Creative Industries at a Crossroads: Reflections from the UK Arts and Creative Industries Conference
By Professor Susan Postlethwaite
I attended the UK Arts and Creative Industries Conference on 6 May, chaired by Professor Sara Pepper OBE, Co-Director of the Centre for the Creative Economy at Cardiff University and Innovation and R&D Working Group Chair of the Creative Industries Council. The keynote address was delivered by Caroline Dinenage DBE MP, Chair of the Culture, Media and Sport Select Committee.
It was challenging to remain positive, as it was strongly suggested that key details are missing from the Creative Industries Sector Plan and that funding mechanisms are too slow. The UK appears to be in a worse position than before the plan was announced. Finances are fragile, with a £2 billion funding gap identified. There was general agreement that place-based funding and devolution plans should be driven by mayoral authorities. Freelancers were highlighted as needing additional support. A proposed Freelancer’s Commissioner was rejected by the government, with a Freelance Champion suggested instead; however, no appointment has yet been made.
Skills and training needs were also emphasised. AI is widely seen as an existential risk to the Creative Industries sector. The AI consultation is still ongoing, and while technology continues to advance, government action appears stagnant. There were concerns that US AI companies are being favoured over protections for UK firms.
The chair also hosted a session with Baroness Shriti Vadera, Industry Co-Chair of the Creative Industries Council, who stated that the Creative Industries are the third fastest-growing sector in the UK. While economically powerful, she argued that the sector lacks strong leadership. According to Vadera, manufacturing is prioritised over the arts. She questioned why fintech is recognised while “createch” is not. In her view, the Industrial Strategy is not working. She also noted that the UK is among the fastest adopters of AI (at this point, the PEC skills audit had not yet been published). She suggested that China’s approach to adapting to AI sector needs could be adopted or adapted in the UK. Baroness Vadera will step down from her role in December 2026 at the end of her term.
Baroness Margaret Hodge DBE, Lead Author of the Independent Review of Arts Council England, spoke in conversation with Professor Justin Lewis, Director of Media Cymru.
Baroness Hodge described a difficult funding environment and suggested there is a loss of confidence in Arts Council England, which is perceived as overbearing. She noted that the government has accepted all the recommendations of her independent review, raising the question: what happens next?
A particularly notable session was “Unlocking Investment for Innovation and Growth,” chaired by Roderick Beer, Managing Director of the UK Business Angels Association. The panel featured Professor Christopher Smith, Executive Chair of the Arts and Humanities Research Council (AHRC), and Bernard Hay, Policy Director at the Creative Industries Policy and Evidence Centre (PEC).
The panel suggested that government approaches are unstrategic, with broken funding pipelines. The Industrial Strategy was described as a limiting factor, with calls for a revision of funding systems. The UK was said to need a clear investment roadmap, better coordination of finance, and improved understanding among investors of how to support micro-businesses. It was confirmed that the Policy and Evidence Centre will continue to receive funding from UKRI; however, a sustainable business case for UKRI is due in 2027, and a perceived lack of evidence remains an issue. Devolution, alongside the development of creative corridors into larger-scale clusters, was suggested as a potential solution. The need for further investment in the UK’s soft power was also emphasised.

Susan Postlethwaite is Professor of Fashion Technologies at the Manchester Fashion Institute and MetroPolis Chancellor’s Fellow.