20% Magazine Jobs At Risk Says PPA

The Periodical Press Association issued a warning to publishers this morning that over 4,000 jobs could be lost within the magazine industry if the Government pushes ahead with its intention to add 17.5% VAT to all magazines and newspapers.

Speaking at a press conference Neil McRae, chairman of the PPA, introduced a report issued by the association in conjunction with accountants BDO Binder Hamlyn, which pulls no punches when describing the future of the magazine industry if the tax imposition goes ahead;

• 1700 magazines may have to close
• This would result in up to 4200 job losses
• £108m loss in profit
• £43m in redundancy costs

Controlled circulation magazines would suffer most from the addition of tax as they are already taxed on advert- ising income, hence it would constitute double taxation. If free publications are excluded from the arrangement there would still be up to 650 closures of paid-fors and at least 1,150 job losses.

By adding 17.5% VAT to UK publications it would make our magazine industry the most heavily taxed in Europe, with the risk being that publishers will move their operations elsewhere to avoid the high rates. “The new tax will send a series of shock waves through the industry” says the report, “which will take varying amounts of time to have their full impact”.

In the run up to the budget the PPA plans to meet with Government ministers to discuss the implementation. It has also begun a print campaign which has received an enthusiastic response from publications.

PPA: 071 379 6268