Page 51

In addition, the freedom of UK-domiciled companies to invest in or buy companies across the EU (and vice versa) has played a part in establishing the UK as an international hub for creative businesses. Concern has been expressed that any ownership or investment restrictions imposed as a result of exiting the EU might damage the global position of the UK’s creative sector. All these factors could negatively impact inward investment when the UK leaves the EU. Creative sector tax reliefs have been key to securing inward investment for the UK. Tax reliefs for film introduced in 2007 have underpinned £8bn of UK expenditure across 1,800 films, including headline projects such as Disney’s investment in the £1bn series of six new Star Wars films being made at Pinewood Studios. Following the extension of these measures to animation and high-end television (2013) and video games (2014), the UK has seen a further £1.5bn spend across 350 projects. Children’s television was made eligible for tax relief in 2015, with data on returns yet to be released. But production companies from sectors including animation and children’s television have reported that tight budgets mean co-production can be the only commercially viable way to get new productions off the ground. Co-production with EU partners can mean projects qualify for valuable financial support such as that provided by Creative Europe. The UK’s ability to sell into EU markets in accordance

with AVMSD quotas can also attract other international investment. The Federation has received reports of UK production companies losing US commissions due to uncertainty as to the UK’s ability to sell into EU markets in the future. This uncertainty might be misplaced but the consequences appear real.

3. New export markets The industry and the government are both committed to developing new export markets. In 2014, UK Trade and Investment (UKTI) set out a strategy for creative industry exports with three goals: - doubling creative industries services exports by 2020 to £31bn (from 2011) - doubling the number of creative industries that export - increasing the UK’s share of the global market for foreign direct investment in creative industries by 50% by 2020. These were ambitious targets, but progress has been made, with growth in creative industry services exports outstripping that of the broader economy. Internationally, world trade in creative goods and services more than doubled between 2002 and 2011, driven by technological shifts. Mobile platforms and streaming services have changed the public’s engagement with video games, film

Brexit Report

49

Creative Industries Federation: Brexit report  
Creative Industries Federation: Brexit report