Caroline Norbury: Creative UK’s response to Government Spending Review

In her statement this afternoon, the Chancellor laid out her commitment to growth, opportunity and innovation. Worth £125bn to the economy, few sectors embody this message as strongly as the creative industries. Today’s Spending Review confirms that whilst our sector is now firmly recognised as a strategic growth sector, the test will be whether the Government’s investment priorities match this ambition.

There were positive indications in the Chancellor’s statement. With 95% of creative businesses holding SME status, we very much welcome the news that the British Business Bank will receive a two thirds uplift in investment. Research has repeatedly demonstrated that creative businesses have a high appetite and capacity for growth – and we look forward to continuing to work with the British Business Bank on how best we can unlock wider economic growth by backing creative businesses. For the Industrial Strategy to be successful, it is vital that creative SMEs can access this capital on equal terms with other growth sectors.

While the £22bn increase in R&D investment is encouraging – it is vital that clear support for the cultural and creative industries is factored into the uplift. Despite being worth 7% of the economy, the sector currently receives just 1% of R&D funding. Creative ideas are at the heart of innovation: underpinning not just the creative industries, but other priority growth sectors, including defence and life sciences. To see maximum return, the R&D criteria must explicitly recognise the value of R&D across the arts, humanities and creative industries.

The updated Treasury Green Book guidance provides an important opportunity to strengthen the case for place-based investment in cultural and creative infrastructure. This is a moment to embed our sector in local growth strategies across the UK and Creative UK will continue to work collaboratively with Combined Authority partners and local leaders to ensure that cultural and creative assets are fully reflected in emerging local growth strategies.

It was positive to hear the Chancellor reiterate the DCMS’ commitment to their Youth Strategy – allocating £132m to engage young people from all backgrounds in art, drama and music. A culture-rich education – complete with skills-focussed careers guidance – should be available to young people from all backgrounds. This investment, combined with greater support for apprenticeships and training programmes, is a step in the right direction.