Warner Studio business rates slashed in Jeremy Hunt Budget 2024

Jeremy Hunt, the Chancellor of the Exchequer, has taken a significant step to support the film and TV industry by reducing business rates for studios.

Jeremy Hunt plans to reduce business rates for studios and provide support to councils facing potential revenue losses due to this decision. Notable studios such as Sky Studios Elstree, Warner Bros Studios Leavesden, and Pinewood Studios in Buckinghamshire are expected to benefit from this initiative, as announced by the Chancellor during his 2024 Budget speech in the House of Commons.

The move comes in response to the significant increase in business rates that major studios were set to face under previous arrangements.

“We have become Europe’s largest film and TV production centre with Idris Elba, Keira Knightley and Orlando Bloom all filming their latest productions here,” Mr Hunt told Parliament.

“Studios space in the UK has doubled in the last three years and at the current rate of expansion, next year, we will be second only to Hollywood globally.”

In 2023, the Valuation Office Agency (VOA) recalculated “rateable values,” the figures used by authorities to determine business rates. This recalculation resulted in a substantial 360% increase in rateable values for Warner Bros Studios Leavesden near Watford and a 372% increase at Elstree Film Studios in Borehamwood. To mitigate the financial impact on studios and support affected councils, Jeremy Hunt’s decision aims to alleviate the burden on these key players in the entertainment industry. The move is expected to positively influence the financial landscape for studios and local authorities alike.

Sky Studios Elstree and Warner Bros Studios Leavesden, both located in Hertfordshire, are among the studios that stand to gain from this decision.

These studios were previously facing a substantial increase in business rates due to recalculated “rateable values” by the Valuation Office Agency (VOA) in 2023

Jeremy Hunt seeks to strike a balance between supporting studios and ensuring local councils can continue to provide essential services. It’s a welcome development for Hertfordshire’s thriving film and TV sector!

Sky Group CEO, Dana Strong, has welcomed the news, outlining how it provides a stable foundation for the investments of tomorrow in the UK, such as the broadcaster’s proposal to expand its studio space in Elstree and to announce the filming of NBCUniversal’s next Jurassic World movie at the studio.

Strong said: “We’re delighted that the Chancellor called ‘Cut’ today on TV and Film studio business rates, providing vital tax relief to enable the UK’s world-class film and TV production sector to continue to thrive. Today’s announcement brings confidence to the sector, unlocking job opportunities whilst providing a stable foundation for the investments of tomorrow in the UK, such as our proposal for Sky Studios Elstree North and the filming of NBCUniversal’s Jurassic 4.”

Sky estimates thar Sky Studios Elstree North will create 2,000 jobs and bring an additional £2 billion of production spend into the UK in the first five years alone.