Recommendations & Conclusions
18 items
3
Recommendation
First Report - British film and high-en…
Rejected
The Government should immediately amend the definition of R&D for tax relief purposes so that it captures creative activity by the film and HETV sectors, and wider creative industries. (Recommendation, Paragraph 19)
Government response. The government rejects amending the definition of R&D for tax relief purposes. Instead, it will publish revised guidance in 2025 to clarify that arts activities contributing to scientific or technological advances are within the existing definition, thus supporting interdisciplinary innovation …
Department for Culture, Media and Sport
4
Recommendation
First Report - British film and high-en…
Rejected
The Government should immediately review the impact of changes to the Enterprise Investment Scheme and Seed Enterprise Investment Scheme on the film sector to ensure producers can and do access the full range of finance for their films. It should report its findings to us within six months. (Recommendation, Paragraph …
Government response. The government rejects the recommendation to immediately review the impact of EIS/SEIS changes on the film sector and report findings, stating it will continue to work with stakeholders but has no plans for a specific review.
Department for Culture, Media and Sport
5
Recommendation
First Report - British film and high-en…
Rejected
In the Autumn 2025 Budget, the Government should introduce a 25% tax relief for the Prints & Advertising (P&A) costs of films claiming the Independent Film Tax Credit, to support the distribution and exhibition of British films. (Recommendation, Paragraph 27)
Government response. The government rejects introducing a 25% tax relief for Prints & Advertising costs for films claiming the Independent Film Tax Credit, citing existing AVEC commitments, the Chancellor's discretion on tax policy, and a desire to avoid additional complexities.
Department for Culture, Media and Sport
8
Conclusion
First Report - British film and high-en…
Rejected
The UK has not adequately compensated for the loss of Creative Europe funding, of which it was a net beneficiary, and simply increasing UKGSF will not deliver all the benefits that membership of that network did. (Conclusion, Paragraph 34)
Government response. The government acknowledges the value of cultural exchange with Europe and is strengthening ties, but rejects rejoining Creative Europe, instead highlighting the scaled-up UK Global Screen Fund and other engagement as its means of supporting international ambitions.
Department for Culture, Media and Sport
9
Recommendation
First Report - British film and high-en…
Rejected
As part of the Review of the Implementation of UK-EU Trade and Co- operation Agreement in 2026 the Government should seek to rejoin Creative Europe as an associate member. (Recommendation, Paragraph 35) The crisis in domestic HETV
Government response. The government rejects the recommendation to rejoin Creative Europe as an associate member, stating it has no plans to do so, and instead focuses on strengthening UK-EU ties and scaling up the UK Global Screen Fund.
Department for Culture, Media and Sport
12
Recommendation
First Report - British film and high-en…
Rejected
We recommend the BFI urgently conducts analysis on the potential design and return on investment of a targeted uplift to HETV Audio-Visual Expenditure Credit for domestic productions with budgets of £1 million to £3 million per hour. The Government should commit to introducing the measure at the next fiscal event …
Government response. The government rejects the recommendation for the BFI to urgently conduct analysis on a targeted HETV tax uplift and for the government to commit to its introduction, instead reiterating its commitment to existing AVEC reliefs and general tax policy considerations.
Department for Culture, Media and Sport
19
Recommendation
First Report - British film and high-en…
Rejected
Twice a year, the Government should benchmark the value and eligibility criteria of the UK’s film and HETV tax incentives against those of other countries. Where the UK’s offer is found to be less competitive, the Government should immediately review the financial case for changing the 102 UK’s incentives in …
Government response. The government rejects the recommendation for twice-yearly benchmarking of tax incentives as a disproportionate exercise, stating they already regularly engage with BFI and British Film Commission, and analysis is produced by Olsberg SPI.
Department for Culture, Media and Sport
24
Recommendation
First Report - British film and high-en…
Rejected
To address the industry’s perceptions of organisational London-centric bias, the Government should split the roles of British Film Commission CEO and Film London CEO the next time that the existing contracts are negotiated or the roles advertised. (Recommendation, Paragraph 88)
Government response. The government rejects splitting the roles of British Film Commission CEO and Film London CEO, expressing support for the current CEO's delivery and stating it will keep arrangements under review for all publicly funded bodies.
Department for Culture, Media and Sport
25
Recommendation
First Report - British film and high-en…
Rejected
The Government must be fully engaged with the EU’s discussions on ‘European works’ and mitigate any potential changes to the UK’s status under it. We ask the Government to write to us every six months with its latest assessment of the EU and its member states’ positions, relevant debates and …
Government response. The government states it is engaging with European partners regarding 'European works' but rejects the specific request to provide six-monthly assessments to the Committee, believing it would not be appropriate or beneficial for international relations.
