S4C’s impact on the UK economy close to £200m
WELSH-language channel S4C has a near £200m impact on the UK economy, new research shows.
According to an analysis of its direct, indirect and induced effects, the Carmarthen-headquartered broadcaster had a total economic impact of £197.4m in 2019-20, according to analysis by Arad Research.
This consists of a £96.7m direct impact from its spending on goods, services and wages (including freelancers).
There was also an indirect impact of £800,000 from its anchor tenancy of the Yr Egin creative industries building in Carmarthen.
Together the direct and indirect factors induced a further £99.9m of impact from the expenditure of UK firms stimulated by the two measures.
Of its total impact, some £141.1m was felt in the Welsh economy, with £18.2m in Carmarthenshire.
During the year the channel employed on average 101 full-time equivalent staff, of which 32 were living in Carmarthenshire. It also employed 56 freelance staff.
Its expenditure generated further demand and employment which support an estimated 2,334 UK employees and freelancers, of which 2,229 were estimated as being based in Wales and 245 in Carmarthenshire.
From its next financial year, 202223, the contribution it receives from the Department for Digital, Culture Media and Sport (DCMS) will end, with its budget solely funded by the BBC licence fee. S4C is now in discussions with the DCMS over a new five-year funding deal.
In its last financial year, 2020-21, the channel received £74.5m from the licence fee and £21.85m from the DCMS. Some £15m of the DCMS contribution related to the channel being covered by section 33 of the VAT Act of 1994, so allowing it to reclaim the tax. Its reclassification impacted positively on its funding for the first time in 2019-20.
While funding from the DCMS is coming to an end, the channel will still benefit from being able to reclaim the tax. It also generated £1m last year from its own commercial activities.
S4C’s chief executive, Owen Evans, said of the economic impact research: “This is extremely important for us as the results have been included in our submission to the UK Government’s DCMS as part of a debate over S4C’s financial settlement from April 2022 onwards.
“There’s never been any doubt in my mind about the importance of S4C to the Welsh economy. The fact that S4C can have an impact on the UK economy also, as well as an impact in Wales and in Carmarthenshire in particular through our headquarters at Canolfan S4C Yr Egin, is hugely encouraging.
“The relocation from Llanishen (Cardiff ) to Yr Egin ensured that S4C was at the forefront of creating job opportunities in West Wales and I’m extremely proud that we now have offices in Caernarfon, Carmarthen and Cardiff. This shows the positive impact of S4C throughout Wales.”
He said the channel played an important role within the independent production sector in Wales.
He added: “It is vital in providing employment for staff and freelancers; generating induced expenditure in local economies; supporting the Welsh language and culture; facilitating partnerships for co-production; and helping companies access international markets and compete globally.
“S4C also plays a significant role in providing strategic direction and funding for workforce training via the independent body TAC which represents the independent Welsh TV production sector.
“Around 500 creative industries professionals (around 10% of these freelance workers) were trained via courses co-ordinated by TAC in 2020. A total of 33 courses were delivered by 15 providers during the year covering 15 areas of expertise.
“I’m extremely grateful to TAC for working closely with us and ensuring that we can offer the best possible support to production companies in Wales.”