Caroline Norbury OBE has welcomed the re-election of Dame Caroline Dinenage MP as the Chair of the UK House of Common’s Culture, Media, and Sport Select Committee, urging immediate action to address the opportunity for the UK’s Cultural and Creative Industries to drive inclusive growth.
As the sector continues to outperform the wider economy – contributing £125 billion annually – Norbury called for a renewed focus on reforming the financial and funding structures that underpin its success.
Commenting on the appointment, Norbury said: “The new Select Committee Chair has a critical opportunity to champion one of the UK’s most dynamic sectors.
Creative businesses and organisations are driving innovation and economic growth, yet they remain constrained by financial and funding systems that frequently fail to address their growth potential. Too often, the arts and culture are seen as a cost to cut, rather than a sensible investment in a sustainable future. We urge Parliament to focus on finding ways to unlock the full potential of the creative industries to drive inclusive growth.”
Driving financial innovation through research
Creative UK is currently leading research on access to finance for SME size organisations in the creative sector. This comprehensive study, which is already underway, aims to uncover the financial barriers that creative organisations face – particularly around investment access.
“Our research – Access to Finance – has been initiated because of the scale of challenge we hear across the UK about organisations wanting to grow yet unable to secure capital – this is the financial realities of creative businesses, from fast-growing SMEs to cultural organisations,” said Norbury.
“This work will directly inform public debate about what the UK Government can and needs to do in development the next phase of financial support mechanisms, including the concept of a ‘Bank of Creativity’ – a dedicated financial solution designed to provide the stability and flexibility that creative businesses need to flourish.”
The case for bold financial reform: a ‘Bank of Creativity’
Creative businesses and organisations frequently face unique financial challenges, particularly the irregular nature of revenue flows, which make traditional financing unsuitable. This, combined with myths about the nature of risk private investors, limits growth and investment, despite the sector’s proven economic strength and ambition to do even more.
“The creative sector doesn’t fit the mould of many other industries, so the solutions put in place to drive inclusive growth must be just as innovative as the creative sector is,” Norbury said. “A ‘Bank of Creativity’ would provide a dedicated financial model, designed to smooth out the challenges of fluctuating revenues and provide the right products to unlock growth.”
