New report reveals multi-billion impact of London’s creative industries on the wider economy

New report reveals multi-billion impact of London’s creative industries on the wider economy

  • London’s creative industries boost the capital’s economy by spending £40bn per year within their supply chain
  • Every job in London’s creative industries supports an additional 0.75 of a job in the wider economy
  • Mayor calls on Government to ensure the creative industries are a key part of its industrial strategy


A new study has revealed the success of London’s creative industries is helping to further boost the economy by spending £40bn per year within their supply chain.    The Mayor of London, Sadiq Khan, has called on the Government to support the capital’s creative industries and ensure they play a key role in delivering the country’s industrial strategy.  The creative industries are known to boost London’s economy by £52bn, but a new study commissioned by City Hall has shown that the capital’s creative sector spends an estimated £40bn within their London supply chain – boosting a wide range of other sectors.

The Creative Supply Chains Study found that about half of this supply chain spending is in other sectors, with education, architectural and engineering, computing, employment and financial services among those benefiting from the success of the creative industries.

London’s creative sector is also boosting business across the UK, with case studies of eight London-based organisations showing that 40 per cent of their suppliers are located outside of London.

The study was created as part of the Mayor’s Cultural Infrastructure Plan, a world-first approach designed to analyse what needs to be done to protect and grow the capital’s cultural facilities.

Employment in the creative industries is growing four times the rate of other areas of the economy, and the study found that every job in London’s creative industries supports an additional 0.75 of a job across the supply chain. In total, 267,500 people are working in London’s creative industries, with 203,200 in creative supply chain employment – more than in the legal and accounting sectors combined.

However, there is great pressure on the industrial premises where much of the city’s creative production happens, with availability declining. The Mayor is calling on the Government to support the industries to help increase production capacity and ensure the capital’s status as a global leader for creativity and the cultural industries.

The new study highlights the importance of providing affordable workspace and ensuring businesses can work together in clusters, which is why the Mayor is creating six Creative Enterprise Zones across the capital to help create jobs, training opportunities and affordable workspace across the city. Sadiq also helped to launch the Creative Land Trust, an independent organisation which will secure 1,000 affordable creative workspaces in five years for artists in the capital.

The Mayor of London, Sadiq Khan, said: “London is the cultural and creative capital of the world, generating jobs and opportunities for thousands of Londoners, boosting our economy and making the city a desirable place to live, work and visit. It’s also the case that London’s creative industries drive jobs and growth across a whole range of other sectors and across the whole country. That’s why’s it’s vital that we support the sector to grow and develop and it’s why I’ve introduced a range of policies to support these industries including Creative Enterprise Zones to help them flourish. And given the national and international significance of the sector, it is why I’m calling on the Government to put creative industries front and centre of their industrial strategy for the country.”

Deputy Mayor for Culture and the Creative Industries, Justine Simons OBE, said: “We know that the creative industries generate billions for London in their own right, but what this report shows today is the significant impact they are having across other parts of the economy. From designers needing accountants to film studios needing carpenters, the impact of our creative industries is far reaching, helping people and businesses across the capital and the UK.”

Alistair Spalding, Artistic Director and Chief Executive of Sadler’s Wells, said: “This report highlights the creative industries’ significant role as a driver of business for other sectors in London, across the country and beyond. Supporting publicly-funded organisations, creative businesses and freelancers working closely across supply chains, as we inherently do, is crucial not only to ensure the social and economic success of the creative sector, but also to stimulate and support the growth of the UK’s wider economy.”

Lucien Mansell, director of Factory Settings, said: “As a cultural, as well as commercial organisation, we feel it is vital for us to maintain our presence in London. Our integration with specialist subcontractor networks and other creative companies wouldn’t be possible if we weren’t in London, not to mention the considerable technical and creative talents that our locally-based workforce bring in to the business. Our proximity to such a wealth of cultural resource and grassroots creative development allows us to bring much more depth to our work, and in turn to disseminate the benefits back into the local community. We are proud to be Londoners and play our part in driving the creative industries.”

Download the Creative Supply Chains Studie