The UK’s Culture, Media and Sport Committee has released a report on the state of the British film and high-end TV (HETV) industries.
Welcoming government ambitions to make the UK “the best place to make film and high-end television” and initiatives such as last year’s introduction of the Independent Film Tax Credit scheme, the report cautioned against complacency and called for a regular assessment of tax incentives to ensure overseas investment is maintained.
However, the report also called for incentives to protect the domestic industry, which, it said, has failed to keep pace with the growth of productions financed and controlled from outside the UK. The committee warned that the problems seen in the independent sector could extend to the HETV sector, already facing competition from high-budget overseas productions and the challenge of changing revenue models.
Urging the government to go further, the committee called for an “urgent package of support” for the UK’s high quality drama sector. Additionally, it recommended tax breaks including a tax credit to support the distribution of lower-budget films along with further measures to support the independent film sector.
British content under threat
The committee also warned that the business models of streamers, which dictate that shows need to have global appeal to be funded, are placing distinctly British content under threat. Citing the importance of such content to “the UK’s identity, national conversations and talent pipeline,” the report suggested a “cutural fund” streamer levy for companies such as Netflix, Amazon, Apple TV+ and Disney+, which benefit from the creativity of British producers, to help finance dramas with specific interest to British audiences.
A range of recommendations to bolster skills and worker rights was also made, reinforcing the last committee’s recommendation for the appointment of a Freelancers’ Commissioner. Licensing of creative works should be required in all cases where they are used to train AI models.
In support of cinemas, the committee proposed the introduction of a core funding model for culturally significant independent cinemas.
Dame Caroline Dinenage MP, chair of the CMS Committee, said: “Big box-office blockbusters made in Britain have showcased the UK’s world-class film and high-end television industry like never before. But the boom in inward investment of recent years now risks crowding out our many talented independent British producers. While streamers like Netflix and Amazon have proved a valuable addition for the industry and economy, unless the Government urgently intervenes to rebalance the playing field, for every ‘Adolescence’ adding to the national conversation, there will be countless distinctly British stories that never make it to our screens.
“From independent production through to cinemas, all parts of our film and high-end TV sector, and the talented people that make it such a success, are going through a turbulent time. To neglect just one part puts the entire ecosystem at risk, so it’s therefore vital that the Government goes further and faster across the board to support an industry that is so important to both our economy and our soft power overseas.”
Responding to the report, Phillippa Childs, head of Bectu, said, “We welcome this timely and incisive report from the Committee which identifies many of the urgent challenges currently facing the industry and its workforce. It takes account of the evidence provided by Bectu in a number of its recommendations.
“Freelancers are the backbone of this sector and the attention paid in this report to their contribution and how better to support and protect them is very refreshing. The report recognises that increasingly precarious and unpredictable work is unsustainable. Failing to address the issues these challenges could result in the industry losing workers at a time when the Government have made wider commitments to employment rights and prioritised the creative industries within its industrial strategy.
“We urge the government to accept the recommendations to better support freelancers, in particular the committee’s support for the creation of a freelance commissioner which Bectu and other stakeholders have consistently argued for. This would be a vehicle for finding solutions to many of the issues facing freelancers such as intermittent work which can lead and has already led to financial crises for many Bectu members.
“It’s essential that the industry does not become too skewed towards large streamers, which risks the homogenisation of content and the loss of much of the UK’s unique and distinctive output. Public sector broadcasting is at the heart of this, and it is crucial that we have a level playing field that allows them to take risks and commission quintessentially British content. A secure future for public sector broadcasting, which sits at the heart of the UK film and TV ecosystem is essential and so we support the 5 per cent levy on streamers to support domestic production.”
Adrian Wootton OBE, chief executive of the British Film Commission, said, “There’s a lot to welcome in today’s report, not least the recommendation to increase funding for the UK Global Screen Fund and support for the BFI Certification Unit. But it is essential that the importance of inward investment – to which the SVoDs are a key contributor – is not underestimated.
“Inward investment – which reached £4.7bn last year – is the single biggest thing that has boosted growth in our industry and spread those benefits across the UK. Productions like Outlander in Scotland, Young Sherlock in Wales, Game of Thrones in Northern Ireland or Adolescence in Yorkshire have brought jobs to local crews, and spending to local areas. That investment in film and HETV is vital to keep our film and TV industry not just alive but kicking, in an increasingly competitive market. Of course, it should be one component amongst many in a wider UK production ecosystem, but our focus shouldn’t be at the expense of inward investment, and we remain extremely cautious of any measures that risk making us anti-competitive, especially given the current global market turbulence.”
“The report is also surprisingly silent on the vital importance of production support provided by the BFC and our national and regional partners, truly making the UK the best place in the world in which to produce film and television.”
“In particular, we question the report’s tone regarding streamers’ and studios’ investment into skills training throughout the UK. Far from ‘hiding’ or shirking the need to invest in UK skills, they have been proactive and willing partners in skills training. For example, collectively, the members of the UK Screen Sector Skills Task Force invested over £100 million in skills development in 2022 – more than the 1 per cent of production budgets recommended by the BFI Skills Review. That’s not to mention substantial additional investments in sustainability measures across productions, and initiatives to broaden inclusivity in our sector.”
In a statement. Andy Harrower, CEO of Directors UK, said, “Today’s report on British film and high-end television highlights the challenges facing the industry and the urgent need for action. In a global market, a strong UK production sector is crucial, but our public service broadcasters and independent filmmakers are under increasing pressure. Directors UK has long called for support, including better production funding, investment in skills, and improved freelancer rights. We’re encouraged to see our recommendations reflected in the report — it’s now imperative that they are implemented by the government.”
The full report can be accessed here.
