Creative Industries Federation and Creative England, have published new data showing the impact of the pandemic on the Creative Industries. Their report The UK Creative Industries: unleashing the power and potential of creativity also shows the potential that can be unlocked, with the right investment. The report was conducted with newly commissioned data from Oxford Economics.
Key findings include:
- Oxford Economics estimates that the Creative Industries could create 300,000 new jobs and generate £132.1 billion in GVA by 2025, if spend and investment is increased by 20% on 2019 levels.
- The impact of greater investment in the Creative Industries is likely to be felt far beyond the sector, with new modelling from Oxford Economics estimating that prior to the pandemic the Creative Industries supported an additional 1.4 million jobs and £62.1 billion in GVA through its UK supply chains.
- The combined economic footprint of the sector is found to have been £178 billion in GVA in 2019, with a total of 3.5 million jobs reliant on the Creative Industries – more than 1 in 10 UK jobs and four times the workforce of the five largest UK supermarkets combined.
- The IT and software sector, which includes video games, was the least impacted by the pandemic.
The report’s findings echoes TIGA research from January 2021 which found that:
- The UK Video games sector contributes £2.2 billion to UK GDP annually and generates over £900 million in tax revenue.
- The industry workforce comprises 18,279 and the number of jobs indirectly supported by studios stands at 30,781.
- The video games industry is set for even more growth with 72% of respondents to a TIGA survey expecting to increase employment in 2021.
To accompany the report, the Creative UK Group have launched the #WeAreCreative campaign, encouraging creative people and businesses to show their power and potential to MPs and government officials on social media.
TIGA continues to campaign for an increase in Video Games Tax Relief (VGTR) from 25 per cent to 32 per cent to deliver, by 2025:
- 1,485 additional development staff in studios.
- 2,715 additional indirect staff.
- £255 million additional development expenditure.
- £233 million direct and indirect additional estimated tax contributions.
- £565 million additional estimated GDP contribution.
Dr Richard Wilson OBE, TIGA CEO, said:
“The UK’s creative industries are vital to the economy and this CIF report shows the huge contribution the industry makes and the potential it has, with the right investment.
“This research underlines TIGA’s calls for the Government to promote the video games industry over the coming years. The industry provides high-skilled employment in clusters throughout the country and has proven it is relatively resilient to Coronavirus-engendered lockdowns.
“An increase in the rate of VGTR would enhance the appeal of the UK as a centre for games development; encourage investment; promote the development of new IP; boost studio formation and longevity; encourage employment creation; support economic growth across the UK; and enable our industry to secure a larger share of the global market for games production.”