Source · Select Committees · Culture, Media and Sport Committee
First Report - British film and high-end television
Culture, Media and Sport Committee
HC 328
Published 10 April 2025
Recommendations
3
Rejected
Amend R&D tax relief definition to capture creative activity in film and HETV sectors.
Recommendation
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 Summary
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 without a definitional change.
Department for Culture, Media and Sport
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4
Rejected
Review Enterprise and Seed Enterprise Investment Schemes' impact on film sector finance access.
Recommendation
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 …
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Government Response Summary
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
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5
Rejected
Introduce 25% tax relief for P&A costs of films claiming Independent Film Tax Credit.
Recommendation
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)
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Government Response Summary
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
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7
Accepted
Increase UK Global Screen Fund budget in line with BFI Spending Review bid.
Recommendation
The Government should increase the budget for the UK Global Screen Fund in line with the BFI’s Spending Review bid to provide certainty and maximise the potential return on investment. (Recommendation, Paragraph 33)
Government Response Summary
The government agrees and has committed to increasing the UK Global Screen Fund budget from £7 million to £18 million per year as part of its new £75 million Screen Growth Package (2026–2029).
Department for Culture, Media and Sport
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9
Rejected
Seek to rejoin Creative Europe as an associate member during 2026 UK-EU Trade Review
Recommendation
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 Summary
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
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12
Rejected
Conduct urgent analysis on targeted HETV Audio-Visual Expenditure Credit uplift for domestic productions
Recommendation
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 …
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Government Response Summary
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
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14
Acknowledged
Commission research on applying regulatory measures to SVoD platforms for IP ownership
Recommendation
We recommend the Government immediately commissions research on how regulatory measures, akin to the PSB terms of trade, could be applied to SVoD platforms to ensure that independent production companies developing IP in the UK maintain a minimum level of …
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Government Response Summary
The government commits to supporting the domestic sector and culturally relevant UK content, and will build on the Media Act and Ofcom's review to support public service media, but does not commit to immediately commissioning research on applying PSB terms of trade to SVoD platforms.
Department for Culture, Media and Sport
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16
Not Addressed
Implement a 5% levy on SVoD UK subscriber revenue for domestic HETV production
Recommendation
We recommend that all subscription video-on-demand (SVoD) platforms that operate in the UK pay a 5% levy on their UK subscriber revenue into a cultural fund administered by the BFI to support domestic HETV production. The industry should establish this …
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Government Response Summary
The government commits to supporting the domestic sector and culturally relevant UK content, and will build on the Media Act and Ofcom's review to support public service media, but provides no specific response to the recommendation for a 5% SVoD levy.
Department for Culture, Media and Sport
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19
Rejected
Benchmark UK film and HETV tax incentives against international competitors and review changes.
Recommendation
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 …
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Government Response Summary
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
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22
Accepted
Prioritise growth sectors like film and HETV in business rate reforms to support investment.
Recommendation
In delivering its promised reform of business rates, the Government should prioritise growth sectors such as film and HETV and ensure reforms support, rather than undermine, investment in them. (Recommendation, Paragraph 81)
Government Response Summary
The government has accepted the recommendation, stating it is transforming business rates in co-design with creative sectors and has already introduced a 40% reduction for film studios until 2034. It will publish an interim report on business rates reform this summer with further policy details by Autumn Budget 2025.
Department for Culture, Media and Sport
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23
Accepted in Part
Require AVEC productions to report spending breakdown across UK nations and regions.
Recommendation
The Government should require productions claiming AVEC to report a breakdown of their spending across the nations and regions of the UK. This would improve data on the national and regional distribution of production spend and support the case for …
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Government Response Summary
The government rejects requiring productions to report regional spending due to concerns about adding complexity to tax incentives, but agrees on the merits of better regional data and will engage with BFI and industry partners to explore voluntary reporting.
Department for Culture, Media and Sport
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24
Rejected
Split British Film Commission and Film London CEO roles to address London-centric bias.
Recommendation
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)
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Government Response Summary
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
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25
Rejected
Engage with EU 'European works' discussions and report actions to protect UK status.
Recommendation
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 …
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Government Response Summary
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
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26
Acknowledged
UK film and HETV industry remains exposed to global investment market forces.
Recommendation
It is tempting to see 2023’s inward investment crisis as a blip, but while the UK remains so exposed to US investment global political and market forces will continue to affect our film and HETV industry. Our recommendations to support …
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Government Response Summary
The government acknowledges the importance of avoiding complacency to maintain the UK's international position in the film and HETV industry and commits to remaining a strong global partner and destination for inward investment.
