What 2022 may hold for the creative sector

Fireworks going off on New Year’s Eve

In recent months, the coronavirus pandemic has had a significant effect on the UK economy, with many businesses struggling to get by. Despite chancellor Rishi Sunak’s pledge of £1.59 billion to support companies in the creative sector, this hasn’t always been enough.

According to government figures, between Q4 of 2019 and Q2 of 2021, output in this sector declined by 27% in real terms. With many companies unable to work due to national lockdowns, or working with reduced efficiency due to social distancing restrictions, it’s easy to understand why.

However, while the sector has struggled in recent months, the outlook for 2022 looks bright. Read on to find out what the new year may bring for the creative sector.

The UK is in a strong position to deal with the Omicron variant

As you may have seen in the news, the UK is currently struggling with the rapid rise of the new Omicron variant of the coronavirus. According to the BBC, the UK has recently reported the highest number of confirmed cases since the pandemic began.

As a result, the prime minister has announced new restrictions, including the use of vaccination passports and the reintroduction of compulsory face masks in some settings. The government hopes that these measures will slow the spread of the virus and prevent the NHS from getting overwhelmed.

However, while many businesses fear the return of a further lockdown and stricter distancing restrictions, there is no guarantee that this wave will cause the same problems as the previous ones. One of the main reasons is that a large portion of the population is now fully vaccinated, with the most vulnerable now receiving booster shots.

With so many of the British public having some form of protection against the virus, there may not be a need to return to the restrictions that made life so difficult for many businesses in previous months.

A recent government survey shows strong international demand for British media

One reason to be hopeful for the future is a recent government poll that shows a strong international appetite for UK media. The survey by the Department for Digital, Culture, Media and Sport found that 70% of global audiences consider “Britishness” to be a mark of high quality.

As many businesses in the creative sector struggle to get back on their feet after the recent economic disruptions, it’s heartening to see that there is still a strong appetite for British productions.

Julia Lopez, minister for the creative industries, welcomes the news, saying that “the UK independent production industry is world-leading, consistently serving up innovative, creative and inspirational content for big and small screens that wow audiences across the globe”.

As we discussed in our previous blog about the new normal for the film industry, the pandemic certainly hasn’t dampened people’s appetites for new movies. Once the UK finally overcomes the pandemic, the nation’s film industry may enjoy strong growth in coming years.

A new tech start-up hopes to encourage British musicians

In encouraging news for the UK music industry, Sir Paul McCartney has announced his support for Audoo, a new tech start-up who plan to revolutionise the royalty payment system for musicians.

The start-up’s founder, Ryan Edwards, was quoted in the Times as saying that, under the current system “hundreds of millions are paid out on estimations”. While this benefits popular artists, it can also marginalise smaller musicians who are trying to break into the industry.

As you might imagine, under the current system it can be difficult for someone to make a living from their music if they aren’t already well known. Edwards hopes that Audoo will change that, helping artists to get the fair compensation what they deserve.

If the start-up does manage to make a change in the music industry, it could be good news for many of the UK’s smaller artists. The innovation brought about by Audoo would help to encourage British talent and boost the wellbeing of this important part of the creative sector.

There is strong demand for staff in many businesses

In recent months, the pandemic has shaken the confidence of many business owners in the creative sector, and it’s not hard to see why. Between reduced consumer spending and government restrictions affecting their productivity, many companies have been struggling financially.

However, recent figures from the Recruitment and Employment Confederation show that demand for both short- and medium-term staff has remained high. This is a good sign that many businesses have confidence for the future, despite their difficulties in recent months.

While the creative sector may have struggled since the beginning of the pandemic back in 2020, there are many signs that the industry’s future looks bright.

Get in touch

Whatever the future may bring, knowing that you have the right cover in place can give you confidence when growing your business. If you want to protect yourself and your company, we can help. Email or use our contact form to request a call back from our team.

Posted: December 20, 2021 | Categories: News

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