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Sector Calls for Support to Grow in Open Letter to the New PM
As the new Prime Minister settles into Number 10, the Creative Industries are putting themselves firmly in the in-tray. Ahead of the emergency budget later this month, Creative UK and its trade body and union members have penned an open letter to Liz Truss setting out the sector’s economic priorities. The Government has already recognised the Creative Industries as a priority industrial sector, and these budget priorities are designed to grow the sector at a time when growth is vital.
Top of the list are Creative Industries Tax Reliefs. Where they already exist, the sector has used them to invest in new content and attract investment from overseas. Tax reliefs work, which is why we’ve asked Liz Truss to reaffirm her commitment to existing tax reliefs. We make the collective case for two new tax reliefs (for music and publishing), suggest reforms to the VFX & Animation and Video Games tax reliefs and call for the continuation of reliefs for museums and galleries, theatres and orchestras.
But action on tax reliefs alone is not enough. To help the sector grow in the face of economic uncertainty, action on other budget priorities will be essential. The Government must:
- Unleash creative innovation by expanding R&D Tax Relief to reflect the internationally recognised Frascati definition, aligning the UK with other high-growth economies.
- Bolster consumer spending and deliver benefits to wellbeing by cutting VAT from cultural experiences and creative products, including event tickets and audiobooks.
- Ease the pressure of rising costs by applying Business Rate Relief to cultural sites, venues and hubs and removing the VAT applied to historic buildings for maintenance and repair.
- Invest in our future workforce by delivering the Arts Premium promised in the Conservative Party Manifesto and enabling FE and HE to upskill the next generation.
- Incentivise entrepreneurship by establishing a new compact between UK government and freelancers and retaining the UK’s strong Intellectual Property framework.
Creative UK will continue to champion the needs of its members and advocate for the sector, and as a new set of ministers get to grips with their portfolios, that work continues.
(available to Federation members)