VAT scrapped on E-publications

  • move will potentially slash the cost of e-books and newspapers making reading more accessible as people stay at home
  • newspapers to receive up to £35 million additional government advertising revenue as part of coronavirus communications campaign

Plans to scrap VAT on e-books and e-newspapers have been significantly fast-tracked in a boost to readers and publishers during the coronavirus outbreak, the Chancellor announced today.

Rishi Sunak said the zero rate of VAT will now apply to all e-publications from tomorrow (1 May 2020) – seven months ahead of schedule – potentially slashing the cost of a £12 e-book by £2 and e-newspapers subscriptions by up to £25 a year.

In support of the print newspaper industry, the government has also announced it will be spending up to £35 million on newspaper advertising over the next 3 months as part of its Covid-19 communications campaign to ensure the whole UK is aware of the latest government guidance and advice.

Chancellor of the Exchequer Rishi Sunak said:

We want to make it as easy as possible for people across the UK to get hold of the books they want whilst they are staying at home and saving lives.

That is why we have fast tracked plans to scrap VAT on all e-publications, which will make it cheaper for publishers to sell their books, magazines and newspapers.

With the nation staying in their homes during lockdown and schools closed, millions have been relying more on e-publications to pass time, home school and read the news. The Chancellor has opted to bring the zero rating forward to make entertainment more affordable for readers who are rightly staying at home during the coronavirus crisis – and are more reliant on e-publications as a result.

The price of an e-book will now be VAT-free. The e-book of Hilary Mantel’s The Mirror and The Light could be over £2 cheaper while the average tax annual saving on a typical e-newspaper or e-magazine subscription could be £25 or £20 respectively.

The move will be a boost both to readers in the form of cheaper e-books and e-newspapers, and the publishing industry who should benefit from a boost in sales.

On average publishers are reporting an increase of about a third in e-book consumption during the crisis, with some publishers reporting as much as a 50% increase. In the last seven days alone, subscriptions to TI media are up 200%, whilst Hearst’s new subscribers were up more than 100% year-on-year across the second half of March.

The £35 million extra advertising revenue will be split between local, regional and national print media, and will be a vital boost to the media industry. These plans will be constantly reviewed over the next three months to ensure the campaign is as effective as possible.

Both the e-publications measure and the increased advertising spending are UK-wide.

Notes

Readers, who rely on large print sizes or find physical books difficult to hold, are expected to particularly benefit from digital reading being more financially accessible.

At the Budget in March, the Chancellor originally announced he would be applying a zero rate of VAT to supplies of e-publications (e-books, e-newspapers, e-magazines and academic e-journals) to support reading and literacy from 1 December 2020.

Research by the National Literacy Trust indicates that 1 in 4 pupils on free school meals say they read fiction digitally compared to 1 in 6 of their peers not eligible for free school meals and that over 45% of children prefer to read on an electronic device.

Statistics on e-book consumption provided by Publishers Association.

Statistics on TI Media and Hearst subscriptions provided by Professional Publishers Association

The government recognises the vital role that media organisations, including newspapers, play in ensuring the provision of trusted, high quality information and their ability to reach isolated and harder to reach communities, such as BAME and older communities.

In light of this, the government has established advertising partnerships with the nation’s favourite and most- trusted media titles, as a way of delivering important government communications on coronavirus. This has allowed the government to leverage the powerful and familiar voices of over 600 national, regional and local titles across England, Scotland, Wales and Northern Ireland. It is estimated these partnerships will reach 34 million people every day and 92% of adults in the UK each month.




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Defence scientists trial innovation to slash ambulance cleaning time

Trials of novel technology that could dramatically cut the time it takes to decontaminate ambulances have taken place following a rapid appeal by the Defence and Security Accelerator (DASA) in response to Coronavirus.

Scientists at the Defence Science and Technology Laboratory (Dstl) have tested 12 methods to speed-up the sanitising of ambulances – in some cases reducing cleaning time from an hour to around 10 minutes so more lives can be saved.

DASA coronavirus response

More than 200 ideas were submitted to DASA by industry in just seven days following the appeal, which was launched on behalf of the Welsh Ambulance Service, Welsh Government, The Small Business Research Initiative (SBRI) Centre of Excellence, and Innovate UK.

Gabriella Cox, DASA security competition lead, said:

This has been a huge effort from everyone involved. The response by industry was remarkable and there has been a monumental effort by staff from DASA, Dstl and our partners to be able to complete this project in just 33 days.

