The Culture, Media and Sport Committee has now published its ‘British film and high-end television’ report and urges government that tax breaks and a streamer levy should be on the table as part of an urgent package of support for the “UK’s crisis-hit high quality drama sector.”
The Committee made recommendations in the report on tax incentives, supporting the workforce, independent cinemas and meeting challenges posed by AI.
The report recommended measures to halt the decline of domestic UK-centred drama and film production “which has failed to keep pace with the headline-grabbing growth of big box office productions financed and controlled from outside the UK.”
It said that without “urgent intervention”, the problems seen in independent film will extend to the domestic high-end TV sector, “where competition from high-budget overseas production is driving up costs, revenue models are changing due to the terms offered by streamers and commissioning budgets of public service broadcasters are being squeezed by a fall in the licence fee and drop in advertising revenue.”
The Committee’s report is calling for enhanced tax incentives for domestic high-end TV, and for streamers to pay 5% of their UK subscriber revenue into a cultural fund to help finance drama with a specific interest to British audiences.
The Committee is also recommending a tax credit to support the distribution of lower budget films to sit alongside the recently announced Independent Film Tax Credit “or producers will continue to struggle to develop and raise finance for films, and those that are made will not be seen by audiences.”
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.
Today’s report sets out a way forward for the Government to put the name of the UK film and television industry up in lights around the world as the very best place to do business and to work, by offering the right tax incentives, tackling skills shortages, improving worker rights and making sure the rise of AI is a positive force, not a disincentive to investment.”
Responding to the report, Wolf Hall director Peter Kosminsky, said: “I hugely welcome the fact that the CMS select committee has endorsed the call for a 5% levy on streamers’ revenue to support public service broadcasting high-end television. This is a brave thing to do in the current political climate and absolutely the right solution. However, I do think it is important to stipulate that the fund created by this levy should only be available to productions which are either commissioned or co-commissioned by a public service broadcaster. As far as I can see, this isn’t made clear in the report and it is an essential aspect of the 5% levy solution to the problems our industry faces.”
Directors UK CEO, Andy Harrower, 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.”
Patrick Holland, Executive Chairman of Banijay UK, said: “We are pleased that the Committee is recognising the need for intervention in the scripted sector, however, we aren’t convinced the levy is the way forward. Banijay UK has long called for an increase in tax credits to support the mid-range UK production programming sector, which is at the most risk. Shows like Peaky Blinders, SAS Rogue Heroes, Richard Gadd’s new series Half Man, and Jack Thorne’s new C4 drama Falling required far more funding than the Public Service Broadcasting licence can provide to get into production. These types of shows, developed by brilliant British writers that speak directly to UK audiences, sit in the £2.5-3.5m bracket and are at real risk of not being made going forward if, as an industry, we can’t guarantee the funding they need. We need more help to be able to bridge the gap, and an increase in tax credit provides a suitable and practical option, derisking for distribution investors, while allowing the very best home-grown content to be made for UK audiences.”
In terms of the treatment of the freelance workforce, the report repeated its predecessor Committee’s call for the Government to appoint a Freelancers’ Commissioner, “with appropriate powers and cross-departmental oversight. The Freelancers’ Commissioner should work with the film and HETV industry to develop a framework for addressing pay precarity, hours, working conditions and behaviours that is published within 12 months of their appointment.”
In response, Head of Bectu Philippa Childs, 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.
“We have seen how power imbalances within the industry can enable a toxic culture. Those affected by bulling and harassment are often afraid to speak out for fear of being seen as a troublemaker, damaging their reputation and losing work. As the report says, the formation of CIISA is a huge step in the right direction, but it must have the full financial backing of industry with a commitment from government to step in should this not materialise.
“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% levy on streamers to support domestic production.”
Jon Creamer
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