Source · Select Committees · Welsh Affairs Committee
Recommendation 23
23
Accepted
Paragraph: 127
Require Governments to outline steps attracting streaming services and PSBs to Wales
Recommendation
Streaming companies provide an exciting opportunity for work for the independent production sector in Wales. They can provide an additional source of revenue to commissions from PSBs and help spread the word about the excellence of Welsh production companies. However, it can be difficult for a small nation such as Wales to attract investment and to highlight skills within its production sector. The Welsh and UK Governments must outline to us the steps they are taking to attract both PSBs and streaming services to produce more programmes in Wales. The UK Government should explain how it is harnessing the increased interest in Wales, especially in the USA, to attract streaming services to produce programmes in Wales.
Government Response Summary
The government accepted the recommendation, outlining steps such as existing and reformed screen sector tax reliefs, high UK production spend including in Wales, robust studio infrastructure, and BFI funding for skills development, with a Wales Skills Cluster expected in Q1 2024.
Paragraph Reference:
127
Government Response
Accepted
HM Government
Accepted
The Government notes this recommendation which is also for the Welsh Government. In 2022, the UK saw a record-breaking £6.27 billion of film and high-end TV (HETV) production spend, with inward investment accounting for £5.37 billion (86%), underlining the UK’s reputation as a world-leading location for film and TV production. Major productions filmed in Wales during this period include Sex Education (series four), Doctor Who (series 14 and anniversary special), The Pact II, and The Lazarus Project (series two). The UK Government has stable and generous screen sector tax reliefs available for film, HETV, animation, children’s TV and international co-productions. At Spring Budget 2023, the government announced that film, HETV, children’s TV and animation tax reliefs will be reformed into a single Audio-Visual Expenditure Credit (AVEC), which will provide a greater benefit than the current tax reliefs. Under the AVEC, film and HETV productions will be eligible for a credit rate of 34% and animation and children’s TV production will be eligible for a higher rate of 39%. DCMS has funded the British Film Commission (BFC) with £5 million over three years to support the growth of seven geographic production hubs across the UK nations, including Cardiff. The BFC has also provided considerable support to Wales’s expanding studio infrastructure since 2021 through its DCMS-funded Stage Space Support and Development (SSSD) initiative including investment, planning support and general guidance to separate studios and developments. In Wales, the BFC has supported Bay Studios Swansea and Dragon Studios, Great Point Seren Studios, Roath Lock Studios and Wolf Studios in Cardiff. The UK Government is also working to grow a UK-wide skilled workforce to meet the demand created by the screen tax reliefs. In April 2023, the British Film Institute (BFI) announced £9.6m of National Lottery funding over three years to support skills development and training across the UK. Six Skills Clusters have already been announced for: The North of England, the Metro-London Area, Scotland, West Midlands, Northern Ireland, and Berkshire. The BFI expects to make a further announcement on a Skills Cluster in Wales in the first quarter of 2024, in keeping with the fund’s stated ambition to establish at least one cluster in each nation of the UK. DCMS also provides funding to the National Film and Television School (NFTS) of approximately £2m per year to support NFTS sites, including NFTS Cymru Wales in Cardiff. They also receive regular funding from DfE, and have received government support for the duration of their 50 year history.