U.K. Budget Analysis: Tax Credit Increase for VFX Spend and Studio Investment But Grassroots Music Venues Lose Out
variety.comK.J. Yossman The Labour Party’s first budget has brought mixed results for the U.K. entertainment industry. While the film and TV sector welcomed an increase in the tax incentive for VFX spend, grassroots music venues have been hit by a huge reduction in the amount of tax relief they enjoy, potentially putting a number at risk.
U.K. Screen, which represents the country’s VFX, post and animation industries, have suggested the change could result in a spend increase of 45% — an extra £175 million per year – and create over 2,800 new jobs.
Reeves also committed £3 million towards a program aiming to introduce school children to careers in the arts, £40 million into apprenticeships with a new “growth and skills levy” and continuing funding for the U.K.
Games Fund and Create Growth Programme. Chancellor of the Exchequer Rachel Reeves used the fall budget to confirm that from April 1, 2025 spend on VFX in the U.K.
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