Film: Business Rates
The question
To ask the Chancellor of the Exchequer, what steps she is taking to help mitigate the potential impact of changes in the level of business rates on film studios in the UK.
Answered by James Murray
At Autumn Budget 2024, the Government announced that it intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. This permanent tax cut will ensure that they benefit from much-needed certainty and support.
The Government intends to fund this by introducing a higher multiplier on all properties with a rateable value (RV) of £500,000 and above – these represent less than one per cent of properties. The Government will confirm the rates for the new multipliers at Budget 2025.
At Autumn Budget 2024, the Government announced that it would proceed with 40 per cent relief for eligible film studios in England on their gross business rates bills until March 2034. As set out in supporting guidance, the government may review the level of relief in the event of significant changes in rateable values at future revaluations. Business rates bills are calculated by applying the relevant multiplier first and so film studios will receive 40 per cent relief on their total liability.
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