Culture Secretary Chris Smith has unveiled a report showing that the UK's entertainment industry generates some £60bn a year and creates over 50,000 jobs a year.

With exports in goods and services reaching £7.5bn, the sector, which includes pop music, film, advertising and fashion, is growing at 5% a year and employs some 1.4m people.

It is in sharp contrast to the manufacturing sector, where exports have slumped and growth has almost ground to a halt.

New industries set the pace

The report, compiled by the government-appointed Creative Industries Task Force, reveals that computer games alone are worth over £1bn a year and employ over 30,000 people.

It also shows that exports from the sector will double in real terms over the next decade.

The Creative Industries Mapping Document is the first of its kind to scrutinise the industry's economic impact.

Popular figures such as Virgin boss Richard Branson, fashion designer Paul Smith, and Creation Records founder Alan McGee are just some of the Task Force members.

More skills needed

The report also points out barriers impeding the sector's growth, which include the weakness of intellectual property rights, a need for more skills training for technicians and potential over-regulation.

Not quite the full monty for the film industry

But the more mature film and music industries are under-performing in contrast to the revenue generated by the newer sectors, such as computer games and film effects.

Unveiling the report, Chris Smith said the report proved that Britain was one of the most creative nations on earth.