Department for Culture, Media and Sport
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30
Accepted
Link future public funding for ScreenSkills to specific, measurable performance outcomes.
Recommendation
We recommend that the Government link any future public funding for ScreenSkills to specific, measurable outcomes based on it publishing and meeting ambitious and robust performance indicators. (Recommendation, Paragraph 108)
Government Response Summary
The government agrees that public funding for ScreenSkills should be linked to effective delivery and notes that 2025/26 grant funding for the Creative Careers Programme is already tied to specific, measurable outcomes.
Department for Culture, Media and Sport
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32
Rejected
Introduce statutory requirement for film and HETV industry to report annual training spending.
Recommendation
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
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Government Response Summary
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
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33
Deferred
Government must ensure the Growth and Skills Levy fully benefits film and HETV sectors.
Recommendation
We welcome the Government’s plans for a Growth and Skills Levy that meets the needs of the film and HETV sectors, and wider creative industries. The rollout of shorter apprenticeships is welcome, but the Government must now go further to …
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Government Response Summary
The government committed to scaling up the UK Global Screen Fund from £7 million to £18 million per year as part of a new £75 million Screen Growth Package. However, this action relates to a different fund and did not directly address maximizing the use of skills levy funds for apprenticeships as requested.
Department for Culture, Media and Sport
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39
Accepted in Part
Set out specific measures to address pay precarity for creative industry freelancers.
Recommendation
In its forthcoming industrial strategy, the Government should set out specific measures to address pay precarity among freelancers working across the creative industries, such as a guaranteed basic income or minimum hourly wage. (Recommendation, Paragraph 136)
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Government Response Summary
The government commits to appointing a creative freelance champion by 2025 and highlights existing measures to tackle late payments and introduce written contracts. However, it explicitly rejects plans to introduce a guaranteed basic income or minimum hourly wage for creative freelancers.
Department for Culture, Media and Sport
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40
Accepted
Systemic working condition issues persist in film and HETV, causing worker loss.
Recommendation
The film and HETV industry will continue to lose workers if it does not address systemic issues with working conditions, and the Government should hold it accountable for doing so. The prioritisation of the predominantly freelance creative industries in the …
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Government Response Summary
The government accepts the need for a dedicated freelance voice and will appoint a creative freelance champion within DCMS by 2025 to advocate for the sector. It also highlights broader measures to strengthen rights and protections for the self-employed.
Department for Culture, Media and Sport
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42
Accepted
Lack of industry support undermines Creative Industries Independent Standards Authority.
Recommendation
It is in the film and HETV industry’s interests to tackle bullying and harassment through effective self-regulation. Yet for the Creative Industries Independent Standards Authority (CIISA) to operate effectively, the industry must see supporting it financially and ideologically to be …
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Government Response Summary
The government states the Secretary of State has unequivocally supported CIISA and reserves the right to intervene if the industry does not provide forthcoming support, thereby sending a strong message to compel industry backing.
Department for Culture, Media and Sport
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43
Rejected
Require creative industries under CIISA's remit to commit to unconditional funding.
Recommendation
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. …
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Government Response Summary
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
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45
Accepted
Significantly increase BFI funded short film schemes in the nations and regions.
Recommendation
We recommend that the BFI significantly increase the number of funded short film schemes in the nations and regions. This could be rapidly delivered though BFI Skills Clusters by targeting funding to schemes giving the next generation of filmmakers the …
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Government Response Summary
The government welcomes the recommendation and highlights the BFI's existing NETWORK programme, which supports early career filmmakers across the UK. It states the BFI regularly reviews its offer and will continue to champion new filmmakers, but does not commit to a significant increase in schemes.
Department for Culture, Media and Sport
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47
Rejected
Stronger case now exists for assessing VAT cuts across the creative industries.
Recommendation
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 …
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Government Response Summary
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
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48
Rejected
Review the impact of a permanent VAT cut on entry to cultural events.
Recommendation
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 Summary
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
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49
Deferred
Independent cinemas require ongoing organisational and capital funding for their vital cultural roles
Recommendation
Independent cinemas need and deserve organisational and capital funding to continue to perform their vital cultural roles in the heart of communities. Without it, there is a risk that the Culture Recovery Fund’s investment in independent cinemas will have been …
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Government Response Summary
The government states it is actively considering the recommendation and highlights that broader programmes like the Plan for Neighbourhoods offer £1.5 billion to towns, which *could* be used to support local cultural offerings, including cinemas.
