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New Report: Sir Peter Bazalgette’s Review Sets recommendations for continued growth of UK’s Creative Industries

22 September 2017

The UK’s booming creative industries could be worth £128.4 billion to the UK economy by 2025 and help to create up to 1 million new jobs by 2030 according to an independent review of the sector published today (Friday 22 September).

The review, commissioned by the government and led by the current Chair of ITV Sir Peter Bazalgette, outlines key recommendations for how the Creative Industries can underpin the UK’s future economic growth. It highlights how the sector is continuing to outperform other sectors in terms of employment, having already grown 300,000 jobs between 2011 and 2015.

The review makes a number of recommendations on how government and the Creative Industries can work together to remove barriers to growth. It spans issues from access to finance, intellectual property, trade and creative clusters – areas with high concentrations of ambitious companies who will drive regional growth.

Culture Secretary Karen Bradley said “The UK’s Creative Industries are an economic powerhouse and the government is committed to removing the barriers to its growth.

The key challenge now is turning these ideas into a strong partnership, which is credible and has buy-in from both government and industry.

I encourage the sector to do what it does best - think creatively and work with us on achieving a compelling and ambitious deal that allows the UK Creative Industries to continue to thrive.”

Other asks include a strategy to attract and develop young talent to make the Creative Industries more accessible, including a careers programme for secondary schools and expanding the UK’s network of Saturday Clubs.

The review’s recommendations will now be considered carefully by the Government as part of its Industrial Strategy and used to inform work towards a sector deal in the coming months. In response the Government has already announced the opening of the £80 million Creative Industries Clusters Programme competition, led by the Arts and Humanities Research Council (AHRC).

Business Secretary Greg Clark said “The UK’s booming Creative Industries contribute nearly £90 billion to the economy and employ more than two million people.

The review unveiled today demonstrates our world-class talent and expertise in these areas and reflects the industry’s vision for how we build on these strengths, now and in the future. We are grateful to Sir Peter Bazalgette for his excellent work. We will be working with him in the coming months towards a sector deal that helps us grasp the opportunities ahead.

The £80 million Creative Industries Clusters Programme being launched today will deliver a further boost to our creative industries, help spread prosperity and grow the creative skills base across the UK.”

This funding means that from today, eight areas of the country will be able to establish creative Research and Development (R&D) Partnerships between universities and businesses. The Programme, which is supported by £39 million from the Industrial Strategy Challenge Fund and matched by industry, will help catalyse economic growth and provide the skills needed for the jobs of the future and respond to challenges identified by the creative industries in their cluster.

And a new Policy and Evidence Centre will help fill the gaps in our understanding of the creative industries - from the full value of their economic contribution to how they compare internationally.

Sir Peter Bazalgette said “In every scenario the Creative Industries are set to be of central importance to the UK’s future success. We have two great assets: the English language and our creativity, but the skills and business models of this sector are of increasing importance.

My report recommends simple ways of maximising the potential of this crucial sector which I’d like to see become part of the government’s developing Industrial Strategy.

I urge government to ensure the final strategy is based on a fundamental understanding of what these industries need to thrive.”

Nicola Mendelsohn, Vice President for Europe, the Middle East and Africa at Facebook and chair of the Creative Industries Council, said "On behalf of the Creative Industries Council, I welcome Sir Peter Balzalgette’s report, which makes clear how vital our industries are to the economy of the 21st century, and frames an exciting ambition for growth and jobs over the next decade.

Sir Peter has identified some important priorities for action: we strongly share his desire to promote innovation, intellectual property and access to finance for growing creative enterprises; to support growth in international trade and creative clusters around the UK; and to secure the pipeline of diverse talent which our industries need in order to thrive.

The Council looks forward to working with Government, and all parts of the industry, over the coming weeks in order to secure a Sector Deal which builds on Sir Peter’s review and cements the UK’s position at the heart of a thriving global creative economy."

John Kampfner, CEO of Creative Industries Federation said “The Federation welcomes Sir Peter Bazalgette’s review and the growing acknowledgement by government that the creative industries are an essential part of the country’s future growth. We are also pleased to see that many of the recommendations the Federation and our membership submitted to the review have been reflected within it.

Building the pipeline of talent to supply the creative workforce is crucial to ensure the continued success of the sector - the fastest growing of the UK economy worth £87bn. That is why the Federation particularly welcomes the initiatives around skills including our idea for a Creative Careers Campaign within the Bazalgette review."

Sir Peter was commissioned to undertake the review by Culture Secretary Karen Bradley and Business Secretary Greg Clark following the Government’s Industrial Strategy Green Paper in January.

The full review can be read here.

The review’s findings show the industry played a key role in the UK’s economic recovery. It contributed £87.4 billion in GVA in 2015, 5.3% of the UK economy (comparable to the Construction or Information sectors) and between 2010 and 2015 grew by 34% - faster than any other sector.

It also outperformed other sectors in terms of employment growth: between 2011 and 2015, employment in the sector increased by 19.5% (circa 300,000 jobs) compared to 6.3% average across the wider UK. The sector is also a net exporter of services (£11.1bn surplus in 2014).

The report also finds that creative occupations, which make up a high proportion of Creative Industries jobs, are highly resistant to automation with 87% of creative workers in the UK at low or no risk, meaning their share of the workforce is likely to rise steadily in coming years.

Sir Peter Bazalgette is Chairman of ITV and Chair of HM Government’s Holocaust Memorial Foundation. He serves on the Advisory Boards of BBH and YouGov and is currently Chair of the Baillie Gifford Non-Fiction Book Prize. From 2013 until 2017 he was Chair of Arts Council England. He is also a former Non-Executive Director of the DCMS.

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