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The cash goes towards a plan to boost the UK's creative industries

The cash goes towards a plan to boost the UK's creative industries

Wednesday, March 6, 2024 at 1:32 pm

The Chancellor announced a range of changes to tax relief for Britain's creative industries sector during his Spring 2024 Budget announcement.

The Chancellor announced a raft of changes to tax relief for Britain's creative industries sector during his Spring 2024 Budget announcement on Wednesday.

Jeremy Hunt has unveiled a package that will provide more than £1 billion in extra tax relief over the next five years

According to Hunt, the UK's film and TV studio space has doubled in the past three years and, at the current rate of expansion, will be second only to Hollywood globally next year.

Now, eligible production studios in England will receive a 40% exemption on their gross business rates until 2034.

Dana Strong, Chairman of Sky Group, said: “We are delighted that the Chancellor of the Exchequer has today called for a cut in TV and film studio business rates, providing vital tax relief to enable the UK’s global film and TV production sector to continue to operate.” Thrives.

“Today’s announcement brings confidence to the sector, opening up business opportunities while providing a stable foundation for tomorrow’s investments in the UK, such as our proposal for Sky Studios Elstree North and the filming of NBCUniversal’s Jurassic 4.”

Hunt also confirmed increasing the tax credit rate by five percent and removing the 80 percent cap on visual effects costs. In a fall statement last year, he pledged more tax breaks for high-end film and TV visual effects.

Caroline Norbury, chief executive of Creative UK, said scrapping the 80 per cent cap “will make a real difference when it comes to stimulating UK production”.

Norbury is “delighted” to see the government introducing a new 53 per cent tax credit for independent films in the UK with a budget of less than £15 million.

Commenting on this particular announcement, Professor Matthias Frey, professor of film and media industries at City University London, said plans to incentivize low-budget domestic films “could come as a shot in the arm after a year of being affected by the crisis.” Hollywood writers and directors strikes.

In addition, £26 million in funding will be allocated to the National Theater to enable it to modernize its stages.

“Today I particularly want to pay tribute to the contribution of our creative industries and tourism that comes from orchestras, museums, galleries and theatres,” Hunt added.

During the Covid-19 pandemic, the government temporarily raised the headline rates of theater tax relief to 45 per cent and 50 per cent tax relief levels, which were due to end in March 2025. Hunt described it as a “lifeline” for performing arts across the country.

“Today, in recognition of their vital importance to our national life, I can announce that I will make these tax breaks permanent,” he said, revealing a 45 percent exemption for tourist trips and 40 percent for non-tourism production.

In today's Spring Budget announcement, Hunt also cut National Insurance from 10 per cent to 8 per cent.

Norbury, head of Creative UK, added that this reduction is “welcome for creative freelancers”, especially as the cost of living remains under pressure.

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In June 2023 Govt published A sector vision setting out ambitions to grow the creative industries sector by £50 billion in gross value added.