U.K. VFK Sector Gets Budget Boost

The new U.K. government’s first Autumn Budget includes an increased tax credit on VFX spending.

The tax credit on UK VFX spend increases to 29.25 percent net. Responding to the Budget statement, the British Film Commission’s chief executive, Adrian Wootton, noted: “U.K. film and TV is globally admired, and a key sector driving economic growth. Our VFX sector is one of the jewels in the U.K. industry’s crown, with a depth of creative and technical expertise. But these are competitive times. Productions are looking globally for the best talent and incentives to guide their investment decisions. Any new measures must address intensifying global competition and help us put our best foot forward. Today’s confirmation of the VFX tax credit increase doubles down on U.K. strengths and will drive up investment. It is not only welcome, but essential to support our sector and wider U.K. growth.”

Costs associated with Generative AI are also being included in the enhanced tax credit. Wootton noted: “We’re delighted that HM Treasury has listened to industry feedback on Generative AI, and included these costs in the overall VFX tax credit enhancement. The BFC pressed for this in our consultation response and we believe this will play an important part in keeping our VFX sector future-proofed and globally competitive.”

WGGB The Writers’ Union also responded positively to the new Budget, with General Secretary Ellie Peers noting, “A Budget focussed on economic stability and protecting working people is welcome, as is the recognition of our world-leading creative industries as one of the pillars of the Government’s industrial strategy, with a pledge of £15 billion in support over the next five years. We welcome the Government’s plan to work with trade unions in this area, and we look forward to more detail and meaningful engagement with that work on behalf of our members.”

Peers added, “And as we outline in our manifesto Putting writers at the heart of the story, tax and benefit reform specifically related to freelancers, action on late payments and increased accountability and transparency in arts funding are just some of the measures required to ensure writers in the U.K. get the fair pay and treatment they deserve, as well as protections on copyright and AI in an industry that is sustainable. Our work with policy-makers on this will continue.”

The Department for Culture, Media and Sport (DCMS) will receive funding of £2.3 billion in 2025-26, which will be used toward initiatives such as Create Growth and the UK Games Fund, as well as an expansion of the Creative Careers Programme