British Film and High-End Television Investigation Led by Culture, Media and Sport Committee
The UK Government is urged to amend its definition of Research and Development (R&D) for tax relief purposes, aligning it with the OECD's Frascati Manual. This change is crucial, as the UK's screen sector, which plays a significant role in the economy and attracts foreign direct investment, is currently undersupported by the existing R&D tax relief scheme.
The sector is facing several challenges, including significant skills shortages affecting a wide range of roles and the ongoing struggles of cinema, multiplexes, and mixed arts venues post-pandemic. To address these issues, the Department of Culture, Media and Sport's (DCMS) Culture and Heritage Capital Framework is recommended for continuation, to assess where support is needed.
Research from the British Film Institute (BFI) and Independent Cinema Office has highlighted these challenges, and the Creative PEC's Good Work Review underscores the need for change at multiple points of the education and skills system to improve the quality of work in the sector.
The Creative Industries Policy and Evidence Centre (Creative PEC) suggests strengthening the UK's R&D Tax Relief offer to better support the Screen sector. Although specific policy recommendations for this tax relief are not detailed, Creative PEC research emphasises the need for innovative tax and benefits policies tailored to creative industry freelancers and businesses.
These recommendations aim to improve access to finance and foster innovation. They include revising R&D Tax Relief to better reflect the operational realities of the Screen sector, integrating R&D tax incentives with broader financial support programs and creative clusters, and streamlining tax relief claims to reduce administrative burdens.
Improving business models and access to finance is critical for sector growth and innovation, and these recommendations align with Creative PEC's broader calls for targeted innovation support and improved business finance understanding within the creative industries.
For exact detailed policy proposals, consulting the Creative PEC reports on R&D and business models in creative industries would be necessary. These recommendations, while not exhaustive, provide a strategic direction for enhancing the UK's R&D Tax Relief to better support the Screen sector and foster innovation.
- The UK Government needs to reconsider its definition of Research and Development (R&D) for tax relief to align with the OECD's Frascati Manual, enabling the screen sector, a crucial part of the economy, to receive adequate support.
- The ongoing struggles of the screen sector, which include significant skills shortages and the impact of COVID-19 on cinema, multiplexes, and mixed arts venues, call for immediate attention.
- The DCMS's Culture and Heritage Capital Framework is recommended for continuation to identify areas requiring support.
- Research by the British Film Institute (BFI) and Independent Cinema Office has brought to light these sectoral challenges, and the Creative PEC's Good Work Review suggests modifications in the education and skills system to improve the quality of work.
- Creative PEC recommends strengthening the UK's R&D Tax Relief scheme to better cater to the Screen sector, emphasizing innovative tax and benefit policies for freelancers and businesses.
- Policy changes aim to facilitate access to finance, encourage innovation, and streamline the tax relief claims process to reduce administrative burdens.
- These recommendations advocate for revising R&D Tax Relief in accordance with the screen sector’s operational realities, integrating R&D tax incentives with broader financial support, and nurturing creative clusters.
- Enhancing the UK's R&D Tax Relief system will foster innovation within the creative industries, following Creative PEC's broader calls for targeted innovation support and improved business finance understanding.
- Detailed policy proposals can be found in Creative PEC reports on R&D and business models in the creative industries.
- The strategic direction provided by these recommendations aims to optimize the UK's R&D Tax Relief to better serve the Screen sector, ultimately supporting the growth and innovation of the creative industries.
