Budget 2010 - what it means for design

Designers don’t do politics...do they? Well it seems they do now, if 90 minutes’ lively Facebook discussion on the new government’s emergency Budget is any guide.

We invited all-comers to talk through the Budget’s potential impact on design with Design Council Chief Design Officer Mat Hunter, Deputy Chief Executive David Godber and Policy Director Christopher Exeter. Chancellor George Osborne’s debut has awakened some familiar concerns, from designer-client relations to the complexity of winning public sector business. But it’s also focused minds on emerging opportunities. If you missed the forum, don’t worry. Here’s a summary – and feel free to Have Your Say at the end.

Budget briefcaseIs now a good time to be starting a design business?

Innovation thrives in adversity and the Chancellor has made being in business a more attractive prospect with a 12 month National Insurance holiday for the first ten employees of new start-ups outside the south east. ‘Recessions are always the best time to start a new business,’ enthused Jon Darke, whose web design agency focusing on start-ups has ‘never been busier’, he said.

Pippa Crawford, who runs Designer Breakfasts, urged designers to ‘get involved with start-ups and small businesses. You need to develop an entrepreneurial mindset if you want to make money.’ Gisele Raulik-Murphy agreed, but added: ‘Designers are not always keen on engaging with first-time design buyers. What’s missing there? Patience? Interest? Time? Vision?’ Ultimately, said Crawford, ‘it might be necessity that brings designers and SMEs together’.

The design economy

In Yorkshire at least, the design economy is buzzing, certainly as far as Lorraine Wood is concerned, and Mike Dowson pointed to product design projects in the north east demonstrating design as a low cost, low risk way to innovate. Meanwhile, Dean Johnson anticpated one of the ‘busiest Christmas sales periods for years’ in the run-up to January’s VAT increase.

But Roger Proctor cautioned that the immediate future looked bleak for communications designers faced with a freeze on public sector marketing and advertising spend. ‘I have seen four recessions – my own business started in a recession. There are opportunities, but we should not shy away from the problems,’ said Proctor.

Convincing clients

For Anne Pordes Bowers, the key problem for all design businesses is convincing clients, especially in the traditionally ‘risk-averse’ public sector, to buy design at all. And then there are the clients drawn to the idea of doing design and marketing themselves, or expecting design for free, said Lorraine Wood. Gabriel Patrocinio believed it was time to ‘find new ways to show the public sector that design has always been part of the solution – and that it should be so again’.

Design education

There’s plenty of value to demonstrate in public services and sustainable innovation, said Simon O’Rafferty, but he wondered whether the industry was properly equipped to do it. ‘Design education isn’t pro-active enough and design policy isn’t refined enough to prepare designers for these new contexts.’

Design Council Head of Skills Lesley Morris responded: ‘Some of the issues in this debate are not in the curriculum. How do we give students at least some experience of promoting design, selling their services, understanding clients’ businesses and managing projects, for example?’ And Philippa Grantham seemed to explore similar territory: ‘Designers need to think like business people and not just designers. It’s not a hobby! We need to get efficient, better at communicating and using current technology to its full potential.’

Public sector

Pressure on public finances means pressure to produce more for less – a good opportunity for service design, said David Godber, as it streamlines and simplifies service experiences, making them work better. Mat Hunter added, ‘There are huge, systemic challenges that design needs to be part of. It can break down knotty challenges into clear and practical projects. Human scale solutions, rapidly executed’. All the more reason, said Godber, to help the public sector understand how to procure design effectively.

But although design is ‘an important intervention to help solve many socio-economic problems’, said Christopher Exeter, appetite for it can be prey to economic tides and trends in management thinking. Nevertheless, he insisted that ‘design and innovation aren’t luxuries but part of the infrastructure.’ For Shantha Shavanandhan, focusing on the consumer experience is good sense for business, as well as good design, because ‘cost efficiencies just fall out’. Exeter agreed: ‘The simplest innovations are the best. Focusing on what consumers want is the way to improve public sector productivity and increase public sector growth.’

