UK government to invest in film and TV AI special-effects research | Business

Ministers are seeking to future-proof the UK’s multibillion-pound film and TV production industry by investing almost £150m in a network of research labs across the country tasked with developing the next generation of special effects using tech such as artificial intelligence.

The scheme aims to build on Britain’s reputation for producing hi-tech hits from Star Wars to Harry Potter, and is part of wide-ranging plans to drive the UK creative economy. The government has earmarked millions to support grassroots music venues hammered by the Covid pandemic, and is tripling a fund designed to find and support the next generation of homegrown superstars like Adele and Ed Sheeran.

The funding will be spread among hundreds of venues, new video games studios, fashion, film and other creative ventures. Four new research and development labs focusing on visual effects, motion-capture technology and AI will be supported with an additional £63m investment from industry.

There will also be significant investment to nurture up-and-coming video games developers and backing to ensure the annual London fashion week and BFI film festival continue to thrive.

“Our creative industry isn’t just about the glitz and glam of the red carpet in Leicester Square,” said Jeremy Hunt, the chancellor. “It brings in £108bn a year to help fund our public services, supports over 2 million jobs, and is world renowned.

“We are backing it as an industry to drive our economic growth, keeping the UK at the top of the world’s cultural charts with a multimillion-pound boost.”

The government, which has set a target of growing the scale of the UK creative industries by £50bn and create 1 million extra jobs by 2030, revealed the preferred locations chosen after a bidding process for its network of four research labs to drive the next generation of screen technology and on-set virtual production.

The national hub is to be located at Pinewood Studios, home to James Bond and the Marvel and Star Wars franchises, although the government has only officially said it will be located in the studio’s home county of Buckinghamshire.

Regional research labs will be established in West Yorkshire, Dundee and Belfast, with a national lab in Buckinghamshire, supported by the £63m investment from industry on top of £75.6m previously committed by the government.

“The creative industries are a true British success story, from global music stars like Adele and Ed Sheeran to world-class cultural institutions like the BBC,” said Rishi Sunak.

“These industries have a special place in our national life and make a unique contribution to how we feel about ourselves as a country.”

Despite facing huge challenges during the Covid pandemic, the sector has grown at 1.5 times the rate of the wider economy over the past decade, contributing £108bn in gross value added (GVA) annually. Employment in the industries has grown at five times the rate of the economy since 2011.

The overall amount announced on Tuesday includes £50m to help startups and creative entrepreneurs around the country.

About 400 grassroots music venues – the “lifeblood of our world-leading music sector”, according to the government – will receive an additional £5m over two years via Arts Council England. However, the sum averages out at just £12,500 for each venue.

Funding for the Music Exports Growth Scheme, which helps emerging musicians break into global markets, will be expanded by £3.2m over the next two years. Brit Rising Star nominee Beabadoobee said the funding had given her a “helping hand” and “more money will … help even more artists break through”.

An additional £5m will go to the UK Games Fund, bringing its total funding to £13.4m over the next two years. The fund awards grants to young video game developers to turn ideas into prototype products.

“The games industry is worth billions of pounds,” said Lucy Frazer, the culture secretary. It was important as a research and development vehicle for other sectors. “For example, the 3D technology [used in gaming] can also be used for robotic arms in surgery.”

London fashion week and the London film festival will get new funding of £2m and £1.7m respectively as “international showcase events which enhance our soft power and boost creative exports”.