Department for Culture, Media and Sport
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50
Deferred
Fund BFI proposals to deliver core and capital funding for independent cinemas
Recommendation
The Government should fund the BFI’s proposals to deliver core funding, similar to Arts Council England’s National Portfolio Organisation model, for independent cinemas. This should include a capital funding pot to upgrade cinemas’ infrastructure and improve their energy efficiency. (Recommendation, …
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Government Response Summary
The government states it is actively considering the recommendation to fund BFI proposals for core funding for independent cinemas. It also highlights broader government programs like the Plan for Neighbourhoods that could potentially support cultural offerings, including local cinemas.
Department for Culture, Media and Sport
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52
Accepted
Fund BFI’s development of an AI observatory and tech demonstrator hub
Recommendation
At the Spending Review, the Government should fund the BFI’s development of an AI observatory and tech demonstrator hub to enable it to provide effective leadership around the industry’s use of AI. (Recommendation, Paragraph 186)
Government Response Summary
The government is investing £25 million in five new CoSTAR research and development labs and two showcase spaces, which will include a tech demonstrator and other capabilities, and will work with the BFI to deliver this proposition.
Department for Culture, Media and Sport
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53
Rejected
Develop and mandate ethical AI certification for generative AI use in film and HETV
Recommendation
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 …
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Government Response Summary
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
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55
Deferred
Require AI developers to license copyrighted works before training AI models
Recommendation
The Government should abandon its preference for a data mining exception for AI training with rights reservation model, and instead require AI developers to license any copyrighted works before using them to train their AI models. (Recommendation, Paragraph 194)
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Government Response Summary
The government is considering 11,500 consultation responses and will provide an economic impact assessment and a report on copyright and AI training within nine months of the Data (Use and Access) Act 2025 Royal Assent, establishing working groups and a Creative Content Exchange, keeping an open mind on all options rather than committing to licensing now.
Department for Culture, Media and Sport
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58
Deferred
Legislate to prevent historical contract waivers from allowing AI use of recorded performances
Recommendation
The Government should legislate to prevent historical contract waivers from being interpreted to allow the use of recorded performances by AI tools. (Recommendation, Paragraph 207)
Government Response Summary
The government states it keeps legal frameworks under review and has committed to a report on copyright and AI training, but cannot commit to specific legislative action now as it is undertaking further analysis on ratifying the Beijing Treaty.
Department for Culture, Media and Sport
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59
Deferred
Conduct a review of copyright and GDPR to prevent unlicensed data use for AI.
Recommendation
Within the next six months the Government should also conduct a review of the Copyright, Designs and Patents Act 1988 and the UK’s GDPR framework to consider whether further legislation is needed to prevent unlicensed use of data for AI …
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Government Response Summary
The government states it keeps legal frameworks under review, has committed to publishing a report on copyright and AI training within nine months of the Data (Use and Access) Act 2025 Royal Assent, and is undertaking further analysis on the Beijing Treaty, but does not commit to the requested review of CDPA and GDPR within six months.
Department for Culture, Media and Sport
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62
Deferred
Ensure screen sector tax incentive changes increase BFI Certification Unit grant-in-aid settlement.
Recommendation
At each Spending Review, the Government should ensure any recent or upcoming changes to the screen sector’s tax incentives, including but not limited to the addition of new forms of expenditure credit, are reflected in a commensurate increase in the …
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Government Response Summary
The government's response broadly committed to supporting the domestic screen sector, including through public service media and business rates reform. However, it did not address the specific recommendation to link changes in screen sector tax incentives to a commensurate increase in funding for the BFI's Certification Unit.
Department for Culture, Media and Sport
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64
Rejected
Conduct a review of National Lottery good cause allocations between distributing bodies.
Recommendation
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 Summary
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
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65
Rejected
Conduct research into a statutory deposit scheme for safeguarding moving image archives.
Recommendation
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 …
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Government Response Summary
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
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66
Rejected
Introduce targeted copyright exemptions to increase access to archive material.
Recommendation
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 …
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Government Response Summary
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
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68
Deferred
Create a National Screen Heritage Strategy with BFI covering funding, skills and infrastructure.
Recommendation
Within the next 12 months, the Government should work with the BFI and wider screen heritage sector to create a National Screen Heritage Strategy, including in the areas of funding, skills and infrastructure. The strategy should be reviewed and renewed …
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Government Response Summary
The government deferred the recommendation, stating it will consider it with the BFI but cannot commit to undertaking the project without a resource assessment, also suggesting the BFI is better placed to lead.
