Image copyright AP Image caption Sam Smith recently emerged as a hugely successful British talent

The British music industry invested nearly £500m in new music in 2014, with the signing up of new artists by major labels up 30%, data has suggested.

The number of new acts signed by major labels last year hit a five-year high of 156, the figures said.

They were supplied by the British Phonographic Industry (BPI) and Music Publishers Association (MPA).

It follows on from last week's news that the British music industry boosted the economy by £4.1bn last year.

'No fluke'

The 156 new artists signed by Sony Music, Universal Music and Warner Music was 26 more than in 2013, and just 12 fewer than the recent peak in 2009 of 164 new deals.

Geoff Taylor, chief executive of the BPI and Brit Awards, said: "It's no fluke that 2014 was such an outstanding year for British music.

"Alongside the artists themselves, the passion and commitment labels show in unearthing, nurturing and developing the next wave of talent is one of the main reasons our music is the envy of the world right now."

Investment by record labels in artist and repertoire (A&R) development reached a record £178m, with labels spending a further £157m on marketing.

Singer-songwriters earned £162m from music publishers, which takes the total outlay for the industry to £497m.

Image copyright PA Image caption The revenue generated by established acts such as One Direction is huge

EU investment figures also revealed that the music sector invested more revenue (25%) in development than industries such as the biotech, pharmaceuticals and auto sectors.

Jane Dyball, the head of MPA Group, said: "These investment figures highlight why British music remains so successful on the global stage.

"Importantly, these incredible figures also highlight that music publishers, like record labels, make a very substantial annual investment in A&R, further demonstrating the music industry's colossal contribution to the financial and cultural wealth of the UK."

Figures released in June revealed that the huge success of performers including One Direction and Coldplay saw UK albums and singles generated about $2.75bn (£1.8bn) in sales last year.