Film makers to get tax breaks to attract them to Britain
‘The UK is a world leader in creativity and we want to ensure that continues by making it easier to thrive’
FILM and TV companies are being offered tax breaks in the hope of bringing more Barbie-style blockbusters and hits like Happy Valley to Britain.
From today, businesses can claim thousands of pounds extra in tax credits in what ministers believe will maintain the UK’S position as a world leader in the creative industries.
Under the reforms, first announced in the Spring Budget in March, producers of children’s television and animated TV or films that spend more than £1million in Britain can claim another £42,500. Companies creating films, high-end television or video games will be entitled to an extra £5,000 – a 0.5 percentage point boost to existing relief, according to the Treasury.
Nigel Huddleston, Financial Secretary to the Treasury, said: “We are backing the makers of the next Barbie, Happy Valley and Grand Theft Auto with this new, more generous, tax credit system for British production talent. The UK is a world leader in creativity, and we want to ensure that continues by making it easier for British film, TV and video games to thrive.”
Mr Huddleston is not the first minister to hail the success of Barbie. Jeremy Hunt, the Chancellor, noted that the “all-californian blockbuster” was filmed in the constituency of Watford, “where the sun always shines”. The film, starring Margot Robbie and Ryan Gosling, was shot at Pinewood Studios in Buckinghamshire, which has hosted the Harry Potter and Star Wars series.
Britain is increasingly seen as a desirable country for film and TV production, with companies lauding its talent supply, tax incentives and the scale of its studio infrastructure.
However, some have recently raised concerns about escalating business rates and the punitive effect it could have on the industry.
In November, Pinewood studios warned that rates had increased. It said: “Such increases, when combined with higher finance and construction costs, will likely reduce the level of new development.”