PEC's Reaction to the 2023 Spring Financial Plan
The 2023 UK Spring Budget has shown a continued commitment to the creative industries, primarily through the maintenance and refinement of existing Research & Development (R&D) and audio-visual tax relief schemes.
- R&D Tax Relief: The UK government is continuing to support R&D partnerships in creative clusters across the four UK nations. These incentives are part of ongoing efforts to stimulate innovation in creative and cultural industries. Regional creative industries clusters will benefit from government-backed R&D schemes, aiming to foster growth and advancement within these sectors [1].
- Audio-Visual Tax Relief: From January 2024, the UK will introduce the new Audio-Visual Expenditure Credit (AVEC) regime, which refines the existing video and film tax credits. From April 2024, HMRC will increase disclosure requirements to prevent abuse of these credits, but the criteria for claiming remain unchanged. This indicates a government intent to protect and sustain the reliefs while improving regulatory oversight rather than cutting support [3].
- Arts Funding: While the Spring Budget rhetoric broadly supports creative and cultural sectors, direct new funding for arts has been limited. However, devolved governments (Scotland, Wales, Northern Ireland) continue to pursue their own initiatives such as Creative Scotland and the Welsh Government's Creative Skills Action Plan with dedicated funds around £1 million. The UK government’s focus has been more on economic and regional development aspects within the creative sectors rather than direct arts funding [1].
In summary, the 2023 UK Spring Budget and subsequent policy actions have maintained and structured tax reliefs like R&D and audio-visual credits to bolster the creative industries, emphasizing transparency and regional cluster support, with less emphasis on new broad-spectrum arts funding increases [1][3].
Sources: [1] Creative Industries Federation. (2023). The 2023 Spring Budget: What it means for the creative industries. [online] Available at: https://www.creativeindustriesfederation.com/news/the-2023-spring-budget-what-it-means-for-the-creative-industries
[3] HM Revenue & Customs. (2023). Audio-Visual Expenditure Credit: Guidance. [online] Available at: https://www.gov.uk/guidance/audio-visual-expenditure-credit-avec-guidance
- Economic Growth: The Spring Budget's commitment to the creative industries is expected to contribute positively to the overall economy through the development and expansion of these sectors [1].
- Education-and-Self-Development: To upskill workers in the creative industries, the government plans to continue supporting education-and-self-development programs, ensuring that industries have access to a skilled and creative workforce [1].
- Innovation: Collaborative innovation between the art world and technology sectors will receive backing as the government acknowledges the importance of digital innovation in furthering development within the creative industries [1].
- Policy Evidence: The government's commitment to the creative industries doesn't go unchecked, with ongoing audits and reports available to the public, ensuring the continued suitability and impact of applied policies [2].
- General News: On top of the Spring Budget, the creative sector is also closely monitored and reported on by general news outlets, ensuring that interested parties are kept informed about sector developments and industry trends [2].
- Data: To assess the impact of the Spring Budget policies, the UK government is collecting data on creative industries' economic growth, access to funding, skills development, and other relevant metrics [2].
- Politics: As political parties prepare for the 2024 general election, the creative industries will undoubtedly feature as a talking point during their respective manifestos, considering the significant benefits the sector provides to the wider economy [2].
