The UK’s emergency budget announcement is bad news for the local kids industry with tax relief for the animation industry unlikely, according to media analysts.
The new government, lead by Chancellor George Osbourne, has scrapped plans to offer tax relief to British video game developers, a move that means it is unlikely to offer the same tax incentives to kids producers.
“Today’s announcement that the proposed video games relief has been scrapped is a real blow to a sector which makes a significant contribution to the UK economy. It also makes the prospect of a future tax relief for the animation industry much more remote,” says Liz Brion, head of media tax at Grant Thornton.
This comes after a number of British producers came together to create a new lobbying group – Save UK Animation – to pitch for subsidies similar to those given in France and Canada. Companies including Blue Zoo Productions, Chapman Entertainment, Nickelodeon UK, Aardman and Hit Entertainment created the group to try to lobby new culture secretary Jeremy Hunt and culture minister Ed Vaizey.