Richard Arnott highlighted the complexity of the public sector commissioning process. Christopher Exeter replied: ‘We would welcome the opportunity to see procurement policy streamlined to ensure the process is simpler, allowing a greater plurality of advisors to access public contracts.’

Competition from abroad

And service design shouldn’t be intimidated by the growth in ‘off-shoring’ design, said Mat Hunter, as services have to be incubated on the ground. ‘It’s more important for designers to be closer to their clients than other designers. If we are redesigning the UK’s healthcare services, for example, we might seek inspiration from abroad but ultimately we need to focus activity in the UK’s hospitals and surgeries.’

Public finances may be restricted, but the commitment to building a green economy through procurement still exists and Sam Mitchell wondered if it represented another opportunity for design, particularly as, Mat Hunter pointed out, the government intends at least 25% of contracts to go to SMEs. Philippa Grantham saw a conflict brewing: ‘Designers are so desperate to keep some cash flowing that innovation and morals are cast aside. We need to be designing things that last and are re-usable. Designing out cost is fine but not at the expense of longevity.’

Optimism for the future

Roger Proctor finished on an optimistic note: ‘Design in the regions is well positioned, supported by many incubation units for new design businesses. What we will have to watch is that when the Regional Development Agencies finally go, the incubation units remain funded. The design sector is poised and can deliver so much more.’

Spending Challenge

We've submitted a response to the government's Spending Challenge, arguing that design techniques and designers will help it reduce the budget deficit by cutting public spending in a way that is fair and responsible.  Find out more about design and the Spending Challenge

 

Your comments

I feel like joining the Design Council discussion site although I hate the idea of joining any other facebook site! Prof. Kris Kumar, 18 June 2010
We don't need to wait for the budget - all public sector government funded marketing and communication projects have been frozen unless existing purchase orders are in place. The impact on creative service businesses with public sector clients will be potentially catastrophic. Bearing in mind suppliers have already invested significantly to win public sector tenders and are often then asked to creatively pitch at their own cost to win a project. Ian Robson, designer, 18 June 2010
The fall out is already happening; Business Link Yorkshire have cancelled all non-funded networking events and all promotion...look on Linkedin, there is, suddenly, a huge number of advisers updating experience/profiles etc. For me, as an Industrial Design business, I'd like to see the Innovation Voucher programme kept in tact as it is creating new business opportunities within the UK economy (by this I mean businesses making things). This budget is reflecting the need for a realignment of the UK economy...we've been spending beyond our means, which has seen a huge expansion in the service sector (which includes certain sectors of the design community). Like a credit card, eventually you run out of the ability to borrow more until you've paid back what you owe. Steve Roberts, designer, 21 June 2010
All the talk, at the preliminary peak of the crisis, was that innovation was the solution and this was even promoted by the blues (Conservatives) earlier this year, with the Dyson report: Ingenious Britain. Well, now it’s time we see how savvy UK politics actually is! After years of specialisation and focus on unregulated, frivolous behaviour by our banking and financial system, there has been talk of attempting to build a real and workable/sustainable economy. One not fabricated by fragile and sometimes false algorithms, rumours and, basically, betting on uncertainty, despite consequences, for the sole purpose of capital gain. Unfortunately, we are on thin ice and in danger of promoting yet another exodus of resources (and we have lots of those, don’t we?!?) and intellectual property. If we cull investment towards innovation and design, then our top ingenious design and tech brains/markets will just move abroad, taking advantage of foreign (far eastern) investment. This in turn will result in a migration of our intellectual property, hence any chance of economic growth (more corrosive than any migration within the finance sector). Some simple common sense, maths and basic knowledge of business economics and you can predict the devastating result and suppression to growth that this will cause. Not to mention, widening the international economic gap even further. Will innovation follow the route of depleting our resources, at exactly the wrong time, yet again? eg: manufacturing in the 80s, gold in the 90s and now IP? If so, where do we go from there? Steven Bookbinder, Business, 22 June 2010
The economy is not going to die, it's just going through some painful changes, and it is up to us creative thinkers to apply ourselves to the challenge of surviving the next three to five years and get into shape for a more supportive economy once we have cleared the deficit. This is not easy, but it is not impossible, and we will all learn a lot in the process. Mark Shaw, designer, 24 June 2010
As the Head of the largest Graphic Communication school in Europe, and one that is proud of our record of student employment business innovation, I am really concerned about the affect this budget will have on the creative industries and design education. In my view this budget is not about creative innovation and recovery (ideas, design and manufacture) but is about mining the resources of the public sector (the state’s assets, pensions, houses, university student entitlement)to smooth over and forgive the mess created in the private sector particularly by banking. It’s not about developing creative capital and it is too harsh and in the end damaging to the long-term health of the economy. We have already exported manufacturing.If we lose what is left of high end design and manufacture, and Higher education we will be in real danger of becoming a nation of call centres and retail parks for foreign goods. We need to engage with Government and see if they can respond to a broader view of economic management. This has been a budget for frozen rabbits and bright headlights. Prof Mario Minichiello, Birmingham City University, 24 June 
 
