Examining a Year's Worth of State of the Union Addresses
UK Creative Industries Thrive Amidst Regional Growth and Global Competition
The UK's creative industries continue to grow and make a significant impact on the nation's economy, as highlighted by recent findings from the Creative PEC's thematic research and reports on UK trade in the global creative economy.
Economic Contribution and Growth
In 2023, the creative industries contributed over £124 billion to the UK's Gross Value Added (GVA), representing approximately 5.2% of the country's economy and employing 2.4 million people, or 7.1% of the national workforce. This growth surpasses pre-pandemic figures, signaling a robust recovery and expansion in the sector. Oxford Economics estimates suggest that with increased investment (20% over 2019 levels), the sector could create 300,000 new jobs and reach £132.1 billion in GVA by 2025, underscoring the sector's substantial economic potential.
Regional Distribution and Clustering
The Creative PEC's "Geographies of Creativity" research emphasises the importance of creative clusters—geographical areas where creative businesses concentrate—exploring why they form and how they impact regional economies. London remains the dominant hub, generating over 50% of creative industry GVA in 2022 and hosting about 30% of the creative workforce. However, this concentration leads to regional inequalities, with calls for redistributing resources to widen access beyond London.
Notably, the Great South West has emerged as the UK's fastest-growing creative region, boasting a 4.1% compound annual growth rate and producing £2.7 billion in annual GVA through 15,870 businesses and 35,000 employees plus freelancers. This demonstrates creative vitality spreading beyond metropolitan centers and enhancing regional economic diversification.
Trade and Global Context
While the search results do not provide explicit details from the "UK Trade in a Global Creative Economy" report, the overall data imply that the UK's creative industries are integral to its international economic standing and cultural influence. Growth in digital sectors like IT, software, and video games—which are less impacted by the pandemic—strengthens the UK's competitive advantage globally.
Key Findings and Future Reports
The report on audiences and workforces within the arts, culture, and heritage sectors, published via an exclusive with Channel 4 News, found that 90% of people in England had engaged in the arts, with similar figures for the rest of the UK. The next four State of the Nations reports are in the pipeline, including R&D Innovation Finance in October 2024, Foreign Direct Investment in November 2024, Creative subjects in Higher Education in December 2024, and Creative Skills Monitor with a focus on employer perspectives in March 2025.
The research themes for the 'State of the Nations' series were selected because they represent the fields where there is sufficient data to explore longer term trends and provide insight on where policy interventions could be best placed. A new policy brief recommends that policymakers at a national, regional, and local level should embed EDI targets for all place-based ACH interventions, embed robust monitoring and evaluation in policies designed to address inequalities in ACH sectors, make more effective use of existing research to support further data collection and evidence development across the ACH sectors, and examine possibilities for increasing data on EDI within official datasets.
As the creative industries continue to evolve, it is crucial for policymakers to stay informed and adapt to support the sector's growth and address any emerging challenges. The Creative PEC's research and reports provide valuable insights into the current state and future direction of the UK's creative industries.
- The Creative PEC's research underscores the importance of creative clusters in impacting regional economies.
- Creative industries' growth surpassed pre-pandemic figures, with an expected 20% investment potentially creating 300,000 new jobs.
- The Great South West, an emerging creative region, boasts a substantial contribution to the UK's GVA and job creation.
- The UK's creative industries are integral to its international economic standing and cultural influence.
- Digital sectors like IT, software, and video games provide a competitive advantage for the UK in the global creative economy.
- Data from the Creative PEC suggests that 90% of people in England have engaged in arts, with similar figures for the rest of the UK.
- The research themes for the 'State of the Nations' series focus on where policy interventions could be best placed.
- Policymakers are encouraged to embed EDI targets, robust monitoring, and evaluation in policies addressing ACH sector inequalities.
- Further data collection and evidence development across ACH sectors are vital to inform policymakers and support sector growth.
- EDI data within official datasets needs to be improved to address inequalities in ACH sectors.
- Online education, a facet of the creative sector, is expected to see continued growth and innovation in response to the changing educational landscape.
- Continued analysis and adaptation of policies related to education-and-self-development, policy-and-legislation, politics, learning, general-news, and internationalisation is essential for supporting the UK's creative industries in the future.
