Clause 40
Finance (No. 2) Bill
2:00 pm
Edward Balls (Economic Secretary, HM Treasury; Normanton, Labour)
As the clause makes clear, and as I think that we discussed on Tuesday, in order to be eligible for film tax relief, a film is required to be British and to be certified as such by the Secretary of State for Culture, Media and Sport under schedule 1 to the Films Act 1985. That was the previous requirement for film tax reliefs. However, my right hon. Friend has developed and introduced a new film tax regime designed to be simpler to operate and more geared towards a film’s British cultural status.
I had the pleasure to serve on the Committee that debated the details of that cultural test. Certainly, the conditions set out are extensive, but it will not surprise the Committee that that is the responsibility of my right hon. Friend, not the Treasury. Obviously, it would be inappropriate for a Treasury Minister to comment on any matters outside the direct purview of the Treasury, so that is really a matter for my right hon. Friend’s Department.
On European Commission state aids, we discussed the procedure for state aids clearance during consideration of the clauses on tax reform. The state aids rules require that support be directed towards films that are cultural products, which is why the Department for Culture, Media and Sport has been in dialogue with the Commission over compatibility with the state aids rules and its responsibilities. That Department, like the Treasury, has notified the Commission of the test, but that is for it to pursue.
I can reassure the hon. Member for Chipping Barnet that this is not being done because of a requirement from the Commission, but because we want a test of Britishness that will allow us to say with hand on heart that we are supporting the production of British films.