While multinationals, particularly those within the ecommerce sector will be looking into the Chancellor’s “Google tax,” the creative sector has cautiously welcomed a number of announcements
Creative England’s CEO, Caroline Norbury said she welcomed the creation of the Sovereign Wealth Fund for the North of England and the potential it had to “unlock regional capital for regional growth.”
She also added:
“With 99% of businesses being Small or Medium Sized (SME), the announcements to support further investment in fast growing SMEs is great news. However, it is crucial that the creative and digital industries, which contribute over £71.4 billion a year to the UK economy, get their fair share of this finance.
“Whilst we welcome the announcement of an extension to the Funding for Lending Scheme, we hope that banks will step outside their comfort zone and recognise the crucial importance of lending to businesses built upon intellectual property and intangible assets.
“With the creative industries growing faster than most other industry sectors – much of this being driven by small creative business – it’s this bold approach that will help build the digital businesses of the future.”
In broadcasting, the Chancellor introduced Children’s Television Tax Relief, which will offer live action children’s television the same benefits as animation and film.
“Over the last decade, budgets have shrunk and as a result 90 percent of children’s TV is now repeats, with content dominated by US imports, according to Pact. The introduction of tax credits will help restore the children’s TV sector in the UK and provide vital support for production companies to shoot here rather than abroad, putting Britain back on the map as a cost-effective destination for production,” stated Sue Taylor, relationship director, Barclays’ Technology, Media & Telecoms team. Barclays deals with almost half of the large indies in the UK.
Children’s Television Tax Relief will be effective from April next year, although it is subject to receiving approval from EC State Aid.
George Osborne also said that the Government would consult the production industry on an enhancement to the UK High-end Television Tax Relief. This would reduce the minimum UK spend requirement from 25% to 10%. It would also “modernise” the Culture Test, which should lead to more international productions filming in the UK.