Major DCMS-backed initiative to boost sector profitability to launch

A ‘groundbreaking’ three-year initiative to enhance the profitability and sustainability of organisations across arts, culture and the creative industries is to launch, the government has announced.

It is hoped that the Creative Business Panel, a partnership between the Department for Business and Trade, the Creative PEC and the CoStar Foresight Lab, supported by the Department for Culture Media and Sport (DCMS) will help “drive forward improvements and see the industry thrive”.

A major survey of organisations, covering all UK regions and creative industries sub-sectors – including music, museums, galleries and libraries, and performing and visual arts – will take place looking at business models, finances and investment to inform future government policy.

“The Creative Business Panel will meticulously track the behaviours, performance and experiences of creative industries businesses to create an evidence base which will inform successful strategies, government policies and decisions for the future,” a website for the initiative states.

“It will influence decisions to support businesses adopt digital innovations, enhance their competitiveness, foster diverse and inclusive workforces, and drive profitability and sustainability.

“For the first time, the sector will have a thorough picture of creative businesses as a whole, uniting efforts to drive forward improvements and see the industry thrive.”

‘Unprecedented insight’

Although yet to officially launch, details of the initiative were announced in parliament by business minister Sarah Jones in response to a question from culture select committee chair Caroline Dinenage.

Dinenage asked what plans government has to increase the evidence base on the impacts of merger and acquisition-led foreign direct investment projects in the creative industries.

“A new partnership will be announced shortly between [the Department for Business and Trade], the Creative PEC and the CoStar Foresight Lab, supported by DCMS,” Jones said.

“The Creative Business Panel is a longitudinal study which will involve five waves of in-depth industry research, running to 2028.

“It will provide unprecedented insight into what drives growth in the sector, and crucially it will be able to determine for the first time how potential growth factors, including [mergers and acquisitions], interrelate.”

Financial pressures

The move comes amid ongoing financial pressures on organisations across the arts and culture sector.

An investigation conducted last year by Arts Professional and financial benchmarking company MyCake found that the finances of arts and culture organisations in the UK are in their worst state than at any time in the past five years.

Analysis of a constant cohort of 2,800 organisations across the country that filed accounts for every year since 2018 shows they posted a combined deficit of £117.8m in 2023.

In November Arts Council England revealed it is exploring ‘radical’ new business models for arts organisations as they struggle in the face of financial pressures.

The same month former arts minister Ed Vaizey said it is time for arts and culture organisations to embrace “innovation” and “even mergers” to ensure their sustainability.