Hugh Laurie, Rosemary Squire and Michael Morpurgo among those on New Year's Honours list

The Queen's new year's honours list has been announced, recognising key figures in the arts including Rosemary Squire, Hugh Laurie and Michael Morpurgo.

Squire, who is founder, co-owner and joint chief executive of The Ambassador Theatre Group and is already an OBE, has been made a Dame Commander of the Order of the British Empire for her services to theatre and to philanthropy. ATG, founded in 1992, is a major international theatre organisation with 46 venues across the world and is based out of London.

Squire said: "I am absolutely delighted to receive this great honour which I take as tribute to the creativity and resourcefulness of theatre in this country. I hope that what I’ve been able to achieve will convince young entrepreneurs just starting out that they can succeed in this industry – and that it can be a fascinating and rewarding journey."

Author Morpurgo is given a knighthood for his services to literature and charity. His works include War Horse, The Amazing Story of Adolphus Tips and Private Peaceful (all adapted for the stage) and between 2003 and 2005 was the third British children's laureate.

Elsewhere, comedian and actor Laurie is made Commander of the Order of the British Empire for his services to drama. Julia McKenzie (Fresh Fields, Marple) and the Emmy Award-winner Susan Hampshire are both also made Commander of the Order of the British Empire. Playwright and screenwriter Peter Nichols (A Day in the Death of Joe Egg) receives the same honour, also for his services to drama.

Director John Tiffany, who directed Harry Potter and the Cursed Child and the recent National Theatre production of Pinocchio, is made an Officer of the Order of the British Empire for his services to drama. Writer and playwright John Godber (Up 'n' Under, Teechers, Shafted) and Jane Claire, a producer at the English Touring Theatre both receive the same honour.

Kinky Boots star and singer Matt Henry, who won an Olivier Award for Best Actor in a Musical for his performance as Lola, is made a Member of the Order of the British Empire for his services to musical theatre. Scottish actor James Cosmo receives the same honour for his services to drama.

Martin Green, chief executive and director of the Hull UK City of Culture programme this year and Veronica Wadley, chair of Arts Council London, are both made CBE for their services to the arts.

Casting director Pippa Ailion is made a Member of the Order of the British Empire for her services not only to theatre but also to diversity within the arts community. Cardboard Citizens artistic director Adrian Jackson is also made MBE.

Two creatives are given the top honour of being made Members of the Order of the Companions of Honour – broadcaster and author Melvyn Bragg, and author and historian Antonia Fraser. Fraser was previously married to playwright Harold Pinter.