Creative Industries Sector Deal

Creative Industries Sector Deal
Name	Creative Industries Sector Deal
Announced	2018
Country	United Kingdom
Sector	Creative industries
Partners	Department for Digital, Culture, Media and Sport, UK Research and Innovation, British Film Institute, Creative England, Arts Council England
Funding	public and private investment

Contents

Creative Industries Sector Deal

The Creative Industries Sector Deal was a major UK policy package announced in 2018 to support film industry, television industry, video game industry, music industry, publishing industry and advertising industry clusters across the United Kingdom. Framed as part of the UK’s industrial strategy under Theresa May’s administration and coordinated with Department for Digital, Culture, Media and Sport and UK Research and Innovation, the Deal aimed to boost productivity, export growth and skills through targeted investments and partnerships with bodies such as the British Film Institute and Arts Council England. It sought to leverage public funding with private sector commitments from firms like BBC, ITV, Sky UK, Warner Bros., Sony Music Entertainment, and Disney.

Background and Rationale

Drivers for the Deal included concerns raised by reports from Creative Industries Council, analyses from Nesta, studies by Centre for Cities, and forecasts by Global Entrepreneurship Monitor showing strong growth in clusters such as Sheffield's media cluster, Manchester's MediaCityUK, the Leeds digital sector, and London’s West End theatre and Soho post-production ecosystem. Influences included comparative policy examples like Creative Europe, economic strategies in South Korea, and initiatives from New York City and Los Angeles County. The rationale referenced the role of flagship institutions including Royal Opera House, National Theatre, Royal Shakespeare Company, and companies such as Electronic Arts, Ubisoft, and King in driving regional supply chains. Reports from IPPR, Resolution Foundation, and Policy Exchange were cited alongside skills concerns highlighted by Creative Skillset and workforce studies by Institute for Public Policy Research.

The Deal set out commitments across finance, skills and trade, including capital pledges routed through British Business Bank, tax incentives like the Film Tax Relief and Video Games Tax Relief, and export support via Department for International Trade and partnerships with bodies such as UK Export Finance. Industry pledged investment from commercial partners such as Channel 4, Endemol Shine Group, Pinewood Studios Group, Aardman Animations, Bauer Media Group, and publishers like Penguin Random House and HarperCollins. Funding streams included matched funds managed with Arts Council England and grants administered by Creative England and the British Film Institute’s Lottery funding. Skills funding targeted apprenticeships overseen by Institute for Apprenticeships and Technical Education and research collaboration funded through UK Research and Innovation and university partners such as University of Westminster, Goldsmiths, University of London, University of the Arts London, University of Edinburgh, and University of Manchester.

Government agencies including Department for Digital, Culture, Media and Sport, Cabinet Office, HM Treasury, and Department for International Trade coordinated policy with industry-led bodies such as the Creative Industries Council and trade associations like British Film Producers Association, UK Screen Alliance, Pact (trade association), BPI, Association of Independent Music, and Society of Authors. Major broadcasters and studios — BBC Studios, Endeavor (company), HBO, Netflix — committed distribution and production support, while unions such as Equity (trade union), BECTU, and Musicians' Union represented workforce interests. Research partners including Digital Catapult, Tate Modern, V&A, British Library, and academic centres like Oxford Internet Institute and Goldsmiths Centre for Creative and Cultural Research participated in innovation and skills initiatives.

Reported outcomes included increased inward investment to facilities such as Pinewood Studios, expansion of post-production services in Shepperton Studios, growth in game development hubs in Newcastle upon Tyne and Brighton, and export deals negotiated at events like TEFAF and MIPCOM. The Deal coincided with higher uptake of apprenticeships in creative occupations via programmes run with City of Glasgow College and University of the Arts London, and increased research partnerships with Imperial College London and University College London. Sector analyses by ONS and trade bodies like UK Music and ScreenSkills reported employment and GVA gains, while festival circuits such as Sundance Film Festival, Cannes Film Festival, Edinburgh Festival Fringe, and South by Southwest saw enhanced UK representation. Intellectual property outcomes engaged institutions like UK Intellectual Property Office and international treaties including Berne Convention.

Critics from think tanks including Jubilee Debt Campaign and Tax Justice Network questioned public subsidy to large corporations such as Disney and Warner Bros., while sector commentators in The Guardian, Financial Times, The Times and The Economist argued about regional disparities between London and the Northern Powerhouse and Midlands Engine. Trade unions like BECTU raised concerns about precarious work patterns and freelance rights reflected in disputes involving companies like Pinewood Studios Group and disputes around productions for Netflix and Amazon Studios. Debates involved tax treatment controversies tied to Film Tax Relief and state aid considerations under World Trade Organization commitments. Academic critiques from Goldsmiths and SOAS highlighted diversity and inclusion gaps compared with pledges made to groups such as Creative Access and Diversity in Advertising.

Implementation mechanisms included oversight by the Creative Industries Council, delivery partnerships with UK Research and Innovation, and administrative roles performed by British Film Institute, Arts Council England, and regional agencies like Creative Scotland, Welsh Government, and Northern Ireland Executive. Governance frameworks drew on models from Local Enterprise Partnerships, coordination with Mayoral Combined Authorities such as the Greater London Authority, Greater Manchester Combined Authority, and West Midlands Combined Authority, and evaluation by the National Audit Office and House of Commons Digital, Culture, Media and Sport Committee. Ongoing monitoring engaged sector bodies including ScreenSkills, UK Screen Alliance, Creative England, and research institutes like Nesta and Centre for Cities.

Category:United Kingdom creative industries policy