Department for Culture, Media and Sport
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Conclusions (32)
1
Conclusion
Acknowledged
The Independent Film Tax Credit is a game-changer for domestic production and a welcome sign of continued Government commitment to the sector. But it is not a silver bullet for all the problems facing independent British film. Without further intervention, producers will still struggle to develop and raise finance for …
Government Response Summary
The government acknowledges the vital contribution of the film and HETV industry and its commitment to its growth. It highlights competitive tax incentives, business rates relief, and new measures from the Creative Industries Sector Plan to support the sector's growth, including tackling finance barriers and building a skilled workforce.
2
Conclusion
Accepted in Part
Development is the essence of R&D in the film sector. Funding it is essential for producers to develop valuable intellectual property, pay creative teams from the earliest stages of a project and maintain a consistent slate of films. This is vital for the Government’s growth agenda, as funding production companies’ …
Government Response Summary
The government, while not changing the R&D definition, will publish revised guidance in 2025 clarifying that arts activities contributing to scientific or technological advances are within the scope of R&D tax reliefs. This aims to support eligible interdisciplinary innovation.
6
Conclusion
Accepted
The UK Global Screen Fund delivers excellent value for money, but is insufficient in level and scope to provide the support that our independent film sector requires. (Conclusion, Paragraph 32) 100
Government Response Summary
The government agrees the UK Global Screen Fund is insufficient and has committed to scaling it up from £7 million to £18 million per year as part of a new £75 million Screen Growth Package (2026–2029).
8
Conclusion
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 Summary
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.
10
Conclusion
Accepted
Culturally British domestic HETV is vital to the UK’s identity, national conversations and talent pipeline, but it is under threat. Without urgent intervention, history will repeat itself and the problems that have been seen in independent film will extend to our once vibrant domestic television sector. (Conclusion, Paragraph 47)
Government Response Summary
The government fully supports the report's premise about the vital contribution of UK film and HETV, acknowledging the need for active support and outlining existing competitive tax incentives, business rates relief, and new measures from its Creative Industries Sector Plan.
11
Conclusion
Not Addressed
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 …
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.
13
Conclusion
Acknowledged
The success of the UK’s HETV sector relies on continuing to attract inward investment while maintaining a vibrant domestic industry underpinned by strong intellectual property rights. Yet the dynamic between independent producers and subscription video-on-demand (SVoD) platforms is not sustainable, and successful production companies are being gutted by deals that …
Government Response Summary
The government is committed to strengthening the domestic sector and recognizes the challenges around IP retention for independent producers in deals with SVoD platforms. It will build on the Media Act and Ofcom’s Public Service Media review and use the Industrial Strategy to improve investment conditions for producers.
15
Conclusion
Acknowledged
In HETV, the balance between inward investment and domestic production is at a tipping point. It is time for streamers to put their money where their mouth is. They laud the UK’s mixed production ecology, with public service broadcasters and independent producers at its heart, but their business practices are …
Government Response Summary
The government commits to supporting the domestic sector and culturally relevant UK content, and will build on the Media Act and Ofcom's review to support public service media, but does not propose specific action to compel streamers to increase their support.
17
Conclusion
Acknowledged
Advertising revenue is key to the HETV production ecosystem, and the market is changing as SVoD platforms grow their ad-supported subscription tiers. We intend to revisit the issue of advertising and its role in the TV ecosystem later in the Parliament. (Conclusion, Paragraph 64) Incentivising inward investment
Government Response Summary
Acknowledges advertising revenue is key and intends to revisit the issue later in the Parliament.
18
Conclusion
Accepted
The Government is right to commit to maintaining the competitiveness of the UK’s tax incentives, and changes must be balanced with stability. Yet the production sector is much more agile than Government, and the time it took to reform expenditure credits for VFX shows that policymaking and implementation needs to …
Government Response Summary
The government states it has already shown commitment to keeping AVEC competitive by providing additional support for independent films and introducing a 5% uplift for VFX costs from April 2025, and will continue to work with stakeholders.
20
Conclusion
Acknowledged
We are not convinced that Audio-Visual Expenditure Credits are the best vehicle to incentivise wider industry practices, if doing so undermines the fundamental aim of attracting investment. (Conclusion, Paragraph 76)
Government Response Summary
The government implicitly acknowledges the committee's concern by highlighting its commitment to keeping AVEC competitive through additional support for independent films and VFX uplift, and continuing to work with stakeholders to ensure its effectiveness in attracting investment.
