Reel Relief: Government finally rolls out blockbuster business rates relief to drive growth in creative industries
At the Spring Budget 2024, the Conservative Government announced it would continue to support the UK’s creative industries and would introduce a business rates relief for eligible film studios in England worth around £470m over the next ten years.
The expectation was that around 40 existing studios in 25 local billing authorities would be eligible for Film Studio Relief, along with any new studios built which might be eligible. The relief would enable studios to receive a 40% reduction (inclusive of transitional relief) on gross business rates bills until 2034. The calculation would see the value of any transitional relief being deducted from the value of the film studio relief, which meant any eligible studio’s final bill would be no more than 60% of its gross bill.
The scheme was referred to the Subsidy Advice Unit in December 2024 to report on the evaluation of HM Treasury’s Assessment of Compliance of its proposed scheme, with the requirements set out in the Subsidy Control Act 2022.
That report was published but did not give a green or red light to the scheme. However it has finally been announced that from today (17 February), Local Authorities can begin implementing local schemes and awarding the tax relief to help filmmakers kickstart their journeys to producing the country’s next box office hits, cult classics and major rom-coms.
Details may be found here.
Film studios will not need to apply for the relief, as Local Authorities will award it to eligible properties. If in doubt, studios should contact their local authority, but critically, the relief will be available on properties valued by the Valuation Office Agency (VOA) as film studios.
It has been confirmed that the 40% reduction is inclusive of Transitional Relief. Studios will also remain eligible for Improvement Relief in addition to this relief. This will mean that no ratepayer will face higher business rates bills for 12 months because of qualifying improvements to a property they occupy.
