Autumn Budget: Creative UK’s Response Statement
// creative industries // Fiscal Event
On 30 October 2024, Chancellor of the Exchequer, Rachel Reeves, will deliver the first Budget from the new UK Government, since Labour’s UK General Election win in the summer.
Ahead of this all-important fiscal moment, Creative UK is urging the Chancellor to acknowledge the Cultural and Creative Industries not just as economic engines, but as interdependent drivers of both cultural enrichment and transformative growth.
Already named as a priority sector within the forthcoming Industrial Strategy, the Creative Industries will have a significant role to play in the UK Government’s growth plans.
But the success of our sector isn’t simply a balance sheet matter. It’s about understanding that cultural value and economic value are inextricably linked. You cannot have one without the other – not in a way that’s sustainable or enriching for the broader society.
Creative UK put forward a submission to the Treasury which underlines this principle, with clear asks and recommendations that we believe will unlock the sector’s full potential.
These are:
1. Develop a fit-for-purpose investment framework
Persistent structural barriers – from regional disparities to fragmented public support – limit the reach of our potential. A comprehensive, cross-sector investment framework that bridges public and private finance is required to create a cohesive strategy for growth that benefits businesses, freelancers, and communities alike.
2. Develop an investment data map
A key challenge for all investors is understanding where and how capital in the cultural and creative industries is deployed. HM Treasury should commission a study that consolidates public, private, and philanthropic funding into the creative sector and helps target future investments to maximise both cultural and economic returns.
3. Address market failures in creative investment
Traditional investment models struggle to accommodate the unique nature of IP-driven creative businesses. Government intervention is needed to create sector-specific financial instruments that recognise creative intellectual property as a key driver of both economic and cultural value.
4. Establish a dedicated financial institution to serve our unique sector
We need to revolutionise financial access through a specialist institution that understands the value of creativity as both a cultural and economic force. A standalone institution would fuel investment for scaling projects and ensure long-term sustainability in a sector critical to the UK’s future growth and global influence.
5. Re-label arts funding as investment
For too long, arts funding has been labelled a ‘cost’ – a misrepresentation of its true value. We propose re-labelling this as ‘investment’ to reflect its contributions. not only to economic growth, but also to societal well-being and the creation of intellectual property that shapes our culture and national identity.
6. Expand and protect tax stimulus for the cultural and creative sectors
The introduction of sector-specific tax reliefs has been a step in the right direction, but further action is needed. Cultural venues and production houses are not just businesses; they are cultural assets. Tax reliefs help them thrive, enriching both local economies and the national cultural fabric. Expanding business rate relief to all cultural venues and ensuring that extending the global competitiveness of our tax will help the UK retain its cultural and creative leadership.
7. Reform R&D tax relief
R&D doesn’t just happen in labs. The UK’s innovation strategy must extend to the arts, humanities and social sciences, where cultural and technological advancements intersect. Expanding R&D tax relief to include these fields will drive cultural innovation while reinforcing the UK’s position as a global leader in creative technologies.
8. Support regional creative growth
Investing in regional creative ecosystems is about more than economic expansion, it’s about place-making and empowering local communities to shape their own cultural identities. By nurturing creative hubs across the UK, we unlock the potential for regional regeneration, fostering environments where creativity becomes the heartbeat of local development.
9. Strengthen creative skills development
To unlock the full potential of the creative workforce, lifelong skills development must be prioritised – from early education to continuous professional growth. The Growth and Skills Levy needs to adapt to the realities of project-based employment, ensuring training is accessible, flexible and tailored to both freelancers and businesses. Investing in creative skills isn’t just about jobs; it’s about building a workforce that can drive both cultural and economic value for decades to come.
A vision for integrated growth
As the Chancellor prepares to deliver the Fiscal Statement, we want to remind her that the question is not whether we should support the cultural and creative industries as cultural assets or economic drivers.
The answer lies in recognising that the two are fundamentally inseparable. The long-term success of the UK economy depends on nurturing culture and creativity – not as luxuries – but as foundations for sustainable growth.
I look forward to hearing more this Wednesday.