Investing in creativity: A ‘smart’ solution for local regeneration

At the heart of my constituency stands Leigh Spinners Mill, a Grade II listed building that once symbolised industrial heritage. Today, thanks to the dedication of local volunteers and creative communities, it has been transformed into a thriving centre for arts, enterprise and community life.

Home to artists’ studios, community groups and creative businesses, the mill is a testament to how creativity can breathe new life into historic spaces and into towns across the UK, demonstrating that regeneration is not just about bricks and mortar, but about people, purpose and place.

Talent is not the issue

Across the UK, cultural investment has transformed towns, particularly outside metropolitan areas. Including the support structures that help creative people thrive – from local arts programmes to collaborative spaces and skills development, projects such as Turner Contemporary in Margate, V&A Dundee and The Hepworth Wakefield stand as flagship examples.

According to Erskine Analysis, Turner Contemporary generated over £70m for the local economy; V&A Dundee delivered £304m in value to Scotland in its first five years, and The Hepworth Wakefield has returned £9.43 for every £1 of council revenue investment. Yet, for every flagship project, there are hundreds of grassroots creatives in the background struggling to survive.

At a roundtable I hosted at Spinners Mill, local artists spoke candidly about the challenges they face, including insecure studio space, poor pay and limited routes to market. What came through most clearly is that talent is not the issue. If we want the arts to regenerate our communities, we must invest in the people behind it – the artists, makers and creatives who bring places to life.

How can we do it?

It is time to look beyond the public purse to offer a fair and future-facing solution. There are two big barriers to growth in the arts and culture sector. First is the lack of sustained, flexible funding targeted at grassroots creatives and artists and local infrastructure and, second, the over-reliance on public money that just is not available.

But there is a solution – the Smart Fund – already adopted in 45 countries and backed by the Culture, Media and Sport Select Committee. The scheme operates by applying a small levy (1–3%) on the sale of digital devices that copy, save and share any creative works, such as artworks, books, photographs or videos. This includes personal backup copies of photos, e-books, TV series or films for shared or future use – private copying in other words and uses that represent lost revenue for those creators.

The levy amount is pooled and collectively distributed to remunerate creators across a range of cultural and creative repertoires, reimbursing them for the private copying of their work.

The huge positive of the Smart Fund approach

Not only would UK creators finally get paid what they are due because of private copying, but the levy would generate two revenue streams. The majority would go directly to creators – helping them to build sustainable careers – while a portion would go into a collective funding pot to support new arts and culture initiatives.

In the 45 countries that already impose a private copying levy on digital devices, this pot of additional money is a vital source of arts funding that sits directly alongside national funding. In the UK context, the Smart Fund would be an additional revenue source to Arts Council England or DCMS funding.  

A proven UK-ready model

Independent modelling shows a UK Smart Fund could generate up to £300m a year – the majority of which would be paid to individual creators, with £25 – £45m ringfenced for cultural investment in towns and regions that need it most – such as coastal communities and areas facing economic decline.

It would operate independently of the Treasury, requiring no new taxes or public spending. International evidence, including from Spain, indicates such a levy does not lead to increased consumer prices. In France, a similar scheme raises €300m a year, €70m of which supports over 12,000 cultural projects annually.

In the UK, the Smart Fund could support government’s ambition for place-based regeneration, funding locally-run arts projects, artist studios and microbusinesses in towns with rich but under-supported cultural talent.

A need for bold, joined-up action

The Smart Fund is not just about fairness for creators in the digital economy, but about creating the conditions for long-term, community-led regeneration through culture. To achieve this, we must work with artists and communities to ensure culture is central to local growth strategies in towns like Leigh and Atherton.

I remain firmly committed to working in partnership with the government and engaging with ministers across departments to champion cross-sector solutions that fortify our creative economy. Ahead of the Autumn Budget, it is more important than ever to get this right. 

I welcome the government’s recognition of the challenges facing the entire sector, but we must go further. To truly unleash the potential of our creative talent, we need bold, joined-up action that empowers artists, makers, and cultural entrepreneurs in every corner of the country to thrive.