The Creative Industries Policy and Evidence Centre (Creative PEC) has been working with HM Revenue and Customs to write new guidance on R&D tax relief. This is part of a package of measures introduced by the Department for Culture, Media and Sport and UK Research and Innovation (UKRI). Thousands of businesses are set to benefit.

Creative PEC Director Hasan Bakhshi explained why this matters:

“The UK's system of tax reliefs to incentivise business investment in R&D are targeted on activities that are geared at resolving uncertainties of a scientific or technological nature. For this reason, it's widely believed that the work of artists involved in R&D is out of scope. This discourages Creative Industries businesses from applying.

“It fails to recognise the critical role that artists play in addressing scientific and technological uncertainties. (They impact) areas like immersive technology, video games and visual effects that are at the cutting edge of technology use.

"This clarification that such arts activities can be central to scientific or technological R&D projects is a critical milestone for the Creative Industries. It brings the UK more in line with international practice. It's also a milestone for the Creative PEC, which has been calling for better acknowledgement of Arts R&D for many years.”

Further evidence

This week saw the launch of the UKRI R&D Strategy for the creative and cultural economy.

Creative PEC also published an Insight Paper on createch by Dr Emily Hopkins and Head of Policy Bernard Hay. This supports the argument for better recognition for creatives in this area.

Bernard Hay says: "These announcements mark a welcome boost in strategic investment and support for creative industries R&D. Our research consistently shows the importance of such investments, not least for the rapidly growing area of ‘createch’.

"The creative industries are an R&D and innovation intensive part of the economy. They develop new products, services and experiences in areas ranging from fashion and design to immersive tech and gallery experiences.

"We look forward to continuing to work with the government and industry to support the implementation of DCMS's Sector Plan."

Creative PEC is funded by the Arts and Humanities Research Council (AHRC).

It is led by Newcastle University with the Royal Society for the Encouragement of Arts, Manufactures and Commerce (RSA).