This Week in Public Affairs: 29 May 2020

This week in Public Affairs was an exciting one as the AA moves forward with our tax credit proposal for advertising, something we believe could aid the wider economic recovery of the country following COVID-19. Another highlight was our first European COVID-19 information sharing call, speaking to trade associations and industry members from across the continent to share experiences, information, and plans for economic recovery.

We also have a number of ongoing projects which we continue to work on, including climate action, food advertising, and data and e-privacy.

Tax Credit Proposal

The AA has been working to develop a proposal for a tax credit for advertising and marketing services to boost the economy as we move towards recovery. As well as acting as crucial support of media, journalism and culture, advertising has a significant multiplier effect, with every £1 of adspend delivering £6 to GDP.  We therefore believe tax credit for advertising could be a key driver for economic recovery.

Last week we wrote to the Department for Culture, Media and Sport (DCMS) with our proposal, and this week started working to further develop the econometric modelling to support our case.

Work with Government

Our Chief Executive, Stephen Woodford, spoke to the Minister for Business and Industry Nadhim Zahawi yesterday, representing the advertising industry on a weekly call with the Department for Business, Energy and Industrial Strategy’s (BEIS) Professional and Businesses Services sector team.

We also submitted evidence to two ongoing government inquiries on the impact of COVID-19, one to BEIS and another to DCMS.

We will be continuing our conversations with civil servants from both Whitehall and Holyrood next week, along with our members, on our COVID-19 information sharing calls.

European collaboration

This week we hosted our first COVID-19 information sharing call with the  Advertising Information Group (AIG), our European network. The discussions centred around the impact of the crisis on industry, both nationally and at a European level, and the consequences for European policy and lobbying going forward. These calls will take place monthly.

Industry collaboration

The AA participated in the Confederation of Business and Industry’s (CBI) Trade Association Trade Group this week, representing the advertising sector. The group meets to discuss the wider economic effects of COVID-19, political outreach and communications.

Keep an eye out : furloughing announcement

The Chancellor, Rishi Sunak, is expected to make an announcement later today regarding the details of how the funding of the Job Retention Scheme will work from August. Furloughed employees will be able to return to work part-time, and it is understood that employers will need to make some contributions towards their salaries. The details will be published on our website once they are released.