Manifesto: Investment in R&D

In this series, we reflect on the one-year anniversary of Creative UK’s Manifesto for change. ‘Our Creative Future’ was published just months before the UK General Election that would bring about a new Labour Government. 

So much has happened in that time, but one thing has remained constant: Creative UK has been using its voice to shout loudly about the issues we laid out as priority – and those which matter to our members, our partners, the businesses we work with and invest in, and the sector.  

So what, if anything has moved on in the last year? This week, we’ll be posting about each priority area from our Manifesto in turn, taking a deep dive into what we said, why it matters, and what has happened so far. 

Today, we’re focusing on Innovation.  

We said:

Facilitate innovation by increasing investment in research and development funding, and supporting new products, services and IP.  

 Organisations scale when given the space to develop and test new ideas. To stimulate growth and support innovation, the UK Government should double public research & development (R&D) investment in the Cultural and Creative Industries by way of a national programme, making available small amounts of proof of concept and seed-corn funding.  

This will support the creation of new intellectual property, products and services in the UK and will lead to a multiplier effect, catalysing greater private investment in the sector.  

Higher Education has a vital role to play in our future innovation, and as such, research partnerships between industry and universities should be supported.   

The definition of R&D tax credits should also be broadened, to include arts, humanities and social sciences research. We must ensure they work for SMEs, so that small companies are also incentivised to innovate.

Key developments: 

Over the past year, the UK’s approach to innovation and creative R&D has been marked by a growing recognition of the sector’s economic and cultural value, alongside persistent underinvestment and structural gaps that risk holding back its full potential.  

In early 2025, the Government announced a record £13.9 billion public R&D budget, with UKRI receiving the largest share. However, this headline investment has not translated into a step-change for the creative industries.  

Despite sector calls, including from Creative UK’s Unleashing Creativity report, there has been no reform to broaden R&D tax credits to include the arts, humanities or social sciences, and limited action to make innovation funding accessible to SMEs that trade primarily in ideas, content and experience rather than tangible assets.  

The Government’s own innovation and science policy continues to skew heavily towards STEM sectors, leaving a gap in support for the UK’s distinctive and fast-growing creative capabilities.  

At a strategic level, the Creative Industries Sector Taskforce, co-led by Baroness Shriti Vadera and Sir Peter Bazalgette, began work on a new growth plan for the creative industries, expected in June 2025. This is an important opportunity to embed creativity and creative skills in innovation policy, increase public investment in IP-rich sectors, and strengthen the links between universities, creative businesses and public R&D institutions.