The UK government has outlined measures to increase efficiency in its apprenticeship offering through fully funded apprenticeships for people aged under 25 employed by small and medium-sized enterprises (SMEs).
It will be funded from an extra £725m for the Growth and Skills Levy.
The film and TV sectors were highly critical of the apprenticeship levy introduced under the previous Conservative government, calling it not fit for purpose, with a lack of agility to suit the short-term contract nature of the industry and unsustainable administrative costs.
The apprenticeship reform was outlined in the autumn budget, delivered on November 26 by chancellor Rachel Reeves.
As well as the apprenticeship funding, short training courses will be introduced from April 2026 to improve the flexibility of apprenticeships. The government confirmed it is “working with employers to streamline the suite of apprenticeship standards available”, with more details to be announced.
Launched in April 2017, the apprenticeship levy required companies with a payroll in excess of £3m to invest 0.5% of their annual pay bill towards apprenticeships and offer a participant a contract of at least 12 months. Non-levied SMEs would then make a 5% contribution to the cost of training apprentices aged between 16 and 21.
In 2024, the government scrapped the 5% payment for SMEs when they hired an apprentice under the age of 22. The government will now extend this co-investment relief for all eligible people aged under 25.
Mixed industry reactions
The government also reconfirmed the 40% business rates relief for film studios until 2034, first addressed in February.
The British Film Institute (BFI) and British Film Commission (BFC) both praised the budget. “The BFI welcomes the news in today’s budget of the certainty of continued business rates relief for film studios in England and new apprenticeship measures, supporting our next generation of talent,” said Harriet Finney, deputy CEO of the BFI.
“We are delighted by the government’s recognition in today’s budget of the importance of the film and TV studios sector by retaining the vital business rates relief,” noted Adrian Wootton, chief executive of the BFC.
However, the creative industries’ union Bectu expressed concern for a lack of attention paid to freelancers.
“Low pay is a very real issue for many of the highly skilled workers who prop up our creative industries, so the minimum wage increases [up from £12.21 per hour to £12.71] are welcome,” said head of Bectu Philippa Childs. “As is the rise in the state pension, which will benefit many creative workers, not least those who are self-employed and so ineligible for auto-enrolment.
“However, this benefit may be undercut for the self-employed, who will be caught by many of the tax and benefit changes proposed, such as taxing dividends and savings incomes and the cash ISA [Individual Savings Accounts] restrictions. The same people, while paying more tax, continue to be denied basic rights like sick pay, parental leave and pensions and will miss out on the government’s flagship worker protections.
“The government has exempted over-65s from the cash ISA changes – this should also be extended to the self-employed, many of whom rely on ISAs for retirement savings.”
Ellie Peers, general secretary of the Writers’ Guild of Great Britain, echoed the frustration around the lack of consideration for freelancers.
“The chancellor said that ‘working people deserve change’, yet the unique needs of a freelance creative workforce often go unnoticed, and they too have been facing a cost-of-living crisis. We would have preferred to have seen more targeted interventions on that front, making the benefit system more accessible for the self-employed, for example, or exploring models like Universal Basic Income or introducing tailored grants for creative workers.
“The government’s longer-term proposed changes to the tax system for those in receipt of PAYE [pay as you earn]/self-employed income need close scrutiny. There is scant detail at present, and we look forward to more and to taking part in the upcoming consultation.”
Peers also noted, ”The chancellor made much reference in the budget to relentlessly pursuing growth, and given the creative industries are one of the government’s eight priority sectors, it was disappointing to hear no new announcements on that front.
“While it is welcome to see more investment for the nations and regions, we are concerned that without ringfenced funding for the arts in these areas, we may well see more theatres and other cultural venues close, as squeezed local authorities battle to protect frontline services. This in turn, will impact our members’ jobs.”
Also missing was any reference to a tax relief on prints and advertising costs recommended by the UK parliament’s cross-party culture, media and sport (CMS) committee in October. It hopes to establish a targeted 25% tax relief for the distribution and exhibition of UK films claiming the Independent Film Tax Credit (IFTC).
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