UK’s cultural and creative industries are strategic national asset

After a comprehensive campaign of state support and tax credits, the UK’s cultural and creative industries are paying major dividends on the investment. According to a new study, over the last decade, culture has returned gross value added of twice the rate of the wider economy.

The cultural and creative industries represent more than 3% of the global economy and provide jobs for over 6% of the world’s workforce, a whitepaper from FTI Consulting and the World Governments Summit has shown. Economic data indicates that investing in these sectors yields high returns; every dollar spent on creative projects generates an estimated $2.50 in total economic activity. This growth provides secondary benefits to other areas, including tourism, local retail, and city services.

And the UK is a prime example of this. Sectors including music, film, gaming, publishing, architecture, and digital content have become essential engines for the nation’s economic health. In June 2023, the UK’s creative industries employed 7.9% of the workforce, around 2.5 million people, and contributed to 5.7% of the GDP.

Unsurprisingly, London hosts the lion’s share of the UK’s cultural industry – and so the capital also benefits most from the creative sector’s economic contribution. More than 10% of London’s economy is based in culture – double the portion of the second-placed South East of England – at a little over 5%. However, the work which the industry supports, and the tax revenues that yields, benefit the whole country.

According to the researchers, the UK economy has seen a gross value-added growth rate of 21.5% between 2010 and 2022. However, the GVA of the creative industries have yielded a 50.3% GVA expansion over that time: a major pay-off following the government support the cultural sector has also enjoyed in that time.

Countries use different institutional models to strengthen their creative sectors – and the UK is a strong example of the whole-of-government approach, the researchers contend. Spearheading its efforts is its Creative Industries Council, which was established in 2011 as a joint forum between government and industry. Co-chaired by the Secretary of State for Culture, Media and Sport and industry leaders, the Council operates through specialised working groups addressing access to finance, intellectual property, skills, and export growth.

This structure enabled coordinated policy responses, including the Creative Industries Sector Deal (2018), part of the UK Industrial Strategy, which committed more than £150 million alongside industry matching to support skills, regional growth, innovation centres and export support. Meanwhile, the UK maintains one of the world’s most comprehensive fiscal frameworks for the creative economy, featuring Corporation Tax reliefs and expenditure credit schemes that stimulate investment, innovation, and global competitiveness across creative sectors.

The meteoric rate of return on that comprehensive level of support shows that public investment in the sector can and will yield major economic benefits. This was echoed by Antoine Nasr, a senior managing director with FTI, at the report’s launch.  

He noted, “This report shows that creativity is not just an asset for culture, it is a cornerstone of national economic strategy. By integrating governance, financing, talent development and global engagement, governments can unlock transformative value from the creative economy, driving innovation, job creation and international influence.”