What the 2021 Budget means for the creative industry
What does the 2021 Budget means for the creative industry?
Following on from our article "what self-employed professionals should know about the 2021 budget", we will be delving into what the budget means for the Creative Industry and Creative Freelancers. As an accountant specialising in creatives, how the 2021 Budget will support creative industry professionals back to the full prosperity of pre-covid years was highly anticipated.
This article will cover some of the main areas of the 2021 Budget announcement that creative industry professionals and businesses should know about.
We are also covering several other areas of the budget in the articles below:
How the 2021 Budget will affect High-Net worth individuals
What the 2021 Budget means for Corporates
Areas of the 2021 Budget that are aimed at supporting minorities
How the Budget will affect mutual funds and the stock market
The 2021 Budget and the Property Market
How is the Budget going to help the creative industry?
The creative industry was one of the worst-hit by covid-19, with around £74billion and 2.7 jobs in 2020. Therefore many have been waiting for the 2021 Budget to lay out how it will pave the creative industry back to health.
£300million to be injected into the Cultural Recovery Fund
£300million is to be added to the £1.7billion Cultural Recovery Fund.
The Cultural Recovery Fund will provide financial support for music venues, museums, independent cinemas, galleries, theatres and heritage sites throughout the UK.
The Culture Secretary, Oliver Dowden, said
"It's a relief we can look ahead now, so this funding is not just about survival, but planning and preparing for reopening theatres, galleries and gigs."
Although many are happy with the creative industry cash injection- there is a large call out from the community for the fund to be extended to freelancers.
£90million injected into National Museums
An additional £90million to be invested into national museums to support them until their reopening in mid-late May.
£18.8 million to be injected into community projects
£18.8million to be invested in cultural community projects.
These projects include £5million to transform part of Wakefield High Street into a community library, museum and gallery space.
Scotland, Wales and Northern Ireland will receive an additional £77million to provide cultural groups with similar support.
Film and TV Production Restart Scheme extended.
The Film and TV Production Restart Scheme have been extended until December 2021. With a £500million fund, it has accepted 160 qualifying productions to date, and according to the government, saved 20,000 jobs.
"Elite Point-Based Visa" and Reform of the Global Talent Visa
Research has shown that the Creative Industries' gaps are more likely to be in higher-level occupations' such as architects and graphic designers. Part of the reason being is thought to be due to inadequacies in the current immigration system.
The 2021 Budget announced an elite points-based visa and a reform of the Global Talent Visa. These policies aim to attract and retain "the most highly skilled globally mobile talent". Depending on how these reforms are designed, they may support the creative industries demand for change.
Creative industry listed in Levelling-Up Fund
Creative Industry included in Levelling-Up Fund.Maintaining and expanding the UK's world-leading portfolio of cultural and heritage assets included as a priority.
Details of plans:
- Upgrading and creating new cultural and creative spaces such as sports or athletics facilities, museums, art venues, theatres, libraries, film facilities, prominent landmarks or historical buildings, parks or gardens.
- New, upgraded or protected community hubs, spaces and assets (and associated green spaces)
- Acquiring and refurbishing key cultural and heritage sites, including hotels and historic buildings
The Recovery loan scheme
The Recovery Loan Scheme will be available to creative industry businesses. The new loan scheme is designed to support UK business access to finance as they grow and recover from the disruption of Covid-19.
The Towns Fun extended to a further 45 Areas.
£1billion to be invested in 45 towns to help the country recover from Covid-19. The fund will be dedicated to cultural and infrastructure projects.
For further information on support available to freelancers, the 2021 Budget for Self Employed article
No Government-backed Insurance Scheme announced yet.
A Government-backed insurance scheme is yet to be announced.
Without which many creative companies will not be able to stage events due to the risk of losses from cancellations as a result of Covid-19
