New tax credits for British film, TV and video game makers start today

  • New and improved tax credit system for film, TV and video game production companies starts from today
  • An extra £42,500 in relief for children’s TV, animated TV and animated film production
  • £5,000 in relief for high-end TV, film or video game production

British film, TV and video game producers will benefit from new, more generous tax credits that start today (1 January 2024).

To maximise the potential of the UK’s cutting-edge production industry and help incubate unique British talent, the government’s Audio-Visual Expenditure Credit and the Video Games Expenditure Credit replace the previous tax reliefs for film, TV and video games.

All companies will receive more tax relief than they did under the previous system, greater flexibility over production decisions and greater clarity about the amount of credit companies can expect to receive.

Nigel Huddleston, Financial Secretary to the Treasury, said: “We are backing the makers of the next Barbie, Happy Valley and Grand Theft Auto with this new, more generous, tax credit system for British production talent.

“The UK is a world leader in creativity, and we want to ensure that continues well into the future by making it easier for British film, TV and video games to thrive.”

Under the new system, a children’s TV production, animated TV production or film with £1 million of qualifying expenditure will receive an additional £42,500 in relief. A high-end TV production, film production or video game will receive £5,000 in relief. To ensure fairness, the uplift in relief for animation will be extended to include animated films as well as TV programmes.

The credits will be calculated directly from a production or game’s qualifying expenditure, instead of being an adjustment to the company’s taxable profit.

Animation and children’s TV productions will be eligible for a higher credit rate of 39%, a rate increase of 5.5% under the previous reliefs. The 34% credit rate for film, high end TV and video games is roughly equivalent to a rate increase of 0.5% under the previous tax reliefs.

The new system applies to the whole of the UK.

The government has listened to feedback from industry that companies will need sufficient time to adapt to the new expenditure credits. For this reason, productions and games in development on 1 April 2025 may continue to use the previous tax reliefs until they end on until 1 April 2027.

The move to reform tax relief for entertainment productions and video games was announced at the Spring Budget in March 2023. The system implemented today was developed hand in glove with the UK entertainment industry, with consultations on both the policy itself and the draft legislation. It is being legislated as part of the Finance Bill 2023-24.

The UK’s creative industry is already worth £126bn and the UK has the largest video game employee base in Europe, at nearly 21,000 by the last estimate.

Today’s new tax credit system is the latest move by UK Government in support for British creative industries. The Chancellor also announced that full-expensing will be made permanent in 2023’s Autumn Statement, helping creative businesses invest for the less by saving them 25p in every £1 they spend on qualifying equipment and machinery.

At Spring Budget 2023, the Chancellor also extended the rates of relief for theatre, orchestra and museums for two additional years to April 2025.

In September last year, coinciding with a visit by the Chancellor Jeremy Hunt to Warner Bros. Studios in Los Angeles, it was announced that the production giant would expand their studio in Leavesden, Hertfordshire, in 2024. The move is expected to create 4,000 new jobs in the UK and contribute more than £200m to the UK economy.

Going green: Glenmorangie’s bottling plant switches to solar

New solar array reduces bottling plant’s national grid reliance by one-third

The Glenmorangie Company has installed a new solar array at its bottling plant in Livingston, as part of a significant eight-figure investment in its operations, which will reduce its current on-site energy consumption by 30 per cent.

The 1,476 panels cover the majority of the building’s roof, allowing Glenmorangie to generate its own renewable energy, delivering significant savings and at the same time reducing its carbon footprint. 

It forms part of the company’s overarching sustainable strategy to achieve net zero carbon by 2040. The installation has been carried out by West Lothian based DB Group, in partnership with Emtec Energy. The DB Group will offer energy management support as The Glenmorangie Company continues to reduce energy consumption and works towards its green targets. 

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The Company’s purpose-built Livingston site was opened in 2011. As global demand grows for both its Glenmorangie and Ardbeg Single Malt Whiskies the Company is doubling capacity at its bottling plant through an expansion due to complete in 2023. The solar array forms part of that development.

Michael Scotland, Facilities and Projects Director at Glenmorangie, said: “We’re putting sustainability at the heart of the expansion of our Alba bottling plant. Our capacity will be increasing with new high-speed lines being installed over the coming year.

“At the same time, we have installed solar panels to reduce our current reliance on the national grid. This also gives us a clear pathway to maximise green energy across our site as we work towards our sustainability targets.”

