UK Industrial Sector Strategy Plans – Creative Industries

Increased public and private R&D investment into creative industries, with a focus on createch. UKRI will work towards increasing public spending and will leverage substantial industry investment in order to strengthen R&D in the creative sector. UKRI will publish a new Creative Industries R&D strategy later in 2025, to enhance and streamline the funding support journey for start-ups through Innovate UK and support access to Horizon Europe funding.

A £100 million UKRI investment over the Spending Review will support the next wave of R&D creative clusters in new sub-sectors and locations throughout the UK. This will be accompanied by HMRC publishing revised guidance for R&D tax reliefs.

UKRI will strengthen support for commercialisation and tech adoption. It will do this through various programmes and direct support for creative scale-ups including through the Catapult Network.

UKRI to report to DCMS and DSIT with evidence-based recommendations on createch commercialisation and spinouts from universities and funds involved in the sector. Here, it seems the Government believes it can use the successful growth of the UK’s fintech industry as a roadmap for createch success.

This remains one of the most challenging issues that need to be resolved. The Government is keen to support rightsholders while at the same time being determined to allow AI developers to use creative material to model train their algorithms. The Government has consulted on a possible framework for copyright and AI, looking at all options, and recognising that its approach to creating any such framework needs to be carefully thought through.

Following the consultation, the Government will set out an economic impact assessment on all options under consideration along with a report on the use of copyright material for AI training, transparency and technical standards.

Part of its solution is a commitment to establishing a Creative Content Exchange – an online marketplace for selling, buying, licensing, and enabling permitted access to digitised cultural and creative assets. This new marketplace will allow content owners to commercialise their assets whilst at the same time providing data users such as AI developers, with access to those assets.

The Government emphasises its desire for the UK to lead the way in the protection of intellectual property rights. However, it is not clear how this commitment to a robust regime for the protection of intellectual property rights sits alongside fostering an environment in which AI developers are given the freedom to use creative assets for model training.

The plan identifies the challenges faced by creative businesses in attracting growth capital (one of which is an absence of data on exits and returns, which discourages equity investors). The plan identifies the need for leaders of successful creative businesses to be given the tools and opportunities to obtain the financial skills to grow, including in relation to obtaining equity and debt finance. Linked to this, “investment readiness” support will be rolled out, including through the six strategic mayoral authorities.

Commitment to ensuring public finance is made more available for creative businesses, and also to catalyse private investment. This will be achieved by the British Business Bank committing an additional £4 billion of Industrial Strategy Growth Capital to support investment and growth. The British Business Bank will fund VC managers investing in the creative sector and improve the availability of finance through expanded early-stage equity funds, angel syndicates and debt funds. . The Government will also look into the possibility of encouraging IP-backed lending (where valuable IP provides security for lenders). This is an interesting concept, but one which could be challenging to achieve in practice. Details of how this could be implemented are lacking.

Acknowledgement that there is an increasing skills gap and shortages in the creative industries. The Government has proposed various interventions, including carrying out an independent Curriculum and Assessment Review, to ensure creative subjects are appropriately covered.

Proposal to launch a new National Centre for Arts and Music Education in 2026, and a plan to provide significant investment to ensure young people are equipped with the in-demand skills. The Government also recognises the role of freelancers in the creative sectors and is committed to ensuring that the appropriate rights and protection are in place to deliver good quality self-employment. Detail in the plan on how this will be achieved is limited.

The Government plans to reform the Creative Industries Trade and Investment Board and appoint a new chair to catalyse inward investment. New plans to be established in order to provide access to high growth emerging markets, focusing on key creative industries subsectors including film and TV; music, performance and visual arts; video games; and advertising and marketing.

Plans to streamline the planning process to enable faster development of infrastructure, such as film studios, music arenas, and large-scale performing arts venues. Ambitions to make changes to the existing licensing system to support creative and hospitality sectors, including live music.

