On Wednesday 15 March, the Chancellor announced the Government’s Spring Budget for the year. ALCS have assessed the impact of these announcements and here are the key things we want to highlight:

Tax reliefs

We welcome the Chancellor’s acknowledgement of the creative sector’s importance, who said: “Our film and TV industry has become Europe’s largest, while the creative industry is growing at twice the rate of the economy.”

We’re also encouraged by the announcement of increased tax relief rates, providing they result in more opportunities for writers, as well as the promise of wider reform to the system. Our audiovisual writers will be able to continue producing work that puts the UK at the forefront of TV and film production globally, with the tax relief rate going up to 34% for productions. This will particularly support the children’s TV and animation sector, who will be able to access a higher rate of relief (increased from 25% to 39%), allowing those authors to continue creating brilliant content for young people across the UK.

AI

Recent developments in AI technologies mean it is more important than ever that we make sure authors’ works are protected and that they are remunerated for any uses. The Chancellor said: “We’ll work at pace with the Intellectual Property Office to provide clarity on IP rules so that generative AI companies can access the material they need.”

We look forward to working productively with the new Intellectual Property minister and his team to achieve a mutually beneficial, balanced arrangement for all. Government and industry must find the appropriate balance between giving generative AI the data it needs, whilst fairly remunerating the creators who produced that information in the first place.

Barbara Hayes, Chief Executive of ALCS, commented:

“We’re encouraged to see that the Government recognises the contribution that writers have made and continue to make to the UK economy through the creative industries. Their benefit to each one of us and wider society is apparent in how they bring valued truths, ambitious stories and consoling wisdom to illuminate the path forward.

It’s good to see that the children’s TV and audiovisual sector had been given a boost through higher rates of tax credits. This should be a positive development if this tax relief filters down and provides writers with continued opportunities to produce world-leading content.

With announcements made surrounding intellectual property and AI, it’s important to remember that writers form an integral part of the process for generative AI development. We would like to see this contribution recognised by remunerating authors fairly when companies use their work as part of the process of creating new generative AI.

We were disappointed not to receive confirmation that Public Lending Right will be ringfenced and protected from future expenditure cuts but will continue to work to protect this vital income stream for all authors especially during this tough economic time.”

If you would like to get in contact with us regarding the Spring Budget, please email advocacy@alcs.co.uk