Culture Secretary Lisa Nandy has announced the government will provide a £13.5 million boost to Merseyside’s live music sector and support creative firms in the West Midlands working on live performance incorporating VR and immersive technology.

Merseyside and the West Midlands have been selected in the government’s Creative Industries Clusters, delivered by the Arts and Humanities Research Council on behalf of UK Research and Innovation, which aims to grow specialist creative subsectors across the UK.

 Liverpool City Region’s MusicFutures cluster will benefit from £6.75 million to bring together partners including the city’s two universities, the Royal Liverpool Philharmonic and the Liverpool M&S Bank Arena (pictured). The cluster will provide funding and training for musicians, educators and small businesses to harness new technologies such as AI and Extended Reality (XR) and explore making the live music sector more environmentally sustainable.

CreaTech Frontiers in the West Midlands will also benefit from £6.75m in funding, with the investment focusing on developing small, micro- and medium-sized businesses specialising in creative technology. DCMS said several regional universities alongside the Royal Shakespeare Company will work with industry to boost skills and develop new products, technology and multi-platform content. This will include using VR, 3D-modelling and animation techniques in live events, and adapting video game engines for use in music, theatre and film.

Experimental performance projects curated by the RSC will be showcased at South by Southwest (SXSW) festival in Texas in 2026, while the Birmingham Opera Group and The Rep theatre will stage new works, including co-creations with young people in deprived areas of the West Midlands.

Said Nandy, “Talent is everywhere but opportunity is not. That’s why we are supporting firms, artists and freelancers that are innovating, using new technology and driving growth in creative clusters across the country.

“Liverpool and Merseyside hold a special place in our nation’s music landscape, and this funding will support imagination and experimentation across the city and region, as creators explore how we can make gigs more environmentally friendly.”