You are viewing your 1 free article this month. Login to read more articles.
Leading industry figures have voiced concerns that the autumn statement misses the mark in addressing the key concerns facing publishing.
Trade organisations have said that Chancellor of the Exchequer Jeremy Hunt’s budget included welcome measures like the 2% cut on National Insurance, the freeze of the small business multiplier and the financial commitment to science and technology. But they also warned that the statement did not address many of the pressures facing publishers, booksellers and authors.
“The cut in National Insurance contributions in England, Wales and Northern Ireland is welcome for employees and publishers who are building teams," said Bridget Shine, chief executive of the Independent Publishers Guild (IPG). "National Insurance reform for the self-employed is positive for the freelances who serve publishing so well," she explained.
Shine added: "Making the full-expensing tax break permanent may allow for more investment in things like IT equipment. There’s also some light relief to be had in the freeze on alcohol duty, which will please organisers of publishing parties and functions."
The IPG’s chief executive said that the statement does "little to relieve inflationary pressures on our members in areas like energy and materials" and that book buying will be affected as "punishing interest rates and household bills will continue to limit discretionary spending". She added that the "relatively high tax and high inflation environment" that the UK remains in presents issues for publishers and consumers.
Laura McCormack, head of policy and public affairs at the Booksellers Association (BA), praised Hunt’s move to freeze the small business multiplier and extend the business rates retail discount by a year. Small businesses that do not qualify for small business rate relief have their business rates calculated using a ‘multiplier’. She acknowledged that this will help indie bookshops faced with the cost of living pressures but added that "larger members will see an increase in the standard multiplier". She said that "high street businesses were not offered further support" at this time.
Dan Conway, c.e.o. of the Publishers Association (PA), commented that the autumn statement comes ahead of a general election, adding that the government "has rightly continued to recognise the creative industries as one of the UK’s key growth sectors". He said: "We were also pleased to see the chancellor reinforce the government’s commitment to positioning the UK at the cutting edge of science and technology, through financial commitment to UK R&D and Horizon Europe."
Conway added: "Digging deeper into the policy detail, we remain disappointed that the government has missed the chance to axe VAT on reading and publishing once-and-for-all by zero-rating audiobooks and article processing charges for Open Access publishing. The government also continues to spend significant public funds on the Oak National Academy, which detracts spending from where it would be most beneficial in education – to the schools themselves. We will continue to make the case to government on all these issues.”
Moreover, a spokesperson from the Authors’ Licensing & Collecting Society (ALCS) said that it was "positive to see measures that support the growth of the UK’s audiovisual sector". It added that even though "tax credits have been positive for growth of the sector, more needs to be done to fund UK-sourced content commissioning".
An ALCS spokesperson said that the statement fell short of increasing the Public Lending Right (PLR) fund. They said: "PLR remains a crucial source of income for authors, particularly for those whose books are primarily distributed through libraries and for authors whose works are no longer in print but still widely read. This programme plays a pivotal role in ensuring that financial support reaches a diverse array of authors, beyond the bestsellers.
"PLR serves as a straightforward, efficient and targeted mechanism through which government can support authors equitably, all while maintaining a cost-effective approach. We strongly implore the government to increase the already modest PLR Fund."
ALCS c.e.o. Barbara Hayes added: "We know there is a need for more measures to fairly support authors’ incomes and their opportunities to work, produce, and collaborate. At a time when our creative industries are flourishing, we need to ensure authors aren’t left behind."