The government is boosting the UK’s creative industries by £77m as part of a plan to support the next Adele or Ed Sheeran in a sector that is “going like gangbusters”, according to the prime minister.
The funding will be spread among hundreds of grassroots music venues, new video games studios, fashion, film and other creative ventures.
Four new research and development labs focusing on visual effects, motion-capture technology and AI will be supported with an additional £63m investment from industry.
The government wants its “Creative Industries Sector Vision”, developed with the Creative Industries Council, to help the sector grow by £50bn and create 1m extra jobs over the next seven years.
“The creative industries are a true British success story, from global music stars like Adele and Ed Sheeran to world-class cultural institutions like the BBC,” said Rishi Sunak.
“These industries have a special place in our national life and make a unique contribution to how we feel about ourselves as a country.
“We want to build on this incredible success to drive growth in our economy – one of my key priorities – and to ensure that UK creative industries continue to lead the world long into the future.”
Despite facing huge challenges during the Covid pandemic, the sector has grown at 1.5 times the rate of the wider economy over the past decade, contributing £108bn in gross value added (GVA) annually. Employment in the industries has grown at five times the rate of the economy since 2011.
Speaking at London Tech Week earlier this week, Sunak said the creative industries were “going like gangbusters” and represented a “unique strength” for the UK.
The overall amount announced on Tuesday includes £50m to help startups and creative entrepreneurs around the country.
About 400 grassroots music venues – the “lifeblood of our world-leading music sector”, according to the government – will receive an additional £5m over two years via Arts Council England. However, the sum averages out at just £12,500 for each venue.
Funding for the Music Exports Growth Scheme, which helps emerging musicians break into global markets, will be expanded by £3.2m over the next two years. Brit Rising Star nominee Beabadoobee said the funding had given her a “helping hand” and “more money will … help even more artists break through”.
An additional £5m will go to the UK Games Fund, bringing its total funding to £13.4m over the next two years. The fund awards grants to young video game developers to turn ideas into prototype products.
“The games industry is worth billions of pounds,” said Lucy Frazer, the culture secretary. It was important as a research and development vehicle for other sectors. “For example, the 3D technology [used in gaming] can also be used for robotic arms in surgery.”
London fashion week and the London film festival will get new funding of £2m and £1.7m respectively as “international showcase events which enhance our soft power and boost creative exports”.
Jeremy Hunt, the chancellor, said: “Our creative industry isn’t just about the glitz and glam of the red carpet in Leicester Square. It brings in £108bn a year to help fund our public services, supports over 2 million jobs, and is world renowned.
“That’s why we’re backing it as an industry to drive our economic growth, keeping the UK at the top of the world’s cultural charts with a multimillion pound boost.”
The creative industries employed about one in 20 people in the UK, about the same as financial services, Hunt said.
Regional research labs will be established in West Yorkshire, Dundee and Belfast, with a national lab in Buckinghamshire, supported by £63m investment from industry on top of £75.6m previously committed by the government.
The labs will ensure the UK has the necessary skills and infrastructure to stay ahead in new virtual production techniques in film, tv and live events, such as the technology used in the Abba Voyage production.
Peter Bazalgette, industry co-chair of the Creative Industries Council, said the plans “champion R&D-led innovation and future skills, drawing on the talent of all our communities”.
Daniel Wood, co-CEO of the video games trade body Ukie, welcomed the new funding. “We are pleased to see that the government continues to recognise the importance of the country’s games industry.”
The additional £5m “will support even more UK games businesses to scale up by accessing the finance they need to create the next generation of games, while also developing the innovative and original content a global audience of billions love.”
