UK Tories Pledge Tax And Regulatory Assistance To Creative Industries

by Jason Gorringe, Tax-News.com, London

17 May 2006

UK Shadow Chancellor, George Osborne on Monday stated that an incoming Conservative government would boost Britain's creative industries by reducing business regulation, curbing tax levies, and reforming education to expand the pool of available skilled workers.

Addressing an international communications conference in Oxford, he also hinted at the introduction of new rules to stop the BBC from becoming "the Bull in the China Shop" of the new media.

Warning that the UK's creative industries are struggling to penetrate deeper into global markets because of record tax levies, low business investment, ever growing bureaucracy and regulation, and a poor education system, the Shadow Chancellor promised changes if the Conservatives win power.

He told those attending the conference that:

"We cannot assume that we in Britain will continue to punch above our weight in terms of ideas. So it is more important than ever before that we get the government framework right. We need real education reform, not just tinkering around the edges. We need lower and simpler taxes. And we need to ease the biting burden of business regulation."

Speaking with regard to the BBC, Mr Osborne observed that the Corporation was sheltered from market pressures by its massive income from the compulsory licence fee, and warned that the BBC "must be very careful about not abusing its privileged position and huge resources to crowd out smaller players".

He added:

"I am concerned that in too many of its non-core activities, particularly on the internet, it is stifling the growth of innovative new companies that simply can't compete with BBC budgets. For example, the BBC's license-fee funded ability to hand out quality content free online makes it very difficult for other providers to move into the new video download market."

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