Despite contributing considerably to the UK’s £120 billion creative industry, recording studios across the United Kingdom remain excluded from essential business rates relief schemes that similar creative sectors now enjoy. Over 500 recording studios nationwide face mounting operational costs without access to the Retail, Hospitality and Leisure (RHL) business rates relief program, which offers an average 40% reduction to eligible properties in other sectors.
The disparity has become particularly pronounced since February 2025, when film studios began receiving 40% business rates relief in England, valid until 2034. This relief, designed to stimulate production and investment in film and television, allows eligible studios to claim benefits retroactively from April 2024, creating a stark contrast with recording facilities performing comparable creative functions.
Film studios now enjoy 40% rates relief while recording studios performing identical creative functions remain excluded.
Industry representatives including the Music Producers Guild and UK Music have launched a coordinated campaign targeting Chancellor Rachel Reeves, arguing that recording studios should be classified under the RHL relief scheme. The campaign emphasizes that many studios operate with ancillary services like onsite catering and live music activities, further justifying their inclusion in hospitality and leisure categories.
The UK government’s broader creative industry support has reached record levels, with £2.4 billion in tax relief distributed across sectors during 2023/24—a 10% increase year-on-year. High-end TV productions received approximately £1.1 billion, while theater, orchestra, and video game sectors also saw significant relief increases. Many industry insiders believe establishing clear promotional goals could help studios demonstrate their economic and cultural value more effectively to policymakers.
From April 2025, visual effects expenditures will qualify for up to 39.75% net tax relief under the Audio-Visual Expenditure Credit without the previous 80% expenditure cap, provided physical work occurs within UK borders. This enhanced relief system will benefit soundtrack recording that qualifies under AVEC guidelines, but importantly excludes independent recording studios operating outside film production. Unlike film production companies which require just 10% UK expenditure to qualify for AVEC benefits, recording studios must bear their full tax burden despite being entirely UK-based operations. A recent November 2024 Music Producers Guild study revealed that business rates for studios have surged by 25%, with 100% of studios unable to pass these increased costs on to their clients.
Industry advocates argue that without immediate action to extend similar relief to recording studios, the UK risks losing iconic facilities that have shaped its musical heritage and continue to drive substantial local economic activity through their cultural and commercial contributions. These studios are essential to musicians seeking to establish diverse income streams through professional recordings that can be monetized across platforms.
