Coronavirus threatens UK’S creative boom

Lockdown could put a stop to the industry’s rapid growth

THE UK'S creative industries have been booming over the last decade - but coronavirus has put the sector at serious risk.

New figures from the Office for National Statistics show that there were 297,500 businesses operating in the creative industries across the UK in 2019.

The number was up from 193,495 businesses in 2009 - an increase of 54% over the 10 years.

At the same time, employment in the sector increased by 31% from 1.0 million people to 1.3 million, and annual turnover was up 75% from £134 billion to £235 billion.

It means the creative industries have been growing at more than twice the average rate.

Across all industries, the number of businesses has increased by 26% between 2009 and 2019, employment by 11%, and turnover by 34%.

The boom has been driven by growth in IT software computer services in particular, which includes the publishing of computer games, as well as other software publishing, computer programming and consultancy.

That bubble could be set to burst, however, with the coronavirus pandemic and the resulting lockdown expected to have a serious impact on the creative industries.

Measures taken by the government to protect businesses include a £330bn loan fund, grants of up to £25,000 for the smallest leisure, hospitality and retail businesses, and the extension of 100% business rate relief to all businesses in these sectors, which includes many creative organisations and cultural spaces.

Meanwhile, workers can receive support through the job retention and self-employment income support schemes.

However, there are concerns that these measures will take too long to be accessed, and that some creative workers fall between these schemes, including those who commenced self employment after April 2019, recent graduates, those paid in dividends, temporary workers and those short term contractors normally paid by PAYE.

Caroline Norbury, CEO of the Creative Industries Federation, said: “Timing is the most critical thing at the moment.

“While there have been lots of measures put in place for businesses, employees and the self employed, in some instances this money will not be made available until June.

“The long and short of it is that they need this money now, and they can't wait another month.

“If support is not made available immediately lots of small businesses will go under in that time, and the self-employed will not have enough to cover their costs, let alone live on.

“We would also like to see more support for the many people in the creative industries who are falling through the cracks and are not eligible for any of these schemes.

“The creative industries are one of the things that the UK excels at globally. They are vital not just for the economy, but for our culture.

“For our sanity, our mental health and our sense of shared experience, we need to make sure this culture is protected and supported.

“The UK is a melting pot of voices and if you take that away what are you left with? If we don't have our culture, what is our country?”