21
Conclusion
Accepted in Part
It is concerning that the Government does not know how much additional studio space the UK will need to support both inward investment and domestic production in the years ahead. Recent business rates revaluations also risked devastating inward investment in studios across England and Wales. That must not happen again. …
Government Response Summary
The government addresses concerns about business rates by highlighting a 40% reduction for eligible film studios until 2034, and stating it will publish an interim report on business rates reform this summer with further details by Autumn Budget 2025.
27
Conclusion
From our world-class actors, writers, composers and directors to our highly skilled VFX artists and dedicated, hair and make-up professionals, costume designers and technical crew members, the people that make, distribute and exhibit British films and HETV programmes are a key reason the industry is a global success story. (Conclusion, …
28
Conclusion
Acknowledged
The film and HETV industry has been too slow to respond to skills shortages. That has had serious consequences for those working in it, and for the ability of domestic productions to afford to pay crews and creatives. Countless reviews, reports, strategies and plans for tackling this crisis have been …
Government Response Summary
The government agrees on the importance of data for a coherent skills strategy, viewing it as an industry-led effort, and explicitly states it does not support a statutory intervention across the industry.
29
Conclusion
Accepted
We are not convinced ScreenSkills is up to the challenge of delivering meaningful action on skills and training. It has been slow to grasp the urgency of the situation, to identify its priorities and performance indicators and ultimately to tackle the root causes with confidence and authority. (Conclusion, Paragraph 107)
Government Response Summary
The government agrees public funding for ScreenSkills must be linked to effective delivery, stating that current grant funding for the Creative Careers Programme is already tied to specific outcomes and ScreenSkills is delivering new work under its five-year strategy.
31
Conclusion
Acknowledged
Given how important skills are to the film and HETV industry, we are surprised that major streamers and studios could not give us a straight answer on how much they spend on training. The companies either don’t know how much they are spending or have something to hide. Either way, …
Government Response Summary
The government agrees that data on industry investment in skills and training is vital for a coherent strategy, but believes this should be an industry-led effort and does not support a statutory intervention.
34
Conclusion
Accepted in Part
The Growth and Skills Levy must be fully compatible with work in the film and HETV sectors by: (Recommendation, Paragraph 120) • Ensuring portability of apprenticeships between employers; • Supporting smaller companies with the overhead costs of delivering apprenticeships; • Incentivising high-quality training providers and higher education institutions to provide …
Government Response Summary
The government commits to refining the Growth and Skills offer for creative industries, including shorter apprenticeships from August 2025 and new short courses from April 2026, and will consider smaller employers' needs. It is exploring the portability of apprenticeships but has not yet fully committed.
35
Conclusion
Accepted
Skills will be vital to the ability of the film and HETV sectors to contribute to the Government’s industrial strategy, but the Department for Culture, Media and Sport does not have enough of a stake in driving the skills agenda across Government. It is relying on the goodwill of the …
Government Response Summary
The government commits to refining the Growth and Skills offer with industry, introducing shorter and flexi-job apprenticeships from August 2025, and launching new short courses from April 2026 to address specific skills needs in the creative industries. It is also exploring the portability of apprenticeships.
36
Conclusion
Accepted
The range of roles required to make film and HETV means entire cohorts of sixth-form students could find jobs in the industry that fit their skills and interests, and building awareness of career opportunities is essential to attracting new talent into the industry. However, there remains a clear need to …
Government Response Summary
The government agrees on the need to convince young people about viable careers in film and HETV, highlighting existing initiatives like the Creative Careers Programme, an upcoming £3 million creative careers service from 2026, and the scaling up of the BFI Film Academy.
37
Conclusion
Accepted
The Government and BFI should launch a national awareness campaign highlighting the employment opportunities offered by film and HETV, and the range of skills the industry requires. (Recommendation, Paragraph 127)
Government Response Summary
The government commits to a communications campaign as part of the Creative Careers Programme, launching a refreshed £3 million per year creative careers service from 2026, and scaling up the BFI Film Academy to promote employment opportunities in film and HETV.
38
Conclusion
Accepted in Part
The British film and HETV industry benefits hugely from the flexibility afforded by a predominantly freelance workforce, but in return both it and the Government need to do more to support freelancers when they are out of work. (Conclusion, Paragraph 135) 105
Government Response Summary
The government commits to appointing a creative freelance champion in 2025 and outlines ongoing work to strengthen rights and protections for the self-employed, including measures against late payments. However, it explicitly rejects introducing a guaranteed basic income for creative freelancers.