Some of us have been here more than once. The retail crash of the 80s, the dot com crash at end of the 90s, consumer credit topping £1trillion (how many noughts in a trillion?) in 2008, the recent and on-going bank crisis, and the inevitable public sector spending freeze of 2010. Throughout, some businesses, creative or otherwise, didn't survive and many more did and many new businesses were spawned. Crisis has a habit of spawning new thinking and new ways of doing things, re-evaluation, re-focus, efficiencies of scale, mergers, collaborations and co-creations. That's not such a bad thing - is it? Creative businesses do not run out of ideas. And at least they have the skills and resources to create new things and new business opportunity for themselves - not necessarily in the traditional fee for services model but in the 'become your own client model'. Traditional graphic design firm Unlimited has applied their superb typographical and graphics skills to the creation of a range of beautiful framed artworks, print based merchandise from cards to books and turned the front entrance of their studio in Brighton's North Laines into a pop up shop. They've invited other compatible creatives in to develop products to sell direct to the consumer. They still do fees for services but they have generated additional income streams through application of their skills and co-creation partnerships and revenue splits with print suppliers and so forth. Change is difficult, redundancies are painful but applying new thinking, and skills to income generation opportunities as your own client is not only a survival strategy (or at least an attempt at one) but it can also be great fun, motivational and a learning experience. New business models are going to be necessary - and better deals can be struck now more than ever with SME businesses, new start-ups and maybe even corporate and public sector clients on shared risk and reward deals, reduced fee with licensing options - it's not to everyone's taste or within comfortability zones - but for some it beats the hell out of going down without a fight. In some areas of public service intervention and business support service supply, £multi-millions have cascaded through one public sector body to the next in a top heavy anthill model that has left little for the intended beneficiary - the business community. That will now stop. That is a good thing. And some businesses that specialised in grant chasing will have to find more meaningful ways of growing their business through innovation or other means. So now that everyone finds themselves in the same boat - those that have the appetite, skills and brains to be most innovative and remain relevant - will find the ways and means to survive. They may look back on 2010 as the catalyst for change that provided the biggest opportunity to regain control of their own destiny. So good luck to one and all. Maxine Horn, British Design Innovation, 25 June 2010
All quangos must either be quashed or prove their worth, including the Design Council. There are at least 32 other bodies purporting to help the creative industries alone. We need to establish which of the many is fit for purpose and can give real value for money. Then get rid of the rest. Barry Waddilove, Designer, 21 June 2010

 

We've submitted a response to the government's Spending Challenge, arguing that design techniques and designers will help it reduce the budget deficit by cutting public spending in a way that is fair and responsible.  Find out more about design and the Spending Challenge

 

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