The UK has always been a real trailblazer when it comes to creativity, from blockbusters and grassroots music travelling across the globe, to theatre productions and groundbreaking exhibitions.
However, the Coronavirus outbreak has had an absolutely monumental impact on the industry, recent research goes as far to suggest that the sector is wavering on the edge of a ‘cultural catastrophe’, with hundreds of thousands of jobs on the line and a projected loss of £74bn this year alone. Our region is expected to bare the brunt of the force too, having one of the biggest losses outside of London.
Therefore, the Government’s £1.57bn support package will be a sigh of relief for many creative businesses across the region and the wider country. Hopefully providing a lifeline to cultural institutions across the country.
What does the support package entail?
The support package is the ‘biggest one-off investment’ in the UK’s creative sector. It will be made up of £880m in grants and a further £270m in repayable loans, both of which you can apply for through industry bodies.
The package will help everything from independent cinemas, galleries and theatres – the latter of which have been hit particularly badly, with an expected £3.1bn drop from 2018 to the end of the year.
It’s great to see that the Government is taking steps towards helping the industry, given its vital importance to our economy and culture.
What can we expect going forward?
Even though the support package will undoubtedly act as a lifeline for numerous creative businesses across the country, the industry still faces challenges in the months ahead.
With over 400,000 jobs at risk in the imminent future, the support package alone won’t be able to save every job at stake. This is something that employers will have to keep in mind in the coming months and difficult decisions will have to be made.
Furthermore, £1.57bn sounds like a huge amount of money, there will be masses of organisations looking for financial help, given the current climate.
This may mean that some businesses will have to look elsewhere for support to help ease their cashflow…
Other support measures on offer
Whilst the Governmental support package might be the right answer for you, it’s still worth exploring all of that options you have at hand. Creative Industries Tax Relief claims could be the saving grace you’re looking for, and unlike loans under the support package, they don’t have to be paid back.
The Creative Industries Tax Reliefs is an incentive built up of 8 different sub-sectors, and can significantly lower your company’s Corporation Tax liability. This could be the buoyancy aid that your company is looking for, during these uncertain times.
However, it is important to keep in mind that Creative Industries Tax Relief do class as a form of State Aid. So, if you have already utilised the governmental support measures on offer, such as the furlough scheme (Coronavirus Job Retention Scheme), then this may affect your claim.
Navigating your way through the process of claiming for tax relief, in conjunction with other forms of State Aid, can become very complex, very quickly, so we would always advise that you consult a specialist on the matter.
How can we help?
We understand the challenges that the creative industry is facing in the current climate. Our Tax Incentives and Reliefs team are on hand to support you through these uncertain times.