand the current perfect storm.

At UCA we recently heard that yet another graduate from our BA in Animation had been nominated for an Academy Award – Chris Butler for ParaNorman – and if he wins he will be the fifth former student to win an Oscar. The tragedy is that we are just about to undermine this possibility for the creative stars of the future.

Simon Ofield-Kerr is Vice-Chancellor of the University for the Creative Arts (UCA)

A still from "ParaNorman" by Chris Butler, a UCA alumnus, which has been nominated for an Oscar.
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What is the EU customs union and will Brexit make us leave?

International trade secretary Liam Fox's job makes more sense if we leave the customs union. 

Brexiteers and Remoaners alike have spent the winter months talking of leaving the "customs union", and how this should be weighed up against the benefits of controlling immigration. But what does it actually mean, and how is it different from the EU single market?

Imagine a medieval town, with a busy marketplace where traders are buying and selling wares. Now imagine that the town is also protected by a city wall, with guards ready to slap charges on any outside traders who want to come in. That's how the customs union works.  

In essence, a customs union is an agreement between countries not to impose tariffs on imports from within the club, and at the same time impose common tariffs on goods coming in from outsiders. In other words, the countries decide to trade collectively with each other, and bargain collectively with everyone else. 

The EU isn't the only customs union, or even the first in Europe. In the 19th century, German-speaking states organised the Zollverein, or German Customs Union, which in turn paved the way for the unification of Germany. Other customs unions today include the Eurasian Economic Union of central Asian states and Russia. The EU also has a customs union with Turkey.

What is special about the EU customs union is the level of co-operation, with member states sharing commercial policies, and the size. So how would leaving it affect the UK post-Brexit?

The EU customs union in practice

The EU, acting on behalf of the UK and other member states, has negotiated trade deals with countries around the world which take years to complete. The EU is still mired in talks to try to pull off the controversial Transatlantic Trade and Investment Partnership (TTIP) with the US, and a similar EU-Japan trade deal. These two deals alone would cover a third of all EU trade.

The point of these deals is to make it easier for the EU's exporters to sell abroad, keep imports relatively cheap and at the same time protect the member states' own businesses and consumers as much as possible. 

The rules of the customs union require member states to let the EU negotiate on their behalf, rather than trying to cut their own deals. In theory, if the UK walks away from the customs union, we walk away from all these trade deals, but we also get a chance to strike our own. 

What are the UK's options?

The UK could perhaps come to an agreement with the EU where it continues to remain inside the customs union. But some analysts believe that door has already shut. 

One of Theresa May’s first acts as Prime Minister was to appoint Liam Fox, the Brexiteer, as the secretary of state for international trade. Why would she appoint him, so the logic goes, if there were no international trade deals to talk about? And Fox can only do this if the UK is outside the customs union. 

(Conversely, former Lib Dem leader Nick Clegg argues May will realise the customs union is too valuable and Fox will be gone within two years).

Fox has himself said the UK should leave the customs union but later seemed to backtrack, saying it is "important to have continuity in trade".

If the UK does leave the customs union, it will have the freedom to negotiate, but will it fare better or worse than the EU bloc?

On the one hand, the UK, as a single voice, can make speedy decisions, whereas the EU has a lengthy consultative process (the Belgian region of Wallonia recently blocked the entire EU-Canada trade deal). Incoming US President Donald Trump has already said he will try to come to a deal quickly

On the other, the UK economy is far smaller, and trade negotiators may discover they have far less leverage acting alone. 

Unintended consequences

There is also the question of the UK’s membership of the World Trade Organisation, which is currently governed by its membership of the customs union. According to the Institute for Government: “Many countries will want to be clear about the UK’s membership of the WTO before they open negotiations.”

And then there is the question of policing trade outside of the customs union. For example, if it was significantly cheaper to import goods from China into Ireland, a customs union member, than Northern Ireland, a smuggling network might emerge.

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.