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London’s creative industries provides £40bn spending boost to economy: new report

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LONDON, ENGLAND - OCTOBER 09: Ahead of the Global Fund Replenishment on October 10th 2019, PAINT (RED) SAVE LIVES - the first global street art campaign to end AIDS - has seen leading street artists create (RED) murals in cities around the World. To raise awareness of the AIDS fight, (RED) art by Shepard Fairey, Karabo Poppy, WK Interact, Add Fuel and HOW & NOSM was projected on to The National Theatre on October 9, 2019 in London, England. (Photo by Antony Jones/Getty Images for (RED))

London’s creative industry sector adds £40bn a year to its various supply chains, according to a new report.

Previous figures from the Department for Digital, Culture, Media and Sport indicated that creative industries boosted London’s economy by £52bn.

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However, a new report – commissioned by mayor of London Sadiq Khan – shows the sector’s supply chain spending is also helping a range of other industries.

The report finds the sector collectively injects £40bn into its supply chains, which then in turn has a multiplier effect on other UK businesses.

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.”

Employment in the creative industries is growing four times the rate of other areas of the economy, according to the study.

It also suggests that 0.75 jobs are created across the “creative supply chain” for every one job added in the creative industry.

Alistair Spalding, artistic director and chief executive of Sadler’s Wells Theatre, said the report was evidence of how important public arts funding is.

“Supporting publicly-funded organisations, creative businesses and freelancers working closely across supply chains, as we inherently do, is crucial,” he said.

“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.”

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The study was created as part of the Mayor’s Cultural Infrastructure Plan and involved eight different case studies.

The company’s examined include the National Theatre, Sadler’s Wells Theatre and technical consultancy firm Mesmer.