41
Conclusion
Accepted in Part
We repeat our 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 …
Government Response Summary
The government will appoint a creative freelance champion by 2025 to advocate for the sector, but states this is different from the recommended Freelancers' Commissioner role which would require more infrastructure and time to implement.
44
Conclusion
The industry’s attempts to become more inclusive and representative of communities across the UK have made some progress in terms of the stories that are being told and the people working in front of and behind the camera. But the film and HETV sectors remain highly under-representative, and more must …
46
Conclusion
Not Addressed
The problem facing cinemas is not that too few films are being released; it is that there is not enough variety and quality in the films that are reaching cinemas to tempt cinemagoers through the doors. The solution is therefore not simply more films, but better films with improved marketing. …
Government Response Summary
The government highlights its commitment to AVEC competitiveness for independent films and VFX, and general considerations for new tax reliefs, but does not directly address the recommendation for a distribution tax relief.
51
Conclusion
Accepted
Industry guidelines based around protecting human creativity in the use of generative AI are welcome, but the film and TV sectors are calling out for help to embrace the growth potential of generative AI in a way that is fair, responsible and legally compliant. (Conclusion, Paragraph 185)
Government Response Summary
The government commits to appointing an AI Sector Champion and is considering the case for regulation on labelling generative AI outputs, having recently held a Copyright and AI consultation, to help the sector embrace AI fairly and responsibly.
54
Conclusion
Deferred
Getting the balance between AI development and copyright wrong will undermine the growth of our film and HETV sectors, and wider creative industries. Proceeding with an ‘opt-out’ regime stands to damage the UK’s reputation among inward investors for our previously gold-standard copyright and IP framework. (Conclusion, Paragraph 193)
Government Response Summary
The government is considering 11,500 consultation responses and will provide an economic impact assessment and a report on copyright and AI training within nine months of the Data (Use and Access) Act 2025 Royal Assent, establishing working groups and a Creative Content Exchange to inform its position.
56
Conclusion
Acknowledged
Our world-class creatives are the lifeblood of the UK’s film and HETV sectors. However, the rapid growth of generative AI technologies threatens their earnings and future employment opportunities. This is not just an issue for one part of the industry: it about real lives and livelihoods, and the impact will …
Government Response Summary
The government keeps legal frameworks under review, noting updates in the Data (Use and Access) Act 2025 and a commitment to publishing a report on copyright and AI training, while also undertaking further analysis on ratifying the Beijing Treaty.
57
Conclusion
Acknowledged
Although the film and HETV industry may be motivated to protect performers’ interests, with the history of collective bargaining agreements equipping it do so, that situation is not common across all the creative industries. The UK’s patchwork of copyright, intellectual property and data protection legislation is failing to protect performers …
Government Response Summary
The government keeps legal frameworks, including copyright and data protection, under review, noting updates in the Data (Use and Access) Act 2025 and a committed report on AI training, alongside further analysis on ratifying the Beijing Treaty.
60
Conclusion
Deferred
We repeat our predecessor Committee’s calls for the Government to implement the Beijing Treaty within the next six months, including extending unwaivable moral rights to audiovisual performances. (Recommendation, Paragraph 209) The work of the BFI
Government Response Summary
The government is undertaking further analysis on ratifying the Beijing Treaty and will announce its intended approach when complete, but cannot commit to implementing it or taking legislative action within the six-month timeframe.
61
Conclusion
Accepted
Too often the BFI’s responsibilities have been expanded by the Government without a commensurate, long-term increase in the grant-in-aid support available to it. That has put the UK’s reputation with inward investors at risk and could undermine the growth of the vital sectors under its remit. (Conclusion, Paragraph 216)
Government Response Summary
The government has provided a £1 million increase in the BFI’s Grant-in-Aid for 2024/25 and 2025/26, committing to continue this funding into the next Spending Review period (2026–2029) to provide stability for the Certification Unit.
63
Conclusion
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 Summary
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.
67
Conclusion
Deferred
The Government, in collaboration with the screen heritage sector and education providers, should develop a degree-level apprenticeship standard for film preservation and presentation within the next 24 months. To enable education institutions to deliver apprenticeships with small student cohorts, the Growth and Skills Levy should provide dedicated funding to make …
Government Response Summary
The government redirected the recommendation, stating that apprenticeship standards are developed by employer-led trailblazer groups and Skills England would consider any new proposals, while the BFI would work with industry on such proposals.