Why & how VFX could use the tax rebate to boost diversity & inclusion

The UK’s recent announcement of a 29.25% VFX tax rebate will reshape the VFX and animation landscape in more ways than one. Driven by unprecedented investment and job creation, there’s a unique and urgent opportunity to address diversity and inclusion (D&I) challenges that have long defined, and, to some extent, limited, the industry.

This tax incentive isn’t just the economic boost the industry needed; it’s a gateway to lasting, meaningful change that ensures the UK VFX and animation industry reflects the diversity of its audience and the society in which it thrives.

A historic opportunity for underrepresented talent

The increased VFX tax rebate is projected to generate approximately £175 million in additional annual spending, bringing with it around 2,800 new jobs to the creative industries. This is more than just economic growth; it’s a chance to redefine who can access a career in VFX and animation.

Historically, accessibility to the industry has been limited, with marginalised and underrepresented groups facing multiple barriers to entry. This has led to a lack of diversity that ultimately affects the creativity and cultural resonance of the industry. Now, with the projected job growth, the industry has the momentum to actively engage underrepresented talent, from outreach to job placements and career support.

Businesses and organisations need to use this opportunity to tap into the rich pool of talent that has often been left behind. By targeting historically marginalised groups, such as women, people with disabilities, people of colour, and individuals from lower socioeconomic backgrounds, the influx of job opportunities can become a vessel for true inclusivity.

The role of targeted outreach and development initiatives

Key to this vision is targeted outreach and skills development programmes designed to break down barriers to entry and drive change. Though the industry has made some progress, the tax rebate announcement presents an opportunity for businesses and organisations to double down on their grassroots initiatives. Partnerships with educational institutions, community organisations and social enterprises, as well as targeted scholarships and bursaries are all ways we can introduce - and make a career in - VFX and animation attainable for young people and diverse talent. Initiatives like these will help cultivate an industry-ready workforce to meet the demands of this growth phase.

Embracing generative AI: upskilling and inclusive technological advancements

Another critical aspect of the tax rebate is its inclusive provision for generative AI costs. As the industry embraces the potential of AI, and the new creative possibilities and workflows it can offer, inclusive upskilling must be prioritised by targeting underrepresented communities. These technological advancements are becoming increasingly central to a career in VFX and animation, and without an engaged diverse workforce, we risk embedding biases that limit the breadth of innovation.

Redefining the creative economy with Inclusive Voices

The chancellor’s acknowledgment of VFX and animation as a key sector within the UK’s Industrial Strategy reinforces its growing importance within the UK economy. This recognition, combined with tangible financial support, means that the creative industries have the power to be the driving force for the inclusive economy we have long strived to build. To achieve this, diversity cannot remain an afterthought. It must be woven into the fabric of every initiative, every job, and every innovation.

Having an inclusive industry means that our creative outputs will resonate with broader audiences on a global scale, reflecting a multitude of voices and experiences.The tax incentive allows us to embed inclusive practices at every level - from junior roles to senior leadership - ensuring diverse perspectives contribute to the growth and creativity of the sector.

Looking ahead: realising the vision of an inclusive industry

The impact of this tax incentive increase won’t be immediate. However, by proactively leveraging it to support D&I initiatives, we can set in motion a long-lasting and positive cultural shift. This is a moment to not only fill roles but to fill them inclusively, with people who bring fresh, diverse perspectives to an industry on the brink of transformative growth.

The incentive offers us more than just financial support; it is a mandate to redefine who gets to participate in shaping the future of the UK’s VFX and animation sector. As an industry, we need to create a space for underrepresented talent to thrive. Only then can we truly mirror and celebrate the diversity of our society. The journey toward an inclusive and representative VFX and animation industry is far from over but with the backing of this incentive, we are on the cusp of making it a reality.

Simon Devereux is founder and director of Access:VFX