The UK Government has outlined measures to improve the efficiency of apprenticeships through a fully funded apprenticeship scheme for people under the age of 25 employed by small and medium-sized enterprises (SMEs).
Funding will come from an additional £725m in growth and skills levy.
The film and television industries were highly critical of the apprenticeship levy introduced under the previous Conservative government, saying it was not fit for purpose, lacking the agility to suit the short-term contract nature of the industry, and having unsustainable administrative costs.
Apprenticeship reform was outlined in Chancellor Rachel Reeves’ autumn budget tabled on 26 November.
As well as apprenticeship funding, short training courses will be introduced from April 2026 to increase apprenticeship flexibility. The Government confirmed it is “working with employers to streamline the range of apprenticeship standards available”, but further details will be announced in due course.
The apprenticeship scheme, introduced in April 2017, required companies with a payroll of more than £3m to invest 0.5% of their annual salary in apprenticeships and offer participants a contract of at least 12 months. Tax-exempt small businesses will pay 5% on the training costs of apprentices aged 16 to 21.
In 2024, the government will abolish the 5% payment for small and medium-sized enterprises hiring apprentices under the age of 22. The government plans to extend this co-investment relief to all eligible persons under the age of 25.
Industry reaction has been mixed
The government also reaffirmed a 40% business rate relief for film studios until 2034, first introduced in February.
Both the British Film Institute (BFI) and the British Film Commission (BFC) praised the budget. BFI Deputy Chief Executive Harriet Finney said: “The BFI welcomes continuing business fee relief for UK film studios and new apprenticeship certainty to support the next generation of talent in today’s Budget.”
BFC chief executive Adrian Wootton said: “We are pleased that the Government has recognized the importance of the film and TV studio sector in today’s Budget by retaining important business rates relief.”
However, creative industries trade union Bectu expressed concern about the lack of consideration for freelancers.
Bectu chief executive Philippa Childs said: “Low pay is a very serious problem for many of the highly skilled workers who support our creative industries, so we welcome the increase in the minimum wage (from £12.21 to £12.71 an hour).” “The same goes for the increase in the state pension, which will benefit many creative workers, especially those who are self-employed and do not qualify for automatic enrollment.
“However, for the self-employed, this benefit could be reduced and they would be caught out by many of the proposed tax and benefit changes, such as taxing dividends and savings income and restricting cash ISAs (Individual Savings Accounts). “These same citizens will continue to be denied basic rights such as sick pay, parental leave and pensions, and miss out on the government’s flagship worker protections, despite paying more tax.”
“The Government has exempted people aged 65 and over from the ISA cash conversion changes. This should also apply to the self-employed, many of whom rely on ISAs for their retirement savings.”
Ellie Pears, general secretary of the Writers Guild of Great Britain, similarly expressed frustration at the lack of consideration for freelancers.
“While the Chancellor said ‘working people deserve change’, the unique needs of the freelance creative workforce are often overlooked and they too face a cost of living crisis. I wish there had been more targeted intervention on this front, for example by making benefits schemes more accessible to the self-employed, exploring models like universal basic income and introducing tailored grants for creative workers.”
“The Government’s proposed long-term tax changes for those receiving PAE (pay as you earn)/self-employment income will require close scrutiny. There are few details at this time, but we look forward to further consideration and look forward to participating in future consultations.”
Colleagues also point out the following: The Chancellor made a lot of references in his budget to the relentless pursuit of growth, and given that the creative industries are one of the government’s eight priority areas, it was disappointing that there was no new announcement on that front.
“While we welcome increased national and regional investment, we fear that without ring-fenced funding for the arts in these regions, more theaters and other cultural venues will close as local authorities struggle to protect frontline services, which in turn will impact on the jobs of our members.”
Also missing was any mention of tax breaks for print and advertising, recommended by the UK’s cross-party Culture, Media and Sport (CMS) council. committee of October. We would like to establish a 25% tax relief for the distribution and screening of UK films by claiming and qualifying for the Independent Film Tax Credit (IFTC).
