Recommendation 10

HM Government Accepted

The government welcomes the Committee’s report on British film and high-end television (HETV), noting the significant time and commitment dedicated by the current Committee and its predecessor Committee in the last Parliament. We fully support the fundamental tenets of the report: that our vibrant UK film and HETV industry makes a vital economic, social and cultural contribution to the UK, and that it requires active support to thrive. The government’s commitment to this industry is absolute. We want the UK to be the best place in the world to make films and HETV, which is why film and TV has been identified as a priority for growth within our Creative Industries Sector Plan, which itself is a key component of the government’s Industrial Strategy. We have, with the Committee’s permission, delayed our response to the Committee’s report, so as to be able to incorporate key aspects of the Sector Plan into our response. In short, we want a healthy, mixed film and TV landscape, where public service broadcasters provide an engine room of creativity; where a strong independent sector creates more UK IP, producing and distributing British content seen at home and around the world; and where major inward investment continues to inject money into the economy, create jobs and nurture our creative and technical skills excellence. UK film and HETV content is amongst the best, from Bridgerton to Bridget Jones, and Rivals to Rye Lane, with iconic characters like Paddington, Wallace & Gromit and Harry Potter recognised around the world. UK production spend on film and HETV reached £5.6 billion in 2024, a 31% increase since 2023, with £4.8bn of this total coming from inward investment and co-productions.1 There are over 180,000 passionate, talented people working across film and television production.2 And we are at the cutting edge of creativity, with our strength in visual effects and virtual production positioning us well for next-generation content creation. The industry has experienced a tumultuous few years, from Covid-19 creating a period of hyper-demand, to the US Guild strikes in 2023 shutting down much of the production sector overnight, to newer concerns about the future of our mutually beneficial links with the US. The government recognises the challenges our domestic sector is facing - rising production costs,3 barriers in accessing finance, challenges around IP retention, difficulty finding freelance work,4 skills gaps,5 diversity challenges, and worsening mental health.6 We agree with the Committee on the need to ensure the resilience of our domestic sector and protect our domestic workforce, which is the bedrock of future growth and the only way to ensure the UK remains a powerhouse of British content creation. We will also remain a strong global partner and retain our position as a destination of choice for inward investment. This is a globally interconnected industry where productions are by their very nature international partnerships developed across borders and seeking international audiences. A strong UK industry provides mutual benefits to both the UK and its international partners, and we will continue to support the sector to collaborate with global partners and investors. We recognise there is no room for complacency in maintaining our international position of strength, with many other countries offering generous tax incentives, infrastructure investment, and financial support for content creation.7 The government agrees with the Committee that it is not just production but distribution and exhibition that underpin the economic and cultural success of the film and TV sector. Indeed, films that have a theatrical release tend to outperform ‘straight-to-streaming’ films.8 We recognise the challenges that cinemas are facing whilst still recovering from the impact of Covid-19. Whilst there have been changes in viewer habits and box office figures are yet to reach pre-pandemic levels,9 the box office success of recent releases such as A Minecraft Movie and Mission: Impossible – The Final Reckoning show that UK audience appetite for the big screen experience remains.10 We are already taking steps to stimulate the further growth of this sector, enhancing our competitive tax incentives with new tax support for independent film and an uplift in relief for visual effects, and providing business rates relief for film studios and for cinemas and other retail, hospitality and leisure businesses. Through the Sector Plan, we have announced a raft of new measures to support the growth of the creative industries, including film and TV as a priority, with action to tackle barriers in accessing finance; to accelerate innovation-led growth; to build a resilient, skilled creative workforce; and to deliver a forward-looking intellectual property regime that supports and protects rightsholders. We will also boost international trade and export, with a programme of activity to generate new international capital and a sign