Innovation has never been more important as we play our part in the national effort against Coronavirus.

Dstl scientist Steve Mitchell, who led the trials, said:

The trials have shown some really promising ideas ranging from fogging techniques, sprays, and using a decontaminant vapour to give a thorough and deep clean in the quickest time possible.

This has been a big challenge for everyone involved to turn this work around in such rapid time with the possibility of one of the solutions being taken forward by the Welsh Ambulance Service in the next week or so.

Steve Mitchell interview

DASA asked businesses to come up with innovative solutions to accelerate the cleaning of ambulances so that crews can get back on the road and respond to other emergency calls.

It is hoped the solutions may also be used by other emergency services and possibly public transport.

The Welsh Ambulance Trust will consider results from the trials and successful solutions may be implemented across the organisation.

DASA finds and funds innovation for the UK’s defence and national security.




Coronavirus (COVID-19): letter to the energy sector

  • Only go outside for food, health reasons or work (but only if you cannot work from home)
  • If you go out, stay 2 metres (6ft) away from other people at all times
  • Wash your hands as soon as you get home

Do not meet others, even friends or family.

You can spread the virus even if you don’t have symptoms.




The Secretary of State has appointed four new Commissioners to the Gambling Commission.

Terry Babbs

Terry Babbs’ career spans the private and public sectors. His executive career was in regulation, international trade and supply chain management with Tesco plc and he has served on and chaired a number of international organisations in these fields. His subsequent non-executive career includes two terms on the Legal Services Board where he also chaired their Audit and Risk Assurance Committee. He is currently vice chair of the Investment Committee of Oxfam’s Enterprise Development Programme and a non-executive director of HMRC’s Valuation Office Agency. Terry is also the Senior Independent Director at the General Dental Council and chair of its Finance and Performance Committee.

Brian Bannister

Brian Bannister is currently the Executive Director for Strategic Insight and Influence at The Law Society of England and Wales. Brian joined from KPMG where he served for seven years as Global Head of Communications, with responsibility for the network’s global media and external profile as well as internal communications for more than 200,000 partners and staff. Prior to KPMG Brian was PwC’s UK Director of Communications for six years, leading media relations, digital, internal communications and public affairs. Previously Brian was PwC’s UK Director of Public Affairs with responsibility for relations with Government, regulators and other stakeholders and was a member of PwC’s European and Global PwC Public Affairs Boards. He holds an Honours and Masters Degree in Political Science.

Jo Hill

Jo Hill is Executive Director of Strategy and Risk at The Pensions Regulator. She is responsible for Corporate Strategy, the Regulatory model, Risk Management Framework and Data and Analysis.
Jo was previously Director of Market Intelligence, Data and Analysis at the Financial Conduct Authority (FCA) accountable for the creation and delivery of the FCA’s approach to data and analysis, Sector Views (common view of regulatory risk) and Consumer Agenda.
Prior to her appointment as Director of Market Intelligence, Data and Analysis, Jo held a number of roles across the FCA and Financial Services Authority in strategy, supervision, authorisations and enforcement, as well as roles in the banking and insurance sectors. Jo is also a Trustee of the Money and Mental Health Policy Institute.

Sir Martin Narey

Sir Martin Narey became Director General (Chief Executive) of the Prison Service (England and Wales) in 1998 and led prisons for seven years and prisons and the probation service for three. He was the recipient of The UK Chartered Institute of Management’s annual Gold Medal for Leadership. He was the first public sector recipient of this single annual award for ten years. He resigned from the Civil Service in 2005 to become Chief Executive of Barnardo’s. He has subsequently advised the government about children’s social care and has published a number of reports about the care system. He is Chair of My Foster Family; Chair Designate of The Sage (a music venue on Tyneside) and a NED on the board of Unilink Ltd. He is a visiting Professor at a number of Universities.

These roles are remunerated at £295 per day. These appointments have been made in accordance with the Cabinet Office’s Governance Code on Public Appointments, the process is regulated by the Commissioner for Public Appointments. The Government’s Governance Code requires that any significant political activity undertaken by an appointee in the last five years is declared. This is defined as holding office, public speaking, making a recordable donation or candidature for election. Neither Terry Babbs, Brian Bannister, Jo Hill or Sir Martin Narey have declared any activity.