Support for lower business rates, including for cinemas, museums, galleries, and grassroots music and performing arts venues, and lower business rates multipliers for Retail, Hospitality and Leisure premises with rateable values under £500,000.40% reduction on business rates for film studios. Consumer protection measures, including in relation to ticket resale.

The Plan identifies four “frontier industries” with particularly high growth potential – film and TV; video games; music, performing and visual arts; and advertising and marketing. The Government’s measures will place particular emphasis on targeting these subsectors.

A new £75 million Screen Growth Package over three years to develop independent UK screen content, support inward investment, and showcase the best of UK and international film. The Government has also introduced an enhanced rate for UK visual effects costs as well as an Independent Film Tax Credit.

Dedicated funding to support screen sector skills, including £10 million of Government funding to expand the world-leading National Film and Television School. Investment to unlock £11 million of private investment, including from the Walt Disney Company, the Dana and Albert R. Broccoli Foundation, and Sky. Support for the BFI Film Academy to support 16–25 year olds from underrepresented backgrounds to enter the film industry.

Modernising co-production treaties with other jurisdictions including Canada, Australia and New Zealand.

Building on the Media Act and Ofcom’s Public Service Media Review to support public service media and the wider television ecosystem. Plans to update the policy and regulatory framework to respond to the changing market and promote a level playing field, while maintaining universal access to distinctive and trusted public service content.

The plan states that it will instruct the CMA to consider changes in the sector. This would include assessing possible consolidation between broadcasters in the interests of financial sustainability and to produce the best outcome for audiences.

Plans for BBC Charter Review, including exploring how the BBC’s commercial’s activity could support investment, growth, development and promotion of UK IP internationally.

Government provides for a new £30 million Games Growth Package over three years. UK Games Fund to be enhanced by providing support for new UK titles and skills, attracting match-funding for every supported project. Government to provide funding for the London Games Festival.

Stable, efficient and competitive tax measures for video games production underpinned by effective administration by the BFI and HMRC. Video Game Expenditure Credit for video game developers to be maintained. The Government will continue to work with stakeholders to ensure the continued effectiveness of the reliefs.

New industry-led UK Video Games Council of industry representatives to work with the Government and the Creative Industries Council to support growth of the sector.

Up to £30 million for a new music growth package over the next three years to help more UK emerging artists. Work on an industry-led agreement on music streaming to boost earnings for creators.

New ticket levy on arena and stadium gigs to deliver up to £20 million annually through the LIVE Trust to boost the UK’s grassroots music sector.

Support for the arts ecosystem through a range of Government funding, including grants and the cultural tax reliefs for theatres, orchestras, museums and galleries, to boost investment.

Capital investment in arts and culture infrastructure, supporting organisations to make buildings and infrastructure fit for future generations.

Aims to connect adtech businesses with accelerator programs to equip them for international expansion and connect them with key investors.

Plan to create growth opportunities for smaller ad agencies by making it easier to navigate the Crown Commercial Service and Local Authority procurement processes for public sector advertising services contracts.

£100 million UKRI investment to support R&D creative clusters in new sub-sectors and locations throughout the UK. This is aligned with the new Local Innovation Partnerships Fund, which will give up to £500 million to regions across the UK and make local leaders part of decision making.

£25 million allocated for expansion of the “CoSTAR” network across the UK, including an additional five new R&D labs and two showcase spaces. CoSTAR is a government initiative the aim of which is to create a national network of createch R&D labs.

British Business Bank to launch a Cluster Champion programme. ‘Champions’ with deep expertise and local knowledge to support investment in 10 city regions. This will be backed with an expansion to its Nations and Regions Investment Fund.

New Creative Places Growth Fund, which will devolve a total £150 million over three years to six high-potential Mayoral Strategic Authorities (MSAs). This funding will enable Mayors to have input into interventions that work for their specific regions. For example, by supporting local creative businesses and practitioners to up-skill in key areas (including investment readiness).

Support for “creative corridors” across the UK to connect high-potential clusters. This includes support for the West of England-South Wales Creative Corridor.