Investment Opportunities in the Creative Sector
UK's Creative Industries: A Regional Growth Focus
A new report from the Creative PEC's State of the Nations series is shedding light on the future of growth finance for the creative economy. The report, titled "Growth finance for the creative industries," is authored by Dr Josh Siepel from the University of Sussex, Dr Sawan Rathi, and Marc Cowling from the Creative PEC and Oxford Brookes University respectively.
The report focuses on place-based approaches to supporting culture and re-imagining growth finance for the creative economy across the whole of the United Kingdom. It highlights the fact that investments in the creative industries are not evenly distributed, with a strong concentration in London and the South East. However, the report also identifies regional city regions and clusters as having significant growth potential. These include the North East, Dundee, West Yorkshire, Belfast, Liverpool, and the West of England.
The UK government, recognising the creative industries as a key growth sector, is seeking to promote regional development through targeted interventions and funding. The government's 2025 Creative Industries Sector Plan, part of its broader Industrial Strategy, aims to unleash growth in these city regions by increasing financial support, including equity and debt finance, for creative firms outside London and the South East.
This plan includes measures such as the Creative Places fund, which aims to stimulate regional creative economies, and improvements in skills development and infrastructure investments across the country to enable greater access and opportunity. Public finance institutions like the British Business Bank are also increasing the pool of finance for creative businesses, addressing regional disparities in accessing venture capital and other funding sources.
The report also discusses the important role of higher education in the arts and culture sectors. It examines student participation in creative further education in the four UK nations. Regular reports on each thematic area will be published biannually over the five years of the Arts and Humanities Research Council (AHRC) funding.
The report further explores audiences and workforce within the arts, culture, and heritage sectors. It reveals that creative businesses are more likely to identify new R&D opportunities but may face barriers in accessing the capital needed to act upon these. The report also looks at UK trade in a global creative economy, and the role of growth finance in the creative industries.
In conclusion, while venture capital finance for UK creative industries remains regionally concentrated, government policies increasingly emphasize regional growth through targeted sector plans, funding mechanisms, and support for creative clusters outside London and the South East to promote a more balanced distribution of investment. The report, "Growth finance for the creative industries," can be accessed through the following citation: Siepel, S, Rathi, S and Cowling, M (2024) 'Growth finance for the creative industries', Creative PEC State of the Nations Research Series. United Kingdom: Creative Industries Policy and Evidence Centre (Creative PEC). DOI:10.5281/Zenodo.13889750
[1] Source: Creative PEC State of the Nations Report, 2024 [2] Source: Government's 2025 Creative Industries Sector Plan [3] Source: Department for Digital, Culture, Media and Sport, 2022 [4] Source: Creative Industries Policy and Evidence Centre, various publications
- The report, "Growth finance for the creative industries," highlights the need for place-based approaches to support culture and re-imagine growth finance in the UK's creative economy.
- The UK government's 2025 Creative Industries Sector Plan aims to increase financial support for creative firms outside London and the South East, recognizing these regions as key growth sectors.
- The report identifies regional city regions and clusters, such as the North East, Dundee, West Yorkshire, Belfast, Liverpool, and the West of England, as having significant growth potential.
- Dr Josh Siepel from the University of Sussex, Dr Sawan Rathi, and Marc Cowling from the Creative PEC and Oxford Brookes University respectively authored the report focusing on the future of growth finance for the creative economy.
- The report emphasizes that investments in the creative industries are not evenly distributed, with a strong concentration in London and the South East.
- The UK government seeks to promote regional development by investing in skills development, infrastructure, and providing measures like the Creative Places fund to stimulate regional creative economies.
- Public finance institutions like the British Business Bank are working to increase the pool of finance for creative businesses, addressing regional disparities in accessing venture capital and other funding sources.
- higher education plays an important role in the arts and culture sectors, with regular reports on student participation in creative further education in the four UK nations.
- Creative businesses are more likely to identify new R&D opportunities but may face barriers in accessing the capital needed to act upon these, according to the report.
- The report discusses the role of growth finance in the creative industries within the UK and across international markets, exploring UK trade in a global creative economy.
