Source · Select Committees · Culture, Media and Sport Committee
Recommendation 11
11
Not Addressed
Enhance HETV tax incentives to specifically benefit public service broadcasters and independent producers
Conclusion
Domestic HETV needs to be supported through enhanced tax incentives just as independent film has been. To tackle the issues facing domestic production, any increase in HETV tax relief must not merely incentivise streamers to spend more but specifically benefit public service broadcasters and independent producers. This might be done by limiting the uplift to HETV productions at the lower end of the budget range; however, further work is needed to build the economic case for this intervention. (Conclusion, Paragraph 48)
Government Response Summary
The government reiterates its commitment to competitive AVEC reliefs, including existing support for independent films and VFX, but does not specifically address the call for HETV tax relief designed to benefit public service broadcasters and independent producers with lower budget productions.
Government Response
Not Addressed
HM Government
Not Addressed
The government has shown its commitment to keeping the UK’s Audio-Visual Expenditure Credit (AVEC) competitive by providing additional support for independent films at a rate of 53% and introducing a 5% uplift in relief for VFX costs as of 1 April 2025. We will continue to work with stakeholders to ensure the continued effectiveness of AVEC reliefs. The government regularly engages with the BFI and the British Film Commission on the competitiveness of the UK’s offer, and analysis of global incentives is produced regularly by Olsberg SPI.14 Government benchmarking global incentives every six months would be a disproportionate exercise, not least because what attracts film makers to the UK is much broader than just our competitive tax incentives, with government investment in infrastructure, funding to attract inward investment, and support for skills development also contributing to our overall competitiveness. There are a multitude of factors to consider when deciding on new tax reliefs beyond return on investment and sector impact, and the government is committed to ensuring that all public money is spent and targeted effectively across the full breadth of the creative industries and the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the wider public finances. One of the major attractions of the UK’s tax incentives, beyond their competitiveness, is the ease, simplicity and consistency of the process. The government therefore currently has no plans to introduce additional complexities on reporting spending across nations and regions. We do strongly agree with the Committee on the merits of having better data on regional spend, and government will engage with BFI and industry partners to better understand the feasibility of reporting regional spend on a voluntary basis.