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Creative Industries: Tax Relief

Volume 743: debated on Thursday 11 January 2024

2. Whether her Department has made an assessment of the potential impact of tax relief on the growth of the creative industries. (900888)

Let me begin by welcoming the Minister back to her place. Since 2012, the Conservative Government have introduced tax reliefs for the creative industries year on year. That is one of the reasons why the creative industries are growing at twice the rate of the rest of the economy, and why they are world leading. The Labour party opposed every single one of those tax reliefs, and despite its warm words it offers no substantive action.

As my right hon. and learned Friend says, since we came to office we have introduced a number of tax reliefs that have supported children's television, video games, production, galleries, orchestras, theatres and museums. It is for the Chancellor to decide on tax policy, but can my right hon. and learned Friend tell us what more she can do to make this go further, to ensure that we remain one of the world’s leading production venues?

We have indeed introduced many tax reliefs, and since we came to office I have instigated and backed the introduction of tax reliefs and other support for the sector. Independent film making has been supported with more than £60 million of Government and national lottery funding, and I have recently spoken to representatives of the independent sector to establish how we can provide further support. However, as my hon. Friend has pointed out, matters of tax are ultimately matters for the Chancellor.

I have a suggestion for the Minister. When I met several film, television and advertising companies in my constituency recently, they pointed out that Malta and Mauritius have a 40% rebate which also covers commercials, and that Ireland will be following suit with a 40% rebate on reality TV and game shows. These are the bread-and-butter products of the industry, and they have a huge impact on local areas where filming takes place. The UK is falling behind in this respect. What discussions is the Secretary of State having with the Treasury and other colleagues about the matter?

I assure the hon. Lady that I have regular discussions with the Treasury and the industry about how we can continue to support this vital sector. We are not falling behind. We are world leading, and we need to maintain that competitive edge. Our screen sector tax reliefs are estimated to have delivered over 200,000 new jobs and more than £13 billion in economic output.