Budget summary, just the parts relevant to the arts, digital and creative industries

Just those parts of today’s Budget that are relevant to arts, creatives and the creative industries. First from the speech in the Commons, and then from the 128-page supporting Plan for Growth document…

Commons speech:

* “a moratorium exempting all businesses employing fewer than ten people – and all genuine start-ups – from new domestic [UK business] regulation [and this will last] for the next three years.”

* “we have agreed with the banks a 15 per cent increase in the availability of credit to small businesses.”

* “Enterprise Investment Scheme. […] From April this year, income tax relief [for investors using this scheme] will increase from 20 per cent to 30 per cent. [and] Next year we will double the amount that any individual can invest through the EIS, increase the size of company that can qualify for investment – and raise the limit on the amount that can be invested in a company by 400 per cent.”

* “From 6 April this year I am doubling the size of Entrepreneurs Relief to £10 million.”

* “the current rate relief holiday for small businesses [was due to] end in October this year. [but] I will extend the rate holiday for small businesses for another year – to October 2012.”

* “From April this year the small companies Research and Development Tax Credit will rise to 200 per cent – and from next year it will rise again to 225 per cent.”

* “We also want to encourage manufacturers to invest in the latest machinery and technology. So I propose to double the limit on the capital allowances for short life assets from four years to eight years.”

* “the allowance for the renovation of business premises in assisted areas – which was due to expire next year – we will extend for a further five years.”

* “the new Enterprise Zones we launch today. [in which] Businesses will get up to 100 per cent discount on rates, new superfast broadband and the potential to use enhanced capital allowances in zones where there is a strong focus on manufacturing.” “[these will initially be in] Birmingham and Solihull; The Black Country; Derbyshire and Nottinghamshire;” […] A further ten Enterprise Zones will be announced in the summer.”

* “The Government is committed to funding new University Technical Colleges which will provide 11-19 year olds with vocational training that is among the best in the world.” […] “To date the Government has announced that it will fund 12 new University Technical Colleges. I can tell the House we will provide funding to double that number to at least 24.”

* “[Youth Apprenticeships raised] to 100,000 places over the next two years. [including] 10,000 more higher level apprenticeships”

* “…dramatically simplify the administration of Gift Aid. Instead of asking charities to submit a written record of every donation made, we will by 2013 pay for a much easier online system.” […] “The Gift Aid benefit [to donors] limits will be increased from £500 to £2,500 so that charities and museums can say thank you properly.”

* “We will consult in the coming year on how to encourage the donations of pre-eminent works of art and historical objects to our nation in return for a tax deduction.”

* “we will introduce from April next year this major change to our inheritance tax system. If you leave 10 per cent or more of your estate to charity, then the Government will take 10 per cent off your inheritance tax rate. Let’s be clear. No beneficiaries will be better off. Just the charities. To the tune of £300 million.”

* “We will introduce a new scheme where Gift Aid can be claimed on small donations, up to a total of £5,000 a year per charity, without the need for donors to fill in any forms at all. […] 100,000 charities will benefit to the tune of £240 million.”

* from April next year the personal tax allowance will increase […] to £8,105. […] And [I] set this country the goal that no one earning less than £10,000 should be caught in the income tax net.” [this is likely to be useful to many creatives who work part-time]

Plan for Growth:

And here are further details / additional announcements snipped from the supporting 128-page document Plan for Growth

* “The Government will reduce the licensing burdens for live music, which will include small music venues. […] The Government will also bring forward proposals to reduce licensing burdens on other forms of entertainment such as theatre, cinema and indoor sport, and expects to make changes by the end of the year.”

* R&D tax credits and the Enterprise Investment Scheme will be available to the British film industry [no mention of the videogames industry in this respect].

* “The Government will support the establishment by industry of a Creative Industries Council, which can provide a voice for the sector with the financial community and coordinate action on barriers to growth.”

* “expand ‘flexible’ advanced and higher apprenticeships which suit the freelance business models often seen in the digital and creative industries, and will provide new grant funding for [such] SMEs delivering advanced and higher apprenticeships.”

