It was good news for the creative sector in the recent budget as the Chancellor announced tax relief for three UK creative industries – TV Production, animation and video games – all sectors within which Handle Recruitment operates.
In his statement he said that the tax breaks would reverse a trend of UK productions being made overseas and that they would also attract foreign companies to make their programmes in the UK. Interestingly, independent studios in Britain contribute £4.3 billion a year to the UK economy and employ almost 21000 people – this is more than the combined television divisions of the BBC, ITV, Channel 4 and Channel 5.
In terms of the gaming industry, British studios generated £1.7bn in worldwide sales in 2009 but have always found it difficult to compete with countries like Canada and France which offer state supported financial aid.
This is obviously great news for the UK economy not just in terms of potential revenue streams but also for the creation of new job opportunities for finance professionals – particularly in the areas of management accounting, financial analysis and production accounting.
The real key to the success of the scheme will be how well the Government advertises the availability of the credits – let’s hope they do it well so that we can see more foreign investment – and more jobs!
Tom Chadwick, Director Finance, Handle Recruitment