Three big challenges faced by the creative industries in 2020

The creative sector in Britain is thriving. As well as shaping the UK’s history and culture, the industry has an economic significance that shouldn’t go unnoticed. Contributing £100bn to Britain’s economy, the industry is outpacing the general economy.Further growth is expected, with 1 million more jobs anticipated by 2030.

This said, the industry is still set to face some big challenges with the turn of the decade...

Funding

The creative sector often struggles to access funding and it's not uncommon to see organisations so under-capitalised that they have to make significant cuts. As a result, organisations regularly miss out on opportunities to explore new projects or take those all important creative risks.

There are some early-stage ideas in place to try and address this issue. The most recent of which are outlined in the Creative Industries Manifesto, which proposes a cut in business rates for cultural, music and heritage spaces. The manifesto also hopes to implement a £1bn investment bank, offering valuable financial support to regions which need the most help.

Another initiative which is being under utilised by many is the Creative Industries Tax Relief. The relief offers 8 different sectors relief on qualifying expenditure, which can then be reinvested into the project. The relief cover numerous creative sectors such as museums and galleries, theatre, film, and video games.

Both of these initiatives are great starting points, but there is undoubtedly more that needs to be done to address the issue of finance and funding in the creative industries in 2020.

Skills shortage

At the turn of the year, the industry also remains in the midst of a skills shortage, despite an abundance of talent across the UK. Developing and retaining UK-based skill will be a predominant challenge in the upcoming year.

Accordingly, it’s important that we continue to nurture creative talent from a young age. By integrating creativity into the school curriculum, and ensuring that all students have the opportunity to pursue a career in the field, the skillset within the industry will hopefully expand in years to come.

Retaining talent within the UK will be a rife challenge in 2020. As Brexit is still impending, the government need to match the funding that currently comes from the EU, in order to uphold Britain’s position, at the forefront of creativity.

If the shortage of skills isn’t addressed soon, the problem is likely to get worse. Ultimately meaning that the sector will become less diverse, and the amount of British creative exports would dramatically decline.

Innovation

£46bn of UK exports come from the creative industry, so maintaining creative innovation within Britain is vital to say the least.

Again, there are already initiatives in place to encourage creative innovation. Two that sit hand in hand, are Research and Development Tax Relief, and the Patent Box. Both incentives allow businesses to claim corporation tax benefits for qualifying expenditure. One of the requirements for eligibility for R&D tax relief, is the ability to show that the business is innovating, something which you might not stereotypically associate with the creative industry. However, many working within the sector are overcoming technological challenges and uncertainties on a daily basis, and could potentially benefit from the relief.

Much like the challenges surrounding skills, the issue of encouraging innovation in the UK creative industries, will more than likely continue into the new decade - making it more and more important for creative businesses to take advantages of initiatives that are already in place.

How can we help?

Our team support countless businesses and organisations in the creative sector, and we can advise you on anything from finance and funding to tax relief. Get in touch to see how we can help you thrive in 2020.