Peter Nelson, Operations Director at Glenmorangie, added: “The Glenmorangie Company has ambitious plans for growth while we are fully committed to building a sustainable future for our business and communities across Scotland.

“We have key projects already in motion or completed at our sites including the solar array at Livingston, the installation of an anaerobic digestion plant in Tain as part of our Dornoch Environmental Enhancement Project (DEEP).

“We also continue to work in partnership with other Distilleries on new hydrogen energy trials with many more projects in the pipeline to achieve our 2040 net zero ambition.”

No future for McVitie’s Tollcross

“Honest answers” needed from pladis after proposals for future rejected

Following an announcement this morning by the McVitie’s Tollcross owner pladis, confirming its rejection of counter-proposals to maintain production and intentions to proceed with closure, GMB Scotland Senior Organiser Hazel Nolan said: “It seems clear now that pladis had no intention of engaging in good faith over the future of Tollcross – General Manager Jim Cuthbert told us they “expected more” from the counter-proposals but offered no specific comment on what “more” would look like.

“That’s not good enough. If pladis are walking away from this community after nearly a century of production, and after eighteen months of constant manufacturing during this COVID-19 pandemic, the very least the workforce deserve is honest answers.

“That honesty is also needed for the members of the Action Group because if a firm like pladis no longer sees Scotland as a viable place to do business, then everyone needs to understand why and what must be done to prevent further manufacturing decline.” 

Ellesmere Port to support sustainable mobility through the production of all-electric vehicles

  • Ellesmere Port to become Stellantis’s first manufacturing site dedicated to battery electric LCV and passenger car models for Vauxhall, Opel, Peugeot and Citroën
  • Industrial performance improvements as a result of strong cooperation between the company, the Unite Union and, most importantly, the workforce
  • Stellantis £100million investment supported by the UK government to secure an all-electric future for the plant
  • Ambition for Ellesmere Port plant to be carbon neutral by mid-decade
  • Ellesmere Port to support Stellantis Europe’s leading LCV position
  • Vauxhall continuing its tradition of manufacturing vehicles in the UK, which started in 1903

Stellantis announces today a £100million investment in Vauxhall’s Ellesmere Port manufacturing plant to transform the site for a new era in electric vehicle manufacturing. 

Ellesmere Port will become the first Stellantis plant to produce a solely battery-electric model, in both commercial and passenger versions, by the end of next year, for Vauxhall, Opel, Peugeot and Citroën brands and for both domestic and export markets.

This dedication to battery electric vehicles will go towards achieving the UK Government’s decision to stop sales of pure petrol and diesel engined vehicles from 2030.

Stellantis investment in Ellesmere Port will leverage the performance improvement actions that have been made possible thanks to a collaborative process between the company, the Unite the Union and based on the workforce’s drive to transform their plant.

Stellantis strong willingness to ensure a sustainable future for Ellesmere Port has been consistently supported by the UK Government, the Cheshire West and Chester Council, Cheshire and Warrington Local Enterprise partnership and Chester College.

Carlos Tavares, Chief Executive Officer at Stellantis, said: “Performance is always the trigger for sustainability and this £100million investment demonstrates our commitment to the UK and to Ellesmere Port.

“I particularly want to thank our highly skilled, dedicated workforce for their patience and contribution; we never let them down.  Equally, I want to thank our partners the Unite Union for their open mind set and strong cooperation and, of course, the UK Government for their continued support.

“Producing battery electric vehicles here will support clean, safe and affordable mobility for the citizens. Since 1903 Vauxhall has manufactured vehicles in Britain and we will continue to do so.”

UK Government, Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, said: “Ellesmere Port’s proud tradition in auto manufacturing will continue for many years to come thanks to today’s investment.

“Stellantis’ decision to double down on their commitment to this site is a clear vote of confidence in the UK as one of the best locations globally for competitive, high-quality automotive production.

“Today’s decision will not only power Ellesmere Port into a clean future, but will secure thousands of jobs across the region in the supply chain. In this global race to secure electric vehicle production, we are proud to support Britain’s auto sector in this crucial transition as we work to build back better.”

