Despite its cultural and economic importance, the independent British film sector is "in crisis." In 2024, UK domestic films accounted for just 9% of total production spend and under 7% of box office revenue. The report highlights a “perfect storm” of stagnant budgets, reduced financing options, rising costs, and squeezed distribution, which together jeopardize the future of distinctly British stories.
The Committee welcomed the recently introduced Independent Film Tax Credit (IFTC) as a positive step—offering a 40% effective relief for productions under £15 million. But this alone, it says, is insufficient. Without new investment in development funding, expanded R&D tax reliefs, and stronger distribution incentives, many British films may never reach screens.
Domestic HETV: A Hidden Emergency
High-end television is one of the UK’s fastest-growing creative exports. But domestic HETV production—especially from public service broadcasters (PSBs)—is suffering. Between 2023 and 2024, the number of domestic productions fell by 27%, and investment dropped 25%.
The report proposes a targeted uplift to HETV tax relief for UK-based productions with budgets between £1 million and £3 million per hour, particularly those developed by PSBs and regional