HM Treasury, Business Rates Relief for Film Studios scheme

• This scheme will provide a 40% relief on English film studios’ business rates bill until 2034 (whilst also backdating amounts from 1 April 2024). It will be administered by local authorities who will apply the relief against business rates bills with around 40 eligible properties estimated and costs estimated to be £5m in the first year which will rise to roughly £50m by 2028-29. It will operate alongside other means of providing companies with tax credits, such as the Audio-Visual Expenditure Credit.
• Our key takeaways from the Subsidy Advice Unit (SAU) report are:

• • Reports should clearly set out the relevant policy objectives, linking these to any desire outcomes whilst being specific about whether these relate to any specific types of recipients.
  • Detailed explanation should be provided on the economic benefits identified and how these meet the definition of market failure positive externalities as set out in the Statutory Guidance.
  • Reports should include detail on each of the non-subsidy options considered or confirm and justify why this was the only option considered.
  • Evidence should be provided on why, especially where there are other forms of relief available, this level of relief is required to address the identified market failure and how the lack of relief could negatively impact the relevant sector.

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