Versa Studios urges UK tax incentives for unscripted TV production

The UK’s lack of unscripted incentives creates a budget mismatch for global streamers choosing production hubs for reality and factual content. As the Republic of Ireland actively markets itself as the 'European capital of reality TV' with its new 20% credit, the UK faces immediate capital and job flight in the high-margin formats sector. Domestically, studios like Versa are squeezed by industrial energy hikes and rigid business rates that further erode the margin on unscripted shoots. This signal indicates the industry is shifting from asking for general support to demanding specific fiscal parity with high-end scripted drama to maintain its factual export dominance.

The push for unscripted parity comes as other UK production sectors receive significant targeted support. Per the British Film Institute (BFI), the Independent Film Tax Credit (IFTC) formally allowed companies to begin claiming an enhanced 53% tax relief on qualifying expenditure starting April 2025. This credit specifically targets films with budgets up to £15 million, while the standard Audio-Visual Expenditure Credit (AVEC) provides a 34% headline rate (roughly 25.5% in actual relief) to high-end television and animation. Industry leaders argue that while these measures protect scripted drama, the unscripted sector—responsible for major exports—remains fiscally exposed to international competitors.

Energy costs and business rates have become primary operational bottlenecks for the UK's studio network. Per government updates from March 2025, eligible film studios in England were granted a 40% relief on business rates for 2025/26 to maintain international competitiveness. However, broader non-commodity energy charges, such as the Transmission Network Use of System (TNUoS) fees, were projected to increase significantly through April 2026. These rising costs directly impact the daily operational overhead for large-scale facilities like Versa’s London and Manchester hubs, where power-intensive 'shiny floor' entertainment shows are filmed.

Meanwhile, the Republic of Ireland’s unscripted tax credit, operational since January 2026, has established a new regional benchmark. Per local reports from early 2026, the credit allows producers to recoup 20% of eligible costs for game shows and reality TV, which must pass a cultural test and meet a minimum spend of €125,000. This incentive was explicitly designed to lure international projects from players like Netflix and Fox that might otherwise have utilized UK facilities. UK exchequer secretary Dan Tomlinson noted in June 2026 that the government remains open to sector dialogue, though no formal unscripted credit has yet been added to the UK’s expenditure credit regime.