In political terms, it feels like a long time ago but back in March 2024, the Labour Party (then in opposition) acknowledged that the UK is home to a world-leading creative industry which not only delivers substantial economic dividends but deeply enriches the lives of communities in a way that is unrivalled by other priority sectors. In anticipation of election, the Labour Party’s manifesto committed to “fire up the engines of our creative economy” by backing the sector to deliver more growth and investment to every part of the country.
Following this, the newly elected Government went on to announce in June 2025 a new UK Modern Industrial Strategy which named the creative industries as one of the eight targeted growth sectors which had the highest potential to increase and strengthen the UK economy.
Supporting the Modern Industrial Strategy, the Government published its Sector Plan for cultural and creative industries in July 2025. This captured the economic importance of culture and creative industries and their unique potential whilst outlining the Government’s ambitions for the sector. These well-founded ambitions included:
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Increasing business investment in the sector from £17bn to £31bn by 2035.
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Maintaining the UK as one of the best of many global places of to make and invest in performing and creative arts, film and tv, video games, music and associated services (such as advertising).
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Build on the existence of Creative Clusters in high-potential city regions by investing in economically productive assets, R&D and public-private partnerships.
The rationale for investment in arts, culture and the creative sector is extensively documented elsewhere so the strategic and economic case for investment is indisputable - The place and people-making power of culture.
In last week’s 2025 Autumn Budget, the Chancellor was light on committing to investment in the creative industries which flies in the face of the Government’s well-wishing intentions implied in its Sector Plan. Despite this, the Budget did include some noteworthy commitments which could help stimulate businesses and place-based investment in the sector. These include:
A focus on growth in a diminishing funding context
Whilst these policy commitments and funding reforms are welcome, they follow in the steps of successive decline in Government funding and support for the sector. To illustrate this - over the past 15 years, the sector has seen:
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A reduction in local government spending by nearly 50% dropping from £88 to £46 per person.[5]
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Greater disparity in cultural funding depending on where people live with residents in Manchester receiving £26.28 per person whilst residents in Birmingham receive £7.63 and Gateshead receive £6.25. This highlights the potential disparities in support and access to arts and culture.
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A decline in DCMS Core Funding which has reduced by around 18% between 2010 and 2023 when adjusted for inflation. In 2022/23, core funding totalled £21.93 or just 0.17% of total public spending per person in the UK. The 2025 spending review resulted a 1.4% reduction in real-term departmental expenditure funding over 2025–2029.
[7] This includes a 1.2% cut in resource spending and 2.8% cut in capital spending.
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A modest boost but nothing close to reversing deep-rooted, historic under-investment. Whilst a £270 million package for museums, galleries, venue repairs, and arts education was announced in February 2025
[9], many cultural assets face uncertain futures and rising costs associated with essential repairs, maintenance and improve. Indeed, whilst we explore the enormous potential of growing our cultural and creative sector, the harsh reality is that many of our most successful, existing assets are in critical need for fresh investment just to keep them operating let alone expand (taking Millenium projects as an example, this is explored separately by Lichfields -
Safeguarding the cultural legacy of the Millenium Commission.
These alarming facts indicate a sustained erosion of core public funding directed to the arts, culture and creative sector over the last 15 years, irrespective of emergency interventions and periodic boosts. Whilst the recent influx of one-off or short-term funding announcements in 2024/25, such as the £270 million repairs package or Local Growth Fund, offers welcome support and temporary breathing space, this is insufficient to reverse the deeper structural declines in investment seen since 2009/10. Long-term recovery and a boost to one of the Government’s priority sectors depends on sustained reinvestment in existing assets as well as fresh investment in new, economically productive and socially enhancing assets.
In the harsh reality of scarce public funding which many might say is unlikely to change in the years to come despite Government rhetoric, the cultural and creative industries sector needs to explore alternative sources of funding and investment. Lichfields experience of working closely with cultural, arts, music and heritage organisations has helped us understand and demonstrate, not only the substantial economic contribution the sector makes to the economy, but the deep impact made to communities, places and individuals. Our experience of working with the sector makes it is clear to see that the leaders, organisations and people behind culture are unmistakably driven and committed to the growth of communities, the places they live and the economy alike. The Government has its job to do albeit within ‘fiscal headroom’ – the private sector in its many shapes and sizes really can step in, influence, share and make the difference.
This blog is a call to arms to Government in opening up new funding opportunities in tandem with the private sector to share in and reap the rewards of investment in arts, culture and music.
Footnotes
