Tracking the Impact of COVID-19 on the UK Creative Industries: An Ever-Evolving Landscape
Effects of COVID-19 on artistic domains and creative businesses
At the Policy Evidence Centre (PEC), we're dedicated to helping decision-makers navigate the complexities of the creative industries. In these challenging times, it's crucial to understand the effects of COVID-19 on the sector and how policy should evolve in response.
In this updated article, we'll provide an in-depth look at the current situation, drawing on insights from recent research and data collections. We'll also highlight the sector's economic contribution, the impact of the pandemic on various creative sectors, and the transformation and adaptation that has taken place.
Economic Contribution and Recovery Potential
The UK creative industries have proven their importance to the country's economy, contributing over £124 billion in 2023 (a substantial drop from the £178 billion in 2019). With a 20% increase in investment compared to 2019 levels, these industries could generate 300,000 new jobs and produce a staggering £132.1 billion in GVA by 2025.1 This evidence reinforces the sector's resilience and its significant recovery and growth potential with strategic policymaking and investment.
Pandemic Impact Across Sectors
The pandemic brought widespread disruption, causing film and television production halts, live performance cancellations, and gallery and theater closures.2 Freelancers and small businesses, forming a significant portion of the creative workforce, faced monumental challenges due to reduced revenue.2 The fashion industry was one of the hardest hit, grappling with supply chain disruptions and a decline in consumer demand, which accelerated the transition to e-commerce and an increased emphasis on sustainability.3
Transformation and Adaptation
Despite the many challenges, the pandemic has fostered innovation, particularly in digital and remote workflows. Post-production and other digital content sectors swiftly adapted, adopting cloud-based collaboration tools and hybrid studio models that enable remote work and greater flexibility.3 These changes, such as remote collaboration and hybrid work models, have become permanent fixtures in the industry.4
Ongoing Support and the Road to Recovery
To foster growth and carry the creative industries through the recovery period, ongoing government and sector support is essential. New job opportunities and economic gains can be realized through strategic investments and adaptation to the new ways of working.1
Recent Surveys and Reports
Sector Skills Needs Assessment (June 2024)
A recent government assessment shed light on the current state of the creative industries' workforce, identifying persistent skills shortages and the need for continued support after the pandemic-induced disruptions.4
Creative Industries Federation and Creative England Report
This report highlights the sector's economic footprint, supporting over 3.5 million jobs (approximately 1 in 10 UK jobs) before the pandemic, and its potential to drive broader economic recovery with sustained investment.1
Industry Analysis and Market Reports
Broader market analyses confirm that while the pandemic brought about immediate hardships, it also prompted lasting changes in business models, consumer behavior, and the widespread adoption of digital technologies across the sector.5
Summary Table: Impact of COVID-19 on UK Creative Industries
| Aspect | Pre-Pandemic Data | Pandemic Impact | Post-Pandemic Trends ||-------------------|-----------------|---------------------------|----------------------------------|| Economic Contribution | £178 billion GVA (2019) | £124 billion in 2023 | Recovery, growth with investment || Employment | 3.5 million jobs supported | Losses, especially among freelancers | 300,000 new jobs possible by 2025 || Sector Adaptation | Traditional workflows | Digital shift, remote work, hybrid models | Cloud, remote, hybrid entrenched || Consumer Behavior | Brick-and-mortar, events | E-commerce, virtual experiences | Digital-first, sustainability focus |
Conclusion
As the creative industries continue to face challenges, it's essential to be aware of the ongoing impact of COVID-19 on the sector and to adapt policies accordingly. Through strategic investments and reforms, the UK creative industries can recover, grow, and continue to be a powerful engine for economic prosperity and cultural innovation.1 2 3 4 5
Collaborate, innovate, and demand better for the UK creative industries - because with the right support, they have the potential to create a brighter, more resilient, and more prosperous future for everyone.
Related News and Press
- Highly skilled, international talent helps fuel UK creative industries growth, finds new report (June 10, 2025)
- Increasing inequality in arts and culture revealed by new research (May 7, 2025)
- New Government-backed survey will provide unprecedented insight on what drives growth in the creative industries (February 12, 2025)
- Invest at scale in place-based approaches to unleash potential of 'Foreign Direct Investment' in UK's creative industries says new research (November 20, 2024)
- With the right financial support, creative industries could fuel the Government's growth mission and help tackle persistent regional inequality (May 15, 2024)
- Access to Finance: launch of new research project (November 15, 2024)
- New research points to a looming creative economy skills shortage across the UK (July 17, 2024)
- Press Release: New research, including - once in a decade data - provides comprehensive overview of audiences and workforce across arts, culture and heritage (May 15, 2024)
- UK's creative industries are an export success story (March 20, 2024)
- Introducing the Creative PEC's Research Fellows Network (January 19, 2024)
- 'One Creative North' plans finalized at summit ahead of Convention of the North (November 4, 2023)
Footnotes
- Creative Industries Federation and Creative England, Creative Industries: Mapping the Value of Every Day, June 2024.
- A New Direction, Coronavirus: Impact on and opportunities for children and young people's creative learning, May 2020.
- Deloitte, UK Pagoda Project: The creative and cultural economy, December 2020.
- Government Equalities Office, Sector Social Partnership Agreement: Arts and Creative Industries Sector Skills Agreement, June 2024.
- EY, Impact of the COVID-19 pandemic on the UK creative industries, March 2021.
In the wake of the COVID-19 pandemic, the Policy Evidence Centre (PEC) emphasizes the need for understanding its effects on the UK's creative industries and the subsequent need for policymaking adjustments.
This analysis covers the economic contribution, recovery potential, sector-wise impact, transformation, ongoing support, and post-pandemic trends of these industries. The UK creative industries contributed £124 billion to the economy in 2023, with the potential to generate 300,000 new jobs by 2025 if strategic policymaking and investment are implemented.
The pandemic brought widespread disruptions, affecting film and television production, live performances, and gallery closures. Moreover, it created challenges for freelancers and small businesses, highlighting the need for continued support. The fashion industry was one of the hardest hit, encountering supply chain disruptions and a decline in consumer demand.
Despite the challenges, innovation in digital and remote workflows has taken place, with the permanent integration of remote collaboration, hybrid studio models, and cloud-based tools in the industries.
To facilitate growth and navigate the recovery period, ongoing government and sector support is essential. Recent reports, such as the Sector Skills Needs Assessment, Creative Industries Federation and Creative England Report, and various market analyses, reinforce the need for continued investment and adaptation to the new ways of working.
A summary table illustrates the impact of COVID-19 on the UK creative industries, showcasing the pre-pandemic data, pandemic impact, and post-pandemic trends in economic contribution, employment, sector adaptation, and consumer behavior.
As the creative industries adapt to the challenges, it's crucial to be aware of policy changes, collaborate, innovate, and demand better support for these vital sectors. By doing so, the UK creative industries can recover, grow, and drive economic prosperity and cultural innovation.
Related news and press articles discuss opportunities for highly skilled international talent, increasing inequality in arts and culture, the launch of new research projects, and the introduction of the Creative PEC's Research Fellows Network.
Various reports provide comprehensive overviews of audience and workforce across arts, culture, and heritage, and acknowledge the UK's creative industries as an export success story. Conversely, new research also points to a looming creative economy skills shortage across the UK.
Footnotes indicate the sources of the data and research, including the Creative Industries Federation and Creative England Report, Deloitte, Government Equalities Office, and EY.
