A milestone

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

Creative PEC Director Hasan Bakhshi, who is also Professor of Economics in Newcastle University’s Business School, explains why this matters:

“The UK's system of tax reliefs to incentivise business investment in R&D are targeted on activities 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, discouraging Creative Industries businesses from applying.
 
“This fails to recognise the critical role artists play in addressing scientific and technological uncertainties in 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, bringing the UK more in line with international practice. It is 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 also saw the launch of the UKRI R&D Strategy for the creative and cultural economy, and Creative PEC also published an Insight Paper on createch, by Dr Emily Hopkins and Bernard Hay, supporting the argument for better recognition for creatives in this area.

Bernard Hay, who is Creative PEC’s Head of Policy, 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, developing 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) led by Newcastle University with The RSA (The royal society for arts, manufactures and commerce)