The 2024 Autumn Budget has brought significant news for the UK visual effects (VFX) and creative industries, with Chancellor Rachel Reeves confirming a substantial uplift in tax relief aimed at bolstering film and high-end television production. This announcement is particularly noteworthy to Creative Personnel and our clients and candidates, as the budget highlights a strategic focus on enhancing the creative industries.
Key highlights of the budget on the VFX industry:
Increased VFX tax relief: the budget introduces a 5% increase in tax relief for VFX costs associated with film and high-end TV productions, raising the net rate to 29.25%. This increase is expected to attract an additional £175 million annually in VFX spending, translating to over a 45% boost in investment and the creation of approximately 2,800 new jobs within the sector. The uplift will take effect from January 1, 2025, ahead of the previously anticipated date of April 1, 2025.
Generative AI exclusion dropped: in a move welcomed by industry stakeholders, the government has reversed its earlier decision to exclude generative AI from the additional tax relief. This change comes after consultations with the sector and is expected to incentivise productions to invest significantly in the UK’s VFX capabilities.
Investment in Crown Works Studios: the budget allocates £25 million towards the development of Crown Works Studios in Sunderland, a project expected to create around 8,000 jobs. This investment aligns with broader efforts to enhance regional creative hubs and stimulate local economies.
Support for creative industries: the Labour government has identified creative industries as a key growth sector within its industrial strategy. Alongside the VFX tax relief, there is a commitment of £3 million aimed at expanding career opportunities for young people in creative fields.
Industry reactions
The response from industry leaders has been largely positive:
Neil Hatton, CEO of UK Screen Alliance, expressed enthusiasm about the immediate availability of the VFX rebate, stating that it positions the UK as an attractive destination for international productions looking to place their VFX work. This strategic move is expected to generate considerable inward investment and bolster the UK’s reputation in visual effects
The British Film Commission also welcomed these developments, noting that enhanced tax incentives will play a crucial role in maintaining the UK's competitive edge in global film production. The commission emphasised that these measures reflect confidence in the sector's potential for growth and innovation.
Key takeaways
The 2024 Autumn Budget brings tax relief and strategic investments poised to drive growth and job creation. By prioritising support for creative sectors and addressing previous concerns regarding generative AI, the Labour government demonstrates its commitment to fostering an environment conducive to innovation and investment. These initiatives are expected to have lasting positive impacts on both the economy and the creative landscape of the UK.
If you need expert advice on how to take advantage of these initiatives to boost your career and business, get in touch with us
