The British record industry is calling on the Government to extend its research and development tax-credit scheme to music companies, to try to help it keep the UK at the forefront of the global music scene.
The BPI – record industry’s trade body – argues that the music sector spends a bigger proportion of its profit on R&D than the aerospace, motoring and defense sectors put together. Yet it does not qualify for any of the financial support from the Government like other sectors.
Peter Jamieson the chairman of BPI said the music industry spends 200 million+ a year on developing new talent such as Corinne Bailey Rae, one of the biggest new British acts. He said that such levels of investment were on a par with the pharmaceutical sector.
“We believe the time is right for government, together with industry, to consider closely a tax-credit regime for A&R [artist and repertoire], which is the music business’s research and development,” he said. He also said that the music industry’s Â£200m a year spend on R&D makes an enormous contribution to the British economy. He said music industry sales generated Â£300m of VAT revenues alone for the Government last year
It’s worthy a try.