UK Bodies Urge New Cabinet to Review Channel 4 Privatisation and to Champion the Advertising Industry
With Liz Truss stepping up as the new Prime Minister of the UK and Northern Ireland, there have been a raft of new appointments to key political roles. With Michelle Donelan MP named MP as Secretary of State for Digital, Culture, Media and Sport, and Jacob Rees-Mogg MP as Secretary of State for Business, Energy and Industrial Strategy, industry bodies are keen to make sure that the advertising, marketing and media sectors are top of their agendas.
Both the Insititute of Practitioners in Advertising and the Advertising Association urged the incoming cabinet members to take an active role in the industry and flagged up issues such as the planned privatisation of Channel 4, HFSS regulation and data privacy laws as priorities.
They also underlined the importance of a stable business environment and the contribution the industry makes to the British economy as a driver of innovation and competition - not to mention the vital role communications can play in helping people navigate the current tough economic climate.
Sue Eustace, Director of Public Affairs, Advertising Association said, on the appointment of Michelle Donelan MP as Secretary of State for Digital, Culture, Media and Sport:
“We welcome the appointment of Michelle Donelan MP as Culture Secretary and look forward to working closely with her and the team to ensure that the advertising and marketing industry continues in a position of strength to deliver economic and social benefits to the other creative industries and to the UK.
"The new Culture Secretary has many issues in her intray. We ask that she:
- moves ahead with the Second Reading of the Data Protection Bill as soon as possible to promote data-driven innovation, to reduce business burdens and make the rules more practical;
- re-examines the proposal to privatise Channel 4 as the industry is concerned about the implications for the broadcasting ecology and competition in the advertising marketplace;
- reviews the Department’s progress on the Online Advertising Programme, she will hear the calls from industry for a more targeted approach to shaping the future landscape for online advertising. It is vital that the Government does not press ahead with regulatory interventions without taking full account of the paramount importance of the gold-standard ASA self-regulatory system and what it already delivers for businesses and the public;
- that she will be firm in questioning and challenging new regulatory interventions on advertising, as has recently happened with HFSS food and drink advertising, especially where comprehensive advertising rules are already in place. There is scant evidence that advertising bans are the silver bullet solutions that governments hope for, and there will be consequences for the media, sporting and cultural industries which depend on advertising revenue to thrive.
"Investing in advertising and marketing is a vital tool of business, driving competition, innovation and economic growth, with £1 spent on advertising delivering £6 to GDP. It funds the creative industries and the media, delivering consumer choice and supporting skills and jobs across the UK.
"We have the world’s most advanced digital advertising marketplace, and a £11.7bn advertising and marketing export industry – all of which make UK advertising a draw for talent across the world. This is matched by our credentials: the UK has won more Cannes LIONS awards than any other European country since 2005 – eclipsing nearly 1,700.”
On the appointment of Jacob Rees-Mogg MP as Secretary of State for Business, Energy and Industrial Strategy, Eustace added:
“We welcome the new Business Secretary Jacob Rees-Mogg MP and look forward to working with BEIS on an agenda that champions business needs to drive growth. Advertising is a key engine of the economy and job creation, with every £1 spent on advertising providing a return of £6 to GDP. Our industry drives competition, innovation and helps to keep costs down for consumers – all essential tools as we prepare to weather the cost-of-living crisis together.”
IPA Director General Paul Bainsfair had the following to say on Michelle Donelan’s appointment: “I would like to congratulate Michelle Donelan on being appointed Secretary of State for Digital, Culture, Media and Sport, along with the new wider, DCMS team.
“This is our eleventh Culture Secretary in ten years and our industry needs the stability that a long-term holder of the office can provide. Michelle Donelan will take up their new role with several pressing issues to contend with, including: the planned privatisation of Channel 4, impending HFSS advertising legislation, the Online Harms Bill, the Online Advertising Programme and the Gambling Review White Paper, to name some examples. It is vital that she is willing to work with our industry to find solutions that will benefit the economy and wider society.
"We hope that she will take an active and positive interest in the advertising industry, recognising our importance to UK jobs, culture, and the economy. As the cost of living crisis continues, the new Secretary of State should take note of the great value that we can provide as an employer, a job creator, an exporter and as a partner for the Government. Now is the time to work together, and we will be reaching out in the coming weeks to request a meeting with her.”
