Shake-up of DCMS leaves marketing industry in limbo

Whitehall_London 2Prime Minister Rishi Sunak’s decision to “refocus” the Department for Digital, Culture, Media & Sport has, according to one industry source, “chucked a new spanner in the works” just when the marketing industry needs clarity on the future of advertising and data regulation.

The move creates four new departments: the Department for Energy Security & Net Zero; a combined Department for Business & Trade; the Department for Science, Innovation & Technology; and a “refocused” DCMS.

The main focus so far has been the establishment of the energy-security department, led by Grant Shapps, who Downing Street said has been “tasked with securing our long-term energy supply, bringing down bills and halving inflation”.

However, Downing Street has given few details of its vision for a refocused DCMS, although it has pointedly dropped the word “digital” from its title, reverting to the Department for Culture, Media & Sport in a reversal of its 2017 rebrand.

All the Government will say is that the department will “recognise the importance of these industries to our economy and build on the UK’s position as a global leader in the creative arts”.

Lucy Frazer, a minister of state in the Department for Levelling Up, Housing & Communities, succeeds Michelle Donelan as culture secretary.

Meanwhile, Donelan will become secretary of state at the new Department for Science, Innovation & Technology. Downing Street said the new department would “drive the innovation that will deliver improved public services, create new and better-paid jobs and grow the economy”.

It said that having a single department focused on turning scientific and technical innovations into practical, appliable solutions to current challenges would “help make sure the UK is the most innovative economy in the world”.

However, confusion reigns for the advertising and marketing industry, while it is also unclear where the Information Commissioner’s Office will sit. In particular, the shake-up raises questions about the future of the Data Protection & Digital Information Bill 2022-23, the data reform bill which already appears to be firmly on the back burner.

One industry source said: “Just when the industry appeared to be making progress with Michelle Donelan, up pops yet another culture secretary – the 13th since 2010 – although it is still not clear whether we fit in DCMS or the new DSIT.

“Just when we need clarity on issues such as the future of online advertising and data regulation, they chuck a new spanner in the works.”

IPA director general Paul Bainsfair was slightly more optimistic yet equally confused. He said: “The revolving door of culture ministers continues unabated. If anything, it appears to be speeding up, after just five months this time. We very much hope Frazer’s appointment as will be a passing of the baton from the hope and promise provided by Donelan during her short tenure.

“In this vein, we look forward to working with Frazer and her colleagues, and to understanding further detail on how the splitting up of the Government’s BEIS and DCMS departments into four new portfolios will affect the different areas of our business.

“So far, we understand that the Online Safety Bill will continue under the remit of Donelan in her new role of DSIT, although we are yet to find out whether this will also include the online advertising programme. With advertising playing a fundamental part in the UK’s culture and media, as well as trade (UK and international) and business, our agencies will no doubt have their feet in several of these new camps.”

ISBA director of public affairs Rob Newman commented: “We are concerned that we appear to be climbing back onboard the merry-go-round – not just in terms of ministerial jobs, but also in terms of government departments. With DCMS now shorn of digital policy, it is unclear where responsibility for some of the most pressing concerns for our sector lies.

“We hope we will swiftly have clarity from the Government as to ministers’ portfolios, given that we are immediately engaged on issues such as the UK’s post-Brexit data regime, online safety legislation, and the future of public service broadcasting.

“Advertising and marketing underpin the UK economy. It is reported that the reshuffle is intended to focus the Government on growth, but changes to the machinery of government which confuse the sectors that power that growth are not ideal.”

In stark contrast, the DMA appears to have no concerns about the shake-up. Chief executive Chris Combemale said the trade body “welcomes the creation of the Department for Science, Innovation, & Technology, dedicated to unlocking the UK’s limitless potential in digital and technology”, adding “We congratulate Donelan on her appointment to lead this new department and look forward to working together to achieve technology-led growth for the UK economy.”

He continued: “Businesses and the people who power them will be key to supercharging sustainable growth across the UK economy, so it essential that the government prioritises skills development initiatives to ensure the UK’s workforce can support future innovation and growth.”

Even so, Downing Street insists the changes will “ensure the right skills and teams are focused on the Prime Minister’s five promises: to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats”.

The civil service’s biggest union, PCS, however, has been somewhat dismissive of the shake-up, with a spokesperson saying: “Rishi Sunak should be fully focused on resolving our dispute, not rearranging the deckchairs on the Titanic.”

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