The plant at Ellesmere Port will celebrate its 60th anniversary next year, having been built in 1962, and produced its first car, the Vauxhall Viva, in 1964.  Since that time, it has produced subsequent generations of the Vauxhall Viva, the Vauxhall Chevette and then each generation of the Vauxhall and Opel Astra.  In total, since 1964, it has built over 5.2 million vehicles. 

This new era of manufacturing will see a transformation of the Ellesmere Port plant “fit for the future”, with a new body shop, upgraded general assembly, a compression of the site area and the creation of an on-site battery pack assembly.  In addition, there will be further support to enable a pathway to carbon neutrality for the plant by the middle of this decade.  The plant aims to be 100% self-sufficient for electricity and work will commence imminently on potential wind and solar farms. 

Stellantis has also announced the intention to consult on further investment into the Ellesmere Port site with the creation of a new UK parts distribution centre.

From later next year, Ellesmere Port will build the following all-electric vehicles:

Electric LCVElectric Passenger Car
Vauxhall Combo-eVauxhall Combo-e Life
Opel Combo-eOpel Combo-e Life
Peugeot e-PartnerPeugeot e-Rifter
Citroën e-BerlingoCitroën e-Berlingo

These light commercial vehicles, and their passenger car variants, are all powered by a 100kW (136hp) motor with a 50kWh lithium-ion battery.  They are able to be charged at up to 100kW and take just 30 minutes to charge from 0% to 80%.  Under WLTP conditions, they are capable of up to 174 miles of range.

Stellantis is the LCV market leader in Europe and, in the UK, Vauxhall leads sales in the fast growing all-electric LCV segment.

Vauxhall, Opel, Peugeot and Citroën brands have already committed to each offering all-electric versions of their entire respective van model ranges before the end of 2021.  Fiat Professional is also committed to offering electrified and alternatively fuelled versions across its van range.

With rising LCV usage in urban areas, partly due to the growth in demand for online delivery services, these zero-emissions-in-use vans will make a significant contribution to reducing emissions in towns and cities across the country.

The passenger car version will enable families to enjoy a “zero emission” active life with up to seven seats, benefitting from a modern high-tech interior, with great levels of comfort and adaptability and interior space, premium comfort and smart safety features.

UK broadcasters to introduce industry-wide guidance for producing TV safely during Covid-19

ITV, BBC, Sky, Channel 4, Channel 5, STV, ITN, the Association for Commercial Broadcasters and On-Demand Services (COBA) and Pact have joined forces to introduce new industry wide guidelines for producing television safely in the weeks and months ahead.

The guidelines are intended to enable a return to production for the television industry.

This guidance covers the broad range and scale of all TV programme making in every genre for TV and is complementary to the forthcoming British Film Commission guidance on managing the risks associated with film and high-end TV drama production.

In the new guidelines, the number one priority remains the safety and well-being of production teams and those who work with them.

The guidance has been produced through a collaboration of cross industry experts in this area along with external expertise provided by Dr Paul Litchfield CBE. 

The broadcasters have also worked with First Option, safety consultants to the media and entertainment industry, to devise this approach as well as liaising with union representatives and the Health and Safety Executive.

The guidance has also taken careful note of the recent government advice (https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19) on the safe return to work.

The expectation is that the guidance will evolve over the coming months as the lockdown is eased, as government advice evolves and as TV productions adapt to the new challenges posed by the Covid-19 risk and provide a framework the entire industry can work within.

The full guidance is attached (see below). In summary, the guidance details six areas that producers, in conjunction with the commissioning broadcaster, must consider when planning to produce during Covid-19. They are:

●       Specifically consider people at higher risk of harm

●       Heighten precautions for everyone at work

●       Reduce the number of people involved

●       Consider editorial ‘on camera’ requirements

●       Consider mental health and wellbeing

●       Feedback loop

The guidance also lays out the key areas to consider when assessing risk on productions and suggests controls to consider (detailed in the attached guidance). They are:

●       Travel: Try to minimise travel and follow social distancing principles within travel arrangements, wherever possible.

●       Location: Consider the physical capacity of the space given the requirements of social distancing along with the provision of key hygiene facilities.

●       Work Activities: Consider the activities that people are going to need to undertake across roles on production and if these can be adapted or changed to reduce risk.

●       Work Equipment: Work equipment is key to TV production from cameras and headsets to edit suites. Good hygiene and managing potential issues with touchpoints should be addressed.

