The scale of this support underscores both the sector’s importance to the economy and the Government’s intent to keep Britain competitive on the global creative stage.

Policy Context: Government Recognition of a Growth Industry

Mandy Girder, Partner and Media lead commented:

HMRC’s latest statistics show the Government recognises how important the UK’s creative industry is. The sector has received a record £2.4 billion in tax relief and expenditure credits for the 2023/24 financial year. This is a 10% increase on the previous year, underlining the industry’s growth and resilience.

This rise in relief is no accident. Over the past decade, the UK has deliberately positioned itself as a hub for global creative investment. Tax incentives have played a central role, making the UK an attractive base for international studios, production houses, and gaming companies.

Where the Money Is Going

High – End TV productions remained the single largest beneficiary, accounting for almost half of all reliefs (£1.1bn), reflecting strong inward investment and the continued success of streaming content.

Theatre and Orchestra companies saw increases, with amounts paid out surging by 65% and 39% respectively, boosted by enhanced government relief rates which have now been made permanent.

Video Games continued their strong growth trajectory, with reliefs up 12%, further demonstrating the UK as a global leader in the sector. So far, £8m has been paid out in VGEC (Video Games Expenditure Credits).

Looking Ahead: Independent Film in Focus

From April 2025, there has been the introduction of the new Independent Film Tax Credit, this is expected to revitalise British film, particularly independent productions.

For smaller studios and independent filmmakers, this could provide vital financial lifelines, helping them compete with the deep-pocketed global streaming platforms. It also suggests the Government wants to balance blockbuster inward investment with protection and support for homegrown cultural output.

Why It Matters for Businesses and Individuals

The creative industries are not niche: they employ over two million people and generate more than £100 billion for the UK economy each year. Beyond the headline numbers, the sector sustains supply chains across hospitality, retail, and technology. When a major TV series is filmed in a UK city, it brings with it jobs, tourism, and global attention.

For individuals, the continued support of theatre, orchestras, and independent film helps preserve cultural diversity and ensures creative talent has the resources to flourish. For businesses – particularly in production, gaming, and live entertainment – tax relief can make the difference between projects being viable or shelved.

Potential Outcomes and Considerations

The record level of relief is likely to further cement the UK’s global reputation in creative sectors, attracting overseas investment and talent. However, reliance on government incentives brings risks: any future scaling back of reliefs could impact momentum. In addition, competition from other markets such as Canada, Ireland, and Eastern Europe remains fierce.

For businesses, the key is to remain agile – maximising current reliefs while planning for an uncertain policy environment.

What You Should Consider/Do Next

Review eligibility: Businesses in creative sectors should ensure they are fully claiming available reliefs, including newer schemes like the Video Games Expenditure Credit.

Plan for 2025: Independent filmmakers should prepare now to take advantage of the forthcoming Independent Film Tax Credit.

Factor in competition: Global competition for talent and capital means firms must pair financial incentives with strong creative offerings.

Monitor policy shifts: Tax relief regimes can change. Businesses should keep close watch on HMRC updates and budget announcements to safeguard long-term planning.

Would you like to know more?

If you have any questions, please get it touch with your usual Blick Rothenberg contact or Mandy using the form below.