UK creative industries an “economic success story”
13 Aug 2020
The government has today published statistics revealing the take-up and cost of tax relief for film, high-end television, animation, video games, children’s television, theatre, orchestra, and museums and galleries exhibitions.
The data reveals that:
- In 2019-20, a total of £1.11 billion was paid out across all the creative industries tax reliefs. This is an increase from £1.08 billion in 2018-19.
- In 2019-20, Film Tax Relief accounts for almost half of the total amount paid out and High-End TV Tax Relief accounts for almost 30% of the total.
- Despite only 2% of Film Tax Relief claims being for over £5 million in 2019-20, they account for 66% of the total amount paid.
- High-end TV claims and payments continue to increase, with the relief amount rising to £324 million (from £246 million) on receipts basis year-on-year.
Stephen Bristow, a partner in Saffery Champness’ Film & TV Team, comments:
“These statistics are an important and timely reminder of the economic value of the creative industries. UK film and television is an international success story, employing over 125,000 full time earners. Film and high-end television (HETV) production spend has doubled in the past five years to reach more than £3.6 billion in 2019.
“This extraordinary growth has been fuelled by the government’s investment in the creative sector tax reliefs and it is very pleasing to see, yet again, record figures for that commitment published today. This is good news because for every £1 investment by the government in Film Tax Relief, £7.69 of GVA is generated. For HETV that figure is £6.10 of GVA for every £1 spent by the government.
“The film and television sector has a vital role to play in the recovery of the UK’s economy post-Covid-19. The benefits of the production boom flow downstream to a multitude of other businesses and support functions – post-production houses, advertising, merchandising, hotel, travel and local transport and infrastructure in production locations – which all provide employment opportunities.”