Animation companies call on Clegg to introduce tax breaks

Taken from www.broadcastnow.co.uk November 11th

" A group of animation companies has written to deputy prime minister Nick Clegg calling for a meeting to discuss incentives needed to make the UK industry competitive globally.

A letter signed by representatives of newly formed trade body Animation UK said the industry was facing “a serious problem”.

One of the signatories, Finger Industries, is based in Clegg’s Sheffield Hallam constituency and recently lost out on a £4m commission. It had been competing with a Canadian company, which was able to offer tax breaks to help reduce the overall budget.

The letter was also signed by Red Car, Atum and Melmation, plus representatives of Sheffield Hallam University, Save Kids TV and Animated Yorkshire. It claimed more than half of the industry had disappeared in less than five years, “losing jobs, intellectual property and money paid in taxes”, despite growth in the sector worldwide.

It also pointed at the loss of “British identity” for children growing up watching imported programmes and claimed that companies in “most of the world” were now able to offer 25-50% tax breaks.

“We have now reached a point where, in a global economy, everyone is offering these incentives; we in the UK simply cannot compete,” the letter said. “What do we have to offer? Nothing – and our talent is leaving the country.”

Animation UK stressed that “for a relatively small sum of money, we can kickstart the industry” and suggested it could double in size with the introduction of tax breaks."