Representatives of the U.K. music industry have warned about the potential impact that the British election will have on Brexit negotiations and business in general, following a shock result that left Prime Minister Theresa May narrowly clinging onto power.
May had called the snap election in April -- when the Conservative Party was riding high in the polls -- hoping to increase her party's mandate and give her a stronger hand when negotiating Brexit with the European Union. That gamble spectacularly backfired, with the Conservatives losing 12 seats and, more importantly, relinquishing their majority in the House of Commons.
Despite the hung parliament result, the Conservatives remain the U.K.'s largest political party and May has said that she will stay on in power to lead the U.K. through Brexit talks -- due to begin in just 10 days -- although with a considerably weaker hand than she had just two months ago.
Labour leader Jeremy Corbyn -- who saw his party gain 29 seats -- called on the Prime Minister to resign, saying she should "go and make way for a government that is truly representative of this country." Following the election result, the value of the pound dropped by up to 2.5 percent before recovering some ground as May confirmed that she will form a government with the support of the Democratic Unionist Party
"The General Election result creates a political landscape that is considerably more complex," said Geoff Taylor, chief executive of labels trade body BPI. He went on to say that May's Conservatives "will be under considerable Parliamentary pressure to adopt a more nuanced position in the Brexit negotiations, which many in business will welcome."
"However, greater uncertainty over an extended period, with the possibility of a further election before the full Parliamentary term, is unlikely to be helpful," he noted, setting out a number of priorities that the incoming government needs to adopt to support the music industry and "keep growing British music exports."
They include the new administration immediately supporting the European Commission's proposals to force user generated platforms like YouTube to "pay fairly for the music they use to build their businesses," as well introducing a wave of new tax credits to boost Britain's recorded music biz and make the country a more attractive place for artists from all over the world to make music.
"The Government must make creative businesses a priority and ensure a Brexit deal that benefits creative businesses like music -- making sure that U.K .artists can tour freely in EU markets and that U.K. businesses can access the best talent," rallied Taylor.
In a statement, European Council President Donald Tusk congratulated Theresa May on her reappointment as Prime Minister and said that it was now "urgent" that they begin "negotiations on the U.K.'s withdrawal from the European Union in the best possible spirit, securing the least disruptive outcome for our citizens, businesses and countries after March 2019.” He added that the two-year timetable, "leaves us with no time to lose."
Michael Dugher, chief executive of umbrella organization UK Music, said that, "over the coming weeks there will be many discussions about the future direction the country will take" and "it is paramount that the interests of the music industry are fully considered in those conversations."
"Brexit is clearly the biggest issue facing the country -- and our industry -- and we will ensure that the interests of our members across the Music industry are protected," he added, citing pre-election pledges from all the main political parties to build on the success of the creative industries. "We will be holding their feet to the fire to ensure that they deliver on those pledges," promised Dugher.
Annabella Coldrick, chief executive, of the Music Managers Forum (MMF) echoed those words, citing manifesto commitments from both the Conservatives and Labour parties "that content creators are appropriately rewarded for the content they make available online."
"That's the MMF's priority too, and along with other creator representative bodies we will be re-doubling our lobbying efforts with the U.K. Government to tackle the lack of transparency in the digital marketplace," said Coldrick, voicing her opposition to the existing "NDA culture that denies artists, songwriters, composers and musicians not just clarity, but fair digital remuneration."
She also stressed the importance of tighter regulation of the secondary market, "restoring the connection from audience to artist, to properly reward the creative talent on whose shoulders our entire business sits."
"Today's result raises concerns about the political stability of the U.K. in the short term," reflected John Kampfner, chief executive of the Creative Industries Federation. "One thing is beyond doubt, however: Theresa May has seen that there is no clear mandate for the government to negotiate a hard Brexit."
Citing a survey of Federation members before last year's EU referendum, which found 96 percent were in favour of remaining in the EU, Kampfner said that the "general election vote now offers the opportunity to look at the issue again."
"The Federation will push for the U.K. to remain in the single market and the customs union and against undue restrictions on free movement, which we know will damage the capacity of the creative industries to deliver," he stated. "It remains vital we secure the best possible deal for the sector during what will be a turbulent period of political and constitutional change."
