Creative Industries Minister Ian Murray has highlighted the UK Government’s expanded commitment to the creative economy during a visit to Liverpool—widely recognised as the region with the most UK number‑one records and home to more than 1,400 music businesses. The Minister set out a substantial new package of funding designed to strengthen creative industry clusters in every nation and region.
Liverpool City Region secured almost £7 million in 2024 as the UK’s leading music innovation and technology cluster, reinforcing its reputation as one of the world’s most influential music hubs.
Now, as part of the next phase of the Industrial Strategy’s Creative Industries Sector Plan, the UK Government is inviting regions across the country to bid for a further £27 million to develop their own centres of creative excellence. The funding aims to support growth in sectors such as film, TV, gaming, fashion, music and digital content—while deepening collaboration between creative businesses, academic institutions and local authorities.
Ian Murray, Creative Industries Minister, said:
“We’ve seen the transformative impact that government investment has had on Liverpool City Region’s music industry, helping innovative projects like MusicFutures flourish.”
“In our Industrial Strategy, we committed to driving growth and building on the regional clusters of creativity that exist across the UK.”
“I am pleased to launch the search for the next hotbeds of creative excellence to support. As part of a record settlement of research and development funding over the next three years and beyond, we are going to help artists, entrepreneurs and businesses up and down the country innovate with new technologies, attract investment and nurture talent.”
This announcement forms part of a record government investment of at least £500 million in research and development, reinforcing the UK’s position as a global leader in creative innovation.
Breakdown of the Creative Industries Funding Package
- £369 million allocated to the creative industries via UKRI during the Spending Review period, including £100 million for innovative companies.
- £25 million approved at the 2025 Spending Review for the DCMS Createch Futures programme.
- £155 million to support creative economy infrastructure through the DiSCCO programme, digitising the UK’s vast natural science collections.
- Investment in the Creative Content Exchange, a future digital marketplace designed to support creators and cultural institutions.
Thousands of creative organisations are expected to benefit from updated HMRC research and development tax relief guidance, developed with input from the Creative Industries Policy and Evidence Centre. The revised guidance clarifies when creative businesses can claim R&D support for interdisciplinary innovation—an increasingly common feature of digital, tech‑enabled creative work.
UKRI has also published its new R&D Strategy for the Creative and Cultural Economy, which will guide how public and private investment is directed to accelerate growth, international trade, innovation and skills across the sector.
Professor Christopher Smith, UKRI sector champion for the creative industries and Executive Chair of the Arts and Humanities Research Council, said:
“UKRI has confirmed a record investment in the creative industries because they are vital to the UK’s prosperity and to driving economic growth through the industrial strategy. But for that scale of investment to deliver maximum benefit, we need to ensure it is used wisely and strategically.
That’s why we are today launching our R&D Strategy for the Creative and Cultural Economy. It will focus on making the most of our world class CoSTAR Network and Creative Industries Clusters, and scaling and growing the businesses, talent, skills, policy and evidence we need to supercharge the sector.
This strategy lays out the most connected and coherent investment we have ever made in the sector, building on past success, and will help us keep the creative and cultural sector at the heart of the UK economy.”
Spotlight on Liverpool: MusicFutures Leading Innovation
During his visit, Minister Murray attended a MusicFutures event at the ACC Liverpool. MusicFutures is a government‑funded collaboration between the University of Liverpool, Liverpool John Moores University and the Liverpool City Region Combined Authority.
Steve Rotheram, Mayor of the Liverpool City Region, said:
“Music has always been a huge part of our area’s identity, we’re bursting with talent - which is why we invested £2 million in the Liverpool City Region Music Board. What we’re now seeing is what’s possible when government backs that creativity with real ambition.
MusicFutures shows how we can build a more equitable, sustainable and innovative music industry – one where artists feel valued, cutting-edge technology like AI creates opportunities for the next generation, and our region continues to lead on the global stage.
We’ve given the world a new soundtrack once before – and with MusicFutures, we have all the talent, ambition and drive to do it again.”
Next Round of Creative Cluster Funding Opens
The MusicFutures cluster is part of the AHRC’s Creative Clusters Programme, which links universities with creative businesses to drive innovation, research, job creation and inclusive economic growth. The first round generated £270 million in public and private investment from an initial £56 million government contribution.
Applications are now open for the next cohort of Creative Clusters. More than £27 million will be allocated, with individual awards up to almost £7 million.
Additional Investment for Liverpool City Region
Liverpool City Region has also been awarded £25 million through the Creative Places Growth Fund. This new devolved funding model supports growth‑ready Mayoral Strategic Authorities, helping them scale local strengths in areas including:
- games development
- film production
- music technology
- creative services
This expanded package demonstrates deepening collaboration between government and industry via the Creative Industries Council, Creative Industries Taskforce and the Creative Industries Policy and Evidence Centre.
Image credit: iStock
