Will the Autumn Statement Tax Relief and the Media Bill Boost the UK Creative Industries?

The UK film and television industry got a major boost in the recent budget announced by Chancellor Jeremy Hunt.

The UK government is trying to drive up the UK economy with tax reliefs for the entertainment industry and a proposed upgrade in the Media Bill to change British broadcasting, announced a day before the autumn statement.

Announcing some tax relief for the entertainment industry, UK Chancellor Jeremy Hunt revealed that films and TV shows will get more support for visual effects (VFX) in the UK.

Britain is a popular destination for major Hollywood films like the latest Mission Impossible film which was mostly shot in Yorkshire. However, UK tax systems make it hard for Hollywood studios who often look elsewhere to do the visual effects.

The tax relief for the UK film and television industry has been widely welcomed by the film fraternity including the UK Screen Alliance which represents the VFX industry.

Reacting to the tax relief news, the Chief Executive of the UK Screen Alliance, Neil Hatton said: "The new measures should aim to position the UK as the first choice destination for VFX production for international film and TV".

Earlier, the UK Screen Alliance said to a House of Commons committee that the existing tax structure drives people away from the country rather than "attracting VFX work to the UK".

"The UK has world-class award-winning talent in this sector, but investment in the UK has stagnated, while other territories have increased the attractiveness of their incentive programmes," said the organisation.

As per the UK Screen Alliance VFX improves films as it is the "digital manipulation of images to enhance, augment or entirely replace elements of live-action shots in films, TV programmes or commercials".

On Wednesday, the UK government revealed that there have been reports of "visual effects activity moving overseas, with some UK-based companies reportedly focussing their expansion overseas".

The Chair of the House of Commons Culture Committee, Same Caroline Dinenage welcomed the move saying it would provide "this valuable part of the industry with a much-needed competitive edge".

The Sunak government has said that the tax relief announced in the budget will be effective for visual effects work done in the UK from April 2025. The government has sought inputs from the UK film and television industry on how the new measures should be implemented.

The autumn statement also predicted a rise in jobs in the UK creative industries as they open up to new technologies and the UK government is trying to maximise this with "tax incentives for the UK's world-leading visual effects sector".

However, not everyone is happy with the new measures. Several industry bodies think that the Sunak government hasn't done enough for the film industry in the budget, especially in the current cost-of-living crisis scenario in the UK and the SAG-AFTRA strikes in the US.

An organisation of UK production companies, Pact has spoken of the independent film sector which they think is at "the point of market failure".

"The Autumn Statement is a missed opportunity for ministers to remedy a clear market failure within the independent film sector," said Pact.

The organisation further explained how "investment into indie films has been in consistent decline and producers are finding it increasingly difficult to secure financing in a challenging market".

Upgraded Media Bill to make better TV shows more accessible to UK audiences

Meanwhile, the UK government presented an updated media bill to maximise the potential of the UK television and radio industry earlier this week.

On November 21, the Department for Culture announced that the Media Bill is going through a second reading at the House of Commons as the government tries to remove the "Sword of Damocles" anti-free press laws.

New measures introduced in the Media Bill will ensure that a wide range of television programmes across genres remain visible on the primary UK broadcasting channels. The bill will also make sure that UK audiences get free access to crown jewel sports events.

The UK government is trying to support Britain's public service broadcasters (PSBs) to create more hit TV shows, by making them more visible on smart TV and streaming sticks.

The Media Bill introduces a video-on-demand code for major OTT platforms like Netflix, Amazon Prime Video and Disney+ for better protection of children and vulnerable people. This will be regulated by Ofcom to ensure high-quality UK TV shows hit the screens and speakers maximising the potential of UK broadcasters.

"The Media Bill will update decades-old legislation to unleash the power of British broadcasters to attract bigger audiences in the UK and abroad, empowering them to invest in new talent and technology while supporting the government's ambition to grow the creative industries by £50 billion and one million jobs by 2030," said the UK government.

PSBs will have more control over television schedules and can be flexible with the TV shows they are offering based on demand. This includes flexible rules on the types of programmes they are allowed to show. The move is aimed to make the PSBs focus more on content.

According to the feedback received on the draft Media Bill, the government is making sure that the UK laws allow for "an appropriate range of programme genres to be available on the PSB services, protecting against a potential reduction in specialist genres of shows – such as religious, science and arts programming".

The new laws will also make it mandatory for the PSBs to show news and children's programmes.

The government is addressing loopholes in broadcasting laws that allow streaming services to bypass the regime and provide regulated streaming of sports events like the FIFA World Cup or the Olympic and Paralympic Games. The Media Bill ensures free live coverage of such international sports events.

A new definition of "relevant services" has been added to the Media Bill which ensures that unlisted events regimes that provide TV-like services of live content to UK audiences will come under the law. This is done to ensure that listed TV events get fair and reasonable offers from PSBs as people move to online services.

Terming this decade as the "golden age of silver screen", Culture Secretary Lucy Frazer said: "Whether it's reality shows like the Great British Bake Off and I'm A Celebrity, or dramas like Time, Happy Valley or Broadchurch – our public service broadcasters have proven they can go toe-to-toe with the streaming giants."

"But success today is never a guarantee of success tomorrow. The rise of streaming giants and on-demand content, YouTube and smartphones, tablets and TikTok have combined to reshape our whole broadcasting landscape," the Culture Secretary added.

Frazer elaborated on the Media Bill's role providing a levelled playing field as it removes threats to the broadcasters' sustainability and opens up "new opportunities to maximise growth and unlock potential".

"It is our job to enact reforms that keep our broadcasters at the top of their game in the years ahead," Frazer added.

The Media Bill speaks of press freedom. "Section 40, and the possibility of publishers having to pay the legal costs of the people who use them, even if they win, has hung over our media like a Sword of Damocles. This Bill removes the sword for good," ascertained the Culture Secretary.

The new safeguards for production companies would protect millions of pounds of investment in programmes made by independent TV producers across the UK at a time when actors, writers and technicians are battling for royalties with Hollywood studios

The Media Bill removes the unnecessary burden of commercial radio services not being available freely on smart devices. It also makes newspapers pay for both sides' costs of legal proceedings, even if they win the case.

The Media Bill has special allocations to boost the services of Welsh language broadcaster S4C as it seeks to make the channel's content available across the UK and on digital services. Along with S4C, Channel 4 will get new freedoms to create and boost its content.

Speaking about the matter, the Chief Operating Officer of the multi-platform content provider in Welsh language S4C, Elin Morris said: "The new framework will ensure that indigenous languages, including Welsh, are part of the new public service remit for television in the UK."

"The Bill will extend legislation for online TV viewing and ensure that S4C Clic is available on connected TVs and prominent on TV sets in Wales. This will allow us to further develop our services and place Welsh-language content on the main platforms across the UK," Morris added.

According to Morris, the Media Bill will provide the necessary support to world-class UK broadcasters like the BBC, ITV, Channel 4, Channel 5, STV and S4C – "through new requirements for their apps and content to be shown prominently on popular smart TVs and streaming sticks".

UK audiences will also benefit from strong protection laws that protect children from harmful content and present age-appropriate shows on demand through Ofcom regulated Video-on-demand Code.

It will also ensure that OTT platforms like Netflix, and Amazon Prime Video fulfil new requirements for subtitling, audio description and signing to cover mainstream services, said Morris.