In a monumental move to bolster the creative industries, the UK government recently announced a significant new business rates relief initiative for film studios. As part of the Spring Budget released on 6 March 2024, the Chancellor highlighted the commitment to supporting the arts by introducing a financial aid program that promises around £470 million in relief over the next decade.
Under this new scheme, eligible film studios across England will benefit from a substantial 40% reduction on their gross business rates bills until 2034. This reduction includes transitional relief, ensuring that the final bills will not exceed 60% of the original gross amount. Such a measure acknowledges the crucial role of the creative sectors in driving economic growth and cultural enrichment.
The relief is also backdated to 1 April 2024, providing immediate financial benefits. Local authorities in England are set to be fully compensated for any potential loss of income due to this initiative, with additional funding allocated to cover administrative and IT expenses related to implementing the relief.
For film studios, this financial boon opens up new avenues for investment in technology, talent, and infrastructure, enhancing the UK's appeal as a premier destination for film production. The British Film Commission has warmly welcomed this initiative, recognising it as a vital step in sustaining the UK's competitive edge in the global entertainment industry
At Commercial Property Advisors (CPA), we understand the significance of such developments, not just for the film industry but for all sectors influenced by changes in business rates legislation. Our expertise in managing business rates ensures that our clients are always ahead of the curve, fully leveraging such fiscal incentives to optimise their operations and financial planning. We are actively reviewing all councils in England and Wales to identify the qualifying criteria for this new relief, which is yet to be fully established. Our team is dedicated to keeping our clients informed and prepared to take full advantage of this opportunity as soon as the specific details are clarified.
CPA, regulated by the Royal Institution of Chartered Surveyors (RICS), is committed to providing detailed, accurate assessments and robust appeals for business rates. We employ a data-driven approach using our extensive database to ensure each client's case is handled with the utmost precision.
For entities in the creative industries and beyond, navigating the complexities of business rates can be daunting. With our No Win, No Fee model, CPA stands ready to assist studios and other businesses in maximising their savings without any upfront cost. Our dedicated account managers ensure personalised service, aligning our efforts directly with your financial success.
Contact CPA today to understand how this new tax relief could benefit your business and to discuss your specific needs with our expert team. Let us help you ensure that your business rates reflect fair and accurate valuations, empowering your continued growth and innovation in the vibrant landscape of the UK's creative sectors.