Film industry calls for tax relief reform in open letter to new PM

Published by

Sam Pither

Banner concept of innovation, creativity and imagination

Creative sector not-for-profit Creative UK has penned an open letter to the new Prime Minister setting out the sector’s economic priorities and calling for support to grow.

A top priority outlined in the letter is Creative Industries Tax Reliefs. The pre-existing tax reliefs enable the sector to invest in new content and attract overseas investment. Creative UK is calling for two new tax reliefs for music and publishing.

They also call for reforms to the VFX & Animation and Video Games tax reliefs as well as making a case for the continuation of reliefs for museums and galleries, theatres and orchestras.

On top of this, Creative UK are suggesting these key steps:

Expanding R&D Tax Relief to reflect the internationally recognised Frascati definition*, aligning the UK with other high-growth economies.
Cutting VAT from cultural experiences and creative products, including event tickets and audiobooks.
Applying Business Rate Relief to cultural sites, venues and hubs and removing the VAT applied to historic buildings for maintenance and repair.
Delivering the Arts Premium promised in the Conservative Party Manifesto and enabling FE and HE to upskill the next generation.
Establishing a new compact between UK government and freelancers and retaining the UK’s strong Intellectual Property framework.

*The Frascati definition sets out the requirements necessary to make activity qualify as R&D. Namely, it must be novel, creative, uncertain, systematic and transferable and/or reproducible.

The creative industries play an important role in the economy of the South East, particularly in the Thames Valley which has been dubbed the ‘Cine Valley’, reflecting the high number of film and tv studios in the region.

As well as the established Pinewood Studios, home to major TV shows such as Channel 4’s Taskmaster, Shinfield Studios is currently under development in Berkshire and will host high-end TV, streaming and film companies including Disney.

Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset. A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise. Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.