Autumn Budget 2024: how does it impact you?

Understanding the Autumn Budget

Following this afternoon’s Autumn Budget announcement, we’ve pulled together a helpful guide to help you understand, as someone working in film, TV, and cinema, how you might be impacted by the changes announced.

From carer’s weekly allowance to increases in employers’ National Insurance contributions – we’ve got you covered!

The impact on individuals

Tax and benefits

• Tax and VAT – there will be no increase to individual VAT or employees’ National Insurance contributions. The tax thresholds freeze will end in 2028, at which point it may rise with inflation.
• National Living Wage – from April 2025 the National Living Wage will increase for over 21s, from £11.44 to £12.21. This will increase to £10 for 18 to 20-year-olds. Apprentices will get the biggest pay bump, with wages rising from £6.40 to £7.55 an hour.
• Pensions – the state pension will rise by 4.1% from April.
• Personal Independence Payment (PIP) – will rise in line with the Consumer Price Index (CPI) for September.
• Universal Credit – debt recovery deductions taken direct from this benefit will be reduced to 15%.
• Carers – The Carer’s Allowance weekly earnings limit will increase to 16hrs at national minimum wage, which is the equivalent of more than £10k per year.
• Health and Disability Benefits – further reforms to health and disability benefits will be announced in early in 2025.

• Fuel – fuel duty will be frozen and the temporary 5p cut will be extended for a year.
• Winter Fuel Allowance will be cut to support only those in receipt of means tested benefits who were born before 22 Sept 1958 and living in UK in qualifying week 16–22 Sept 24.
• Mental health – the government will fund new mental health crisis centres, reducing pressure on A&E services. The government has also confirmed they are committed to tackling the root causes of mental health problems and supporting people to remain in, return to, or find work.
• Childcare – investment in breakfast clubs within schools will help improve care options free of charge.

The impacts for the film, TV, and cinema industry

• National Insurance – Employers’ National Insurance contributions will rise from 13.8% to 15%, and the threshold at which they have to pay it will drop from £9,100 to £5,000.
• Employment allowance will increase from £5,000 to £10,500.
• Audio-Visual Expenditure Credit – as previously announced, from 1 April 2025, film and high-end TV productions will be able to claim an enhanced 39% rate of Audio-Visual Expenditure Credit on their UK visual effects costs. UK visual effects costs will be exempt from the Audio-Visual Expenditure Credit’s 80% cap on qualifying expenditure. 
• Independent Film Tax Credit – as previously announced, from 1 April 2025, UK films with budgets under £15 million and a UK lead writer or director will be able to claim an enhanced 53% rate of Audio-Visual Expenditure Credit. 
• Regional support – up to £120 million towards the development of Crown Works studios in Sunderland, which should create around 8,500 jobs. 
• Business rates – a 40% relief on business rates until 2030 offered to film studios in England.