A pivotal moment for the creative economy

With four weeks to go before the Autumn Budget, all eyes are on Chancellor Rachel Reeves and how she plans to deliver Labour’s growth agenda. Few sectors embody the UK’s economic and cultural dynamism as powerfully as the creative industries – from film and design to gaming, publishing, and digital media. According to the Government’s own figures, the sector contributed around £124 billion to the economy in 2023, making it one of the UK’s fastest-growing areas.

Yet, behind this headline success lies a structural vulnerability: much of the industry’s talent base consists of freelancers and small independents who often lack financial stability between contracts.

Mandy Girder, Partner, explains:

The UK’s creative industry is an important part of the UK’s economy. The Government’s own statistics show that the UK’s creative industry contributed around £124 billion to the economy in 2023. But to achieve Labour’s growth agenda, there needs to be more targeted support for freelancers in the media industry.

Policy context: A workforce built on flexibility – but at a cost

The UK’s creative success is built on flexibility, innovation, and self-employment. Around one-third of the creative workforce is freelance, yet many operate without predictable income, savings cushions, or fair payment terms. As the cost of living remains high and project-based work fluctuates, the financial risks of creative freelancing have grown.

When they are between contracts or awaiting payment, money can be short. An emergency support fund they can access to keep them afloat in those circumstances would be very welcome. Beyond emergency support, prevention is key.

However, preventing these cashflow issues in the first place would go a long way. The government should legislate creative industry specific prompt payment rules, so clients pay freelancers within a reasonable timescale. Similar rules already exist to ensure Government departments promptly pay their suppliers.

This proposal mirrors successful initiatives in other sectors, where prompt payment standards have improved liquidity and trust. Extending these protections to creative professionals could make a tangible difference to thousands of small operators who currently face late payments as a norm rather than an exception.

Practical support: Reliefs, grants, and regional action

Freelancers should also get tax relief, similar to the ones they received during covid. This would help small but established freelancers with their work-related expenses. This should be coupled with increased or more permanent creative reliefs.

The Government should offer start up grants for those early in their careers to help them to break into the industry. Some young people, after spending years in university and honing their skills, find getting into employment very difficult. A start up grant would help them bridge the gap while they find work.

Mandy highlights the importance of regional support:

More should be done to encourage local regions to create specific funds and support for freelancers in their area. The West Midlands, North East and Wales have specific freelancer funds, but more areas need to do this. They should also increase the budget for the Global Screen Fund.

The human impact: Creativity under pressure

For many freelancers, late payment is more than an inconvenience – it threatens their ability to sustain a career.

Neil Kerber, a freelance award-winning cartoonist, illustrates the reality:

It would be very helpful if a freelancer such as me could be paid quickly or at least on time, rather than finding out weeks down the line that my invoice still needs to be authorised, then approved, then forgotten about for eight more weeks until someone can be bothered to put it through.

He adds:

I once waited five months for quite a significant invoice to be paid, only to find out that I then needed a Purchase Order first, leading to even further delays. Prompt payment rules would encourage businesses to handle invoices efficiently, and give creatives much needed back up when they do need to chase for overdue payment.

These experiences underline how vital structural change is – not just to individual livelihoods, but to the long-term competitiveness of Britain’s creative sector.

Why it matters to business and the economy

Supporting freelancers isn’t only a matter of fairness – it’s smart economics. Freelancers and small creative enterprises supply vital innovation and content to larger organisations, including broadcasters, tech firms, and marketing agencies. By improving payment practices and targeted reliefs, the Government would help stabilise the supply chain that underpins a £124 billion industry.

What businesses and individuals should consider next

For businesses:

Review payment practices and consider adopting prompt-payment commitments voluntarily.

Recognise the value of creative freelancers as strategic partners, not just cost centres.

Engage early with industry consultations ahead of the Budget to influence policy direction.

For freelancers and creative professionals:

Track and document late payments to build evidence for potential policy submissions.

Explore existing regional funds or grants, especially in areas like the West Midlands and Wales.

Seek professional tax and business advice to prepare for possible reliefs or grant opportunities following the Budget.

Would you like to know more?

If you have any questions, please get it touch with your usual Blick Rothenberg contact or Mandy using the form below.