In this year’s Autumn Statement, the UK government has quelled industry concerns over the new tax credit, but they still declined to raise relief for indie film. Equity has called out Conservatives for “undermining public service broadcasters and pursuing a culture war against marginalized groups.”
Chancellor Jeremy Hunt’s statement was met with complaints from companies such as Warner Bros. Discovery, Paramount, and Pinewood. There were also concerns about which documentaries would qualify for the credit, which the government addressed, stating they will now be “aligning with the guidance used by the BFI.”
The UK’s TV tax credit has been an incredible success during its over-a-decade existence. Chancellor Hunt simplified it eight months ago when introducing a new Audio-Visual Expenditure Credit, which brought together many different credits.
While this new relief was broadly welcomed by major industry heads, many filmmakers have developed concerns over the film becoming “connected party” profits. As of now, the government said companies must “disclose connected party transactions and charge connected parties at an arm’s length price.”
Amongst the industry, there were many different reactions:
After the government failed to take up producer trade body Pact’s offer to increase tax relief on lower-budget films, the body stated the government “missed an opportunity to remedy clear market failure.”
The BFI, one of the more heavily involved industry leaders, praised the statement’s delivery of “a package of measures that will help the UK maintain its competitiveness as a global hub for audio-visual production.”
VFX firm representative, the UK Screen Alliance welcomed the potential incentives for visual effects in a statement by CEO Neil Hatton: “The consultation and the promise of a more competitive incentive, announced today should aim to position the UK as the first choice destination for VFX production for international film and TV.”
Equity, the actors’ union, has concerns spawning from the government’s refusal to reverse already existing cuts to the BBC and the local performing arts sector. In a statement by their General Secretary, Paul W. Fleming, the Autumn Statement was criticized for “undermining our public service broadcasters, and pursuing a culture war against marginalized groups.”
The Head of Bectu, the union representing technical crew members, Philippa Childs said, “Whilst we welcome the warm words for our world-leading film and TV sector, there was little in the statement to support the creative industries beyond the call for evidence on increasing tax relief for VFX.”
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