Department for Culture, Media and Sport
32
Recommendation
First Report - British film and high-en…
Rejected
We recommend that the Government introduces a statutory requirement for the entire film and HETV production industry to report their spending on skills and training as a percentage of their production budgets every financial year. (Recommendation, Paragraph 114) 104
Government response. The government rejects the recommendation to introduce a statutory requirement for the industry to report skills spending, arguing that such an intervention is not proportionate and would increase regulatory burden.
Department for Culture, Media and Sport
43
Recommendation
First Report - British film and high-en…
Rejected
All parts of the creative industries under CIISA’s remit should commit to unconditional, long-term funding within six months. In the meantime, the Government should explore all options for funding CIISA in case the industry does not deliver a voluntary solution. If linking eligibility for Audio-Visual Expenditure Credits with support for …
Government response. The government rejects exploring specific options like linking AVEC eligibility or imposing a levy to fund CIISA, citing concerns about complexity, deterring investment, and burdening businesses. It reiterates its expectation for voluntary industry support.
Department for Culture, Media and Sport
47
Recommendation
First Report - British film and high-en…
Rejected
It is understandable that the exhibition sector seeks a VAT reduction when it faces so many challenges around costs, box office revenue and infrastructure. However, those calls must be considered alongside the regular requests we hear for reduced rates of VAT from across the creative industries, and the Government’s broader …
Government response. The government rejects the recommendation, stating it has no plans to introduce a general VAT relief for cultural events, including cinema tickets, due to concerns about complexity, administrative costs, and potential economic displacement.
Department for Culture, Media and Sport
48
Recommendation
First Report - British film and high-en…
Rejected
We recommend that the Government reviews the impact of a permanent cut to VAT on entry to cultural events, including cinema tickets, to identify whether it would support the growth of the creative industries. (Recommendation, Paragraph 174)
Government response. The government rejects the recommendation to review a permanent cut to VAT on cultural events, stating it has no plans to introduce such a relief due to concerns about complexity, administrative costs, and potential economic displacement.
Department for Culture, Media and Sport
53
Recommendation
First Report - British film and high-en…
Rejected
The Government’s AI Sector Champion for the creative industries, once appointed, should work with the industry to develop an AI certification scheme for the ethical use of generative AI in film and HETV. In setting out guidelines for the responsible use of generative AI, the scheme should consider the interests …
Government response. The government will appoint an AI Sector Champion and is considering AI output labelling, but rejects a mandated certification scheme due to concerns about restricting innovation and complicating tax incentives.
Department for Culture, Media and Sport
63
Conclusion
First Report - British film and high-en…
Rejected
The amount of National Lottery funding available to the BFI must reflect its role and remit, which has changed considerably since the allocations were last set. Determining where an increase for the BFI might come from, however, requires a thorough review across the different sectors and distributing bodies. Such a …
Government response. The government rejected the recommendation, stating it believes it is important to maintain stability in the current allocation system and will not commit to a review at this time.
Department for Culture, Media and Sport
64
Recommendation
First Report - British film and high-en…
Rejected
We recommend the Government conducts a review of how National Lottery returns for good causes are allocated between distributing bodies by the end of the 2025-26 financial year. (Recommendation, Paragraph 223)
Government response. The government rejected the recommendation, stating it believes it is important to maintain stability in the current allocation system and will not commit to a review at this time.
Department for Culture, Media and Sport
65
Recommendation
First Report - British film and high-en…
Rejected
To safeguard our national collection of film and TV, and increase public access to it, the Government should introduce and resource a statutory deposit scheme for the moving image. Given the complexity and resource implications of this, the Government should first conduct research into a statutory deposit scheme for the …
Government response. The government rejected the recommendation, stating it has no plans to introduce a statutory deposit scheme due to its complexity and the BFI National Archive's capacity issues, though it will keep the recommendation under review.
Department for Culture, Media and Sport
66
Recommendation
First Report - British film and high-en…
Rejected
The Government should introduce targeted copyright exemptions that allow for greater access to archive material without harming copyright holders. Those include adjusting legislation concerning ‘dedicated terminals’, broadening the definition of ‘educational establishments’, amending the ‘2039’ rule, and introducing exemptions for orphan works and commercially unavailable works. (Recommendation, Paragraph 234)
Government response. The government rejected the recommendation, stating it has no plans for legislative action to introduce copyright exemptions, though it will keep the recommendation under consideration.
Department for Culture, Media and Sport