Budget boost for creative industries
22 Mar 2012 03:18 PM
Tax relief proposals for animation, video games and high-end TV production industries.
The Chancellor has announced plans for tax relief for three of the UK’s key creative industries from April 2013.
In the Budget recently, George Osborne announced his intention to introduce tax relief for the animation, video games and high-end TV production sectors subject to state aid approval and following consultation.
Tax breaks for animation and TV would aim to reverse a trend of UK productions being made overseas and attract foreign companies to make their progammes in the UK. Tax relief for video games could help to increase the sector’s contribution to the UK economy by £280 million over the next five years.
The Chancellor also announced details of Government plans to invest in ten new super-connected cities.
Facts and figures
- Currently around 600 companies in the UK employing over 4,700 people
- In 2009, the UK animation industry produced 191 hours of animation worth £102 million
- Exports of children’s TV programmes (including animation) were worth £150 million in 2009
- Great British animation currently made abroad instead of in the UK includes Thomas the Tank Engine (Canada), Bob the Builder (USA) and Noddy (Republic of Ireland)
UK-produced games generated £1.7 billion in sales worldwide in 2009
As of November 2011, there were 9,000 creative staff working in almost 300 games studios
UK consumers buy the largest number of games in Europe. Almost 60% of the UK population play video games, with an average age of 28. 48% of video gamers are women.
Over five years a games tax relief could create and protect 1,650 studio jobs and increase the games development sector’s contribution to UK GDP by £280 million
Great British video games made in the UK include Moshi Monsters, Little Big Planet and Lego Star Wars
The UK is the second biggest exporter of television content in the world, with exports worth more than £1.3 billion per year
UK television broadcasters generated revenue of £11.1 billion in 2009
The independent television sector contributes £4.3 billion per year to the UK economy (GVA) and employs 20,950 people – more than the television divisions of the BBC, ITV, Channel 4 and Five combined
Great British TV currently made abroad instead of the in the UK includes Julian Fellowes’ Titanic (Hungary), The Tudors (Republic of Ireland) and Birdsong (Hungary)