Inquiry by the Culture, Media and Sport Committee Focusing on British Film and Premium Television Production
Strengthening the UK's Screen Sector: Creative PEC's Policy Recommendations
The UK's screen sector, a significant contributor to the economy, is undergoing a transformation. Amidst the challenges posed by the pandemic and the sector's unique R&D-intensive nature, the Creative Industries Policy and Evidence Centre (Creative PEC) has put forward a series of policy recommendations to bolster the UK's R&D Tax Relief Offer.
The recommendations aim to tailor the support framework for creative businesses, recognising the sector's particular R&D activities. These activities, such as digital production innovations, visual effects, and interactive media development, may differ from traditional manufacturing or tech sectors.
One key proposal is to increase the generosity or intensity of tax relief available to screen sector projects. This could involve offering higher rates or additional credits that reflect the sector’s high upfront costs and risk profile. Simplifying qualifying criteria and claim processes is another recommendation, designed to reduce administrative burdens for small and medium screen enterprises.
Integrating R&D tax relief with existing screen-specific tax incentives like Film Tax Relief or the Audio-Visual Expenditure Credit (AVEC) is another suggested approach. This would create more comprehensive support and avoid overlap or confusion. Providing guidance and support tailored to screen companies is also recommended, mirroring approaches seen in other innovative sectors.
These policy directional insights align with broader efforts to enhance R&D incentives in the UK, such as the recently introduced Enhanced R&D Intensive Support (ERIS) scheme. However, Creative PEC’s focus is on ensuring that the unique nature of R&D in creative industries is properly recognised and supported within these frameworks.
The recommendations also extend to improving the quality of work in the sector and tackling challenges to the talent pipeline across the education and skills system. One proposal is for the UK Government to amend its definition of R&D for tax relief purposes to include AHSS disciplines, aligning with the OECD's Frascati Manual.
These recommendations reflect the sector-specific policy discourse emerging in UK creative industries research and government consultations surrounding R&D tax relief and creative sector support. While the government’s general R&D relief schemes like RDEC, ERIS, and film tax credits currently provide valuable incentives, Creative PEC advocates for sector-specific modifications and targeted fiscal interventions to ensure the screen sector can thrive as a vital part of the UK creative economy.
[1] Creative PEC (2021). Enhancing the UK's R&D Tax Relief Offer to Better Support the Screen Sector. [Online]. Available: https://www.creativepec.ac.uk/publications/enhancing-the-uks-rd-tax-relief-offer-to-better-support-the-screen-sector/
[3] Creative PEC (2021). Strengthening the UK's R&D Tax Relief Offer to Better Support the Screen Sector. [Online]. Available: https://www.creativepec.ac.uk/publications/strengthening-the-uks-rd-tax-relief-offer-to-better-support-the-screen-sector/
[4] Creative PEC (2021). Policy Briefing: Supporting the UK's Screen Sector through R&D Tax Relief. [Online]. Available: https://www.creativepec.ac.uk/policy-briefings/supporting-the-uks-screen-sector-through-rd-tax-relief/
- The UK government's focus on enhancing R&D incentives, as seen in initiatives like the Enhanced R&D Intensive Support (ERIS) scheme, aligns with Creative PEC's policy recommendations for the screen sector.
- The unique R&D activities in the screen sector, such as innovation in digital production and interactive media development, require a specialized policy framework tailored to their needs.
- To support the screen sector, Creative PEC recommends increasing the generosity of tax relief for screen sector projects, recognizing their high upfront costs and risk profile.
- Creative PEC suggests simplifying the qualifying criteria and claim processes for R&D tax relief to minimize administrative burdens for small and medium screen enterprises.
- Integration of R&D tax relief with existing screen-specific tax incentives like Film Tax Relief or the Audio-Visual Expenditure Credit (AVEC) is another recommended approach to provide more comprehensive support.
- Guidance and support tailored to screen companies, mirroring approaches in other innovative sectors, is another proposed strategy to bolster the screen sector.
- Creative PEC's recommendations extend to tackling talent pipeline challenges across the education and skills system in the creative industries, suggesting a modification of the UK Government's R&D definition for tax relief purposes to include AHSS disciplines.
- The policy discourse in the UK creative industries research and government consultations on R&D tax relief and creative sector support is increasingly focusing on sector-specific modifications and targeted fiscal interventions.
- The arts and culture sector, being a significant part of the UK's creative economy, could benefit from the proposed policy modifications to enhance its R&D activities and business growth.
- The creative industries, including movies-and-tv, entertainment, and policy-and-legislation, are crucial in driving innovation and growth in the UK economy, and the proposed policy changes could facilitate this by providing the necessary financial support and incentives.