●       Work Patterns: Work patterns may enable you to have small groups (cohorts) of people who don’t come into contact with other groups.

●       Rest Areas: Rest areas are very important but may need some reconfiguration and planning around breaks to ensure rest areas are as safe as possible.

●       First Aid and Emergency services: Emergency services are under great pressure so may not be able to respond as quickly as possible alongside this Coronavirus (Covid-19) poses a potential risk to first aiders.

●       Masks, Gloves and Other Personal Protective Equipment: Use of PPE is very much a last resort and should only be considered when all other forms of control have been considered and/or implemented. In would not in general be appropriate to source medical grade PPE. The very limited exceptions to this might be when filming in higher Covid-19 risk settings such as hospitals which would only be at the invitation of the relevant hospital authorities.

●       Mental Health: The Covid-19 risk and the response has had a potential Mental Health impact for those working on productions.

Culture Secretary, Oliver Dowden, said: “Great British television is keeping us company throughout the crisis, and I’m keen to get cameras rolling as soon as it is safe. Our creative industries are Britain’s global calling card and this is a significant step forward in getting our favourite shows back into production.”

Carolyn McCall, Chief Executive, ITV said: “ITV has been at the heart of informing, entertaining and connecting the UK through the Covid-19 crisis. Our production teams are now working hard to bring many more much loved shows back for viewers.

“This requires really innovative thinking, but above all, the safety and well-being of all those who work on the programmes is paramount. Working with partners across the industry, and with the support of DCMS, we have created clear guidelines to give producers a framework within which they can ensure that their production is safe.”

Tony Hall, BBC Director-General, said: “Everyone across the TV industry wants to get production back up and running. Recent weeks have shown just how important shows are to the public.

But we can only move forward with the right safety measures in place. This guidance is an attempt to get that right. Clearly we will keep it under review. We have, as an industry, already learnt a lot about how we can deliver programmes and we will all put that into practice”.

Alex Mahon, Chief Executive, Channel 4 said: “I’m phenomenally proud of the role Channel 4, alongside our production partners, has played over the last two months to help navigate audiences, particularly young and hard-to-reach viewers, through the Covid crisis.

Unlocking the television production sector in a safe way will be vital to continuing to ensure we can both continue to serve our audiences and help sustain the livelihoods of those in the industry – and I’m pleased that we’ve been able to work in partnership with other broadcasters, DCMS and PACT to create this innovative new framework.”

Simon Pitts, CEO STV (above) said: “STV’s continued delivery of public service news and current affairs throughout the Coronavirus crisis demonstrates our ability to produce programming safely, incorporating stringent new safety measures.

“Nations and regions producers like STV Productions play a vital role in driving both the UK’s world-leading production sector and the local creative economy and – working closely with the Scottish Government – this protocol can provide a vital framework for more of our colleagues, across a broader range of production, to return to work with the same level of confidence about their safety and wellbeing.

Gary Davey, CEO Sky Studios, said: “This guidance provides production companies and broadcasters with a shared set of principles to keep staff, cast and crew safe across a range of productions.

We will continue to work closely with our international partners, share best-practice and continuously review and evolve the guidelines as we return to production.”

Ben Frow, Director of Programmes, ViacomCBS Networks UK said “The UK is a global leader in content production and these guidelines will help pave the way to getting our sector safely back up and running, as we begin to navigate a ‘new normal’.

“Through a consistent and collaborative industry approach, we can work together with suppliers to reframe the parameters of programme-making during this challenging time, putting people’s wellbeing at the heart of the process.”

Anna Mallett, CEO, ITN said: “Our teams in ITN have pioneered new ways of working to keep the news on-air and crucially, to keep staff, freelancers and contributors safe during this time.

We’ve been able to share our experiences and protocols to help draw up these guidelines for the wider industry. Our documentary team have found ways to ensure safety and creatively maintain production on a number of programmes filmed in contributors’ homes and on location.”

Adam Minns, Executive Director, COBA said: “Like the rest of the sector, COBA members are keen to renew production activity as soon as it can take place safely and responsibly.

“We hope this guidance will be an important step in getting the TV sector back to what it does best: making world class content.”

John McVay, Pact CEO, said: “This guidance from all the major commissioning broadcasters in the UK is a very helpful first step to getting the industry back working and taking forward the recovery”.

Industry wide – TV Production Guidance 18052020