* encourage universities and business to create free-floating business modules for university students in the [digital and creative industries] sector, so that they get the business skills they need alongside technical and creative skills.

* “modernise the system of copyright licensing to minimise the transaction costs that inhibit innovation and growth, and a proposal to enable access to orphan works.” […] “implement as soon as practicable those [proposals on this topic] which will demonstrably contribute to future growth.”

* “Digital and Creative Industries are likely to particularly benefit from this new [higher apprenticeships] funding, given the high number of SMEs in this sector, and the capacity within the industry to generate higher level apprenticeships.”

* “a new £75 million programme of targeted support to help smaller employers access Advanced Level and Higher Apprenticeships. […] covering some of the costs associated with setting up new training frameworks and putting in place training arrangements with other businesses, including large companies in the supply chain.”

* “Removing barriers to cross-border online retailing in the EU single market is a Government priority. To increase cross-border trade the Government is committed to addressing the uneven application of the E-Commerce Directive”

* a passing reference to digital and creative industries as a “priority growth sector” (page 102)

* “The major UK banks will make £190 billion of new credit available to businesses in 2011, of which £76 billion will be available specifically for SMEs.”

* “measures to open up public procurement to small and medium-sized businesses (SMEs) […] an ambition for 25 per cent of total government contracts to be delivered by SMEs”

* “eliminating Pre-Qualification Questionnaires (PQQs) for all central government procurements under £100,000”

* “The Government has encouraged business angels (high net worth individuals that invest in local businesses) and the Government’s SME investment arm, Capital for Enterprise Ltd, to put together a bid to the Regional Growth Fund for a Business Angel Co-investment Fund. If successful, this will support Angel investments into high growth potential early stage SMEs, particularly in areas most affected by public spending cuts.”

* [Enterprise Zones to have] “lower taxes and low levels of regulation and planning controls”

* a 100 per cent business rate discount worth up to £275,000 over a five year period for businesses that move into an EZ [Enterprise Zone] during the course of this Parliament […] the returns from EZ growth [to be] reinvested locally; [and, with Enterprise Zones] the Government is seeking to support real growth opportunities, not remedy local dereliction.”

* [government to provide] “companies with local intelligence on high value projects overseas and intensive support to win these deals [via a] a network of attaches covering the key global markets […] significantly increasing the level of support to IP-intensive businesses to ensure they can exploit their IP domestically and overseas” […] deliver a new package of support through UKTI to help SMEs with an ambition to break into overseas markets” […] extend the range and eligibility of products offered by the Export Credits Guarantee Department” […] “There is evidence that UK businesses sometimes find it difficult to control the use of their IP [intellectual property, copyrights etc] overseas. The new IP attaches will focus on promoting and protecting UK business interests”

* “The Government is launching the Export Enterprise Finance Guarantee (ExEFG) and promoting its use to SMEs.”

* “all regulations identified as burdensome [on small businesses] would be removed unless good reasons are given for them to stay;”

* “Government will roll out a network of Business Coaching for Growth services across England from January 2012. This initiative will target SMEs with the potential to achieve rapid and significant growth […] It will target up to 10,000 businesses per year and go live from January 2012”

* “taking action to constrain ‘no-win, no-fee’ legal services”. [which have led to some absurd “health and safely” paranoia, especially in the public-funded arts]

* “fund nine new university-based Centres for Innovative Manufacturing by 2012;” [potentially benefiting the ceramics industry in Stoke-on-Trent, if one can be sited here? Although the aim is to help “to open up new industries and markets in growth areas” in high-tech opportunities, rather than support existing manufacturing output.]

* “an accelerated launch of the new enhanced Manufacturing Advisory Service with an additional £7 million to deliver its services over the next 3 years [again, this seems likely to be of interest to our ceramics industry] “The Government has [already] committed £50 million over three years from April 2012 to provide an enhanced service through MAS, tailored to suit the needs of the individual business and the local economic environment.”


2 Comments on “Budget summary, just the parts relevant to the arts, digital and creative industries”

  1. […] And a further summary of the creative industries bits from the 128-page supporting document, here. […]

  2. […] About Budget summary, just the parts relevant to the arts, digitital and creative industries […]

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