What does the Autumn Budget mean for the creative and media sector? – Autumn Budget 2025

Earlier today, Chancellor Rachel Reeves delivered the Autumn Budget with a clear message: cut debt and borrowing; drive growth through stability, investment, and reform; and champion innovation. Her vision is to make Britain “the best place to grow up and scale up”, promising that if you build here, Britain will back you.

Although there were few major sector-specific measures for creative and media businesses, several announcements will influence the way these industries operate. Here’s what you need to know.

A push for growth and innovation

The government is making it easier for entrepreneurs to start, scale, and stay in the UK. Key measures include:

• Tax incentives for investment: Designed to encourage scaling companies and attract capital.
• UK listing relief: A new exemption from stamp duty reserve tax for UK listings, supporting businesses that want to raise funds locally.
• R&D reforms: Streamlining the research and development system to drive innovation across sectors.

Importantly, creative industries remain a sector prioritised for growth under the government’s Modern Industrial Strategy, reinforcing their role as a driver of economic and cultural value.

Creative places growth fund

A major positive for the sector is the confirmation of £150 million for the creative places growth fund, allocated across six regions across the UK.

Business rates relief

The government reaffirmed its commitment to supporting film production. At Spring Budget 2024, it announced that eligible film studios in England will receive a 40% reduction on their gross business rates bills until 2034.

It was also confirmed that leisure business rates will be reduced starting from the 2026/27 financial year.

What about creative industry reliefs?

While the Budget didn’t introduce new reliefs, existing schemes remain vital. If your company qualifies as a production company and passes the cultural test, you may be able to claim reliefs or expenditure credits on your company tax return.

The government will introduce legislation in Finance Bill 2025-26 to set out the corporation tax treatment of intra-group payments made in return for surrendered Audio-Visual Expenditure Credit (AVEC), and Video Games Expenditure Credit (VGEC).

This will apply to payments made on or after 26 November 2025, providing clarity for groups claiming these important creative industry incentives.

Contact one of our experts for guidance on maximising these opportunities.

Employment taxes and wage changes

Labour costs will rise, and planning ahead is essential:

• National insurance and income tax thresholds frozen

• Minimum wage increases

• Apprenticeships: Training for under-25s will be completely free for SMEs, backed by £820 million in funding.

This is good news for creative businesses looking to attract young talent and unlock career opportunities for the next generation.

Pensions

From 2029, employees paying into a pension pot under salary sacrifice will pay national insurance on contributions above £2,000 per year. This could affect remuneration strategies for senior staff.

Corporation tax and investment

• Corporation tax: No change to the headline rate.
• Full expensing retained: Companies can continue to deduct the full cost of qualifying plant and machinery.
• New 40% First Year Allowance (FYA): A significant upfront benefit for investment in equipment – ideal for studios upgrading technology or production facilities.

Self-employment and dividend tax

Income tax at the basic and higher rates will rise by 2% on property, savings, and dividend income from April 2026. This impacts owner-directors and freelancers who rely on dividends for income.

Electric vehicles

From 2028, electric cars will be taxed at 3p per mile and hybrids at 1.5p per mile

The bottom line

The Autumn Budget 2025 offers mixed news for the creative and media sector. Free apprenticeships and investment allowances are positives, but rising wage costs, frozen thresholds, and dividend tax hikes will squeeze margins. Strategic planning is essential to stay competitive.

Next steps for businesses:

• Review tax planning in light of dividend and pension changes.
• Leverage investment incentives for tech upgrades.
• Prepare for wage increases from April 2026.
• Explore existing creative industry reliefs to optimise your position.

If the Budget has raised any questions for you, or if you would like any further information or guidance on this topic, get in touch with your usual Kreston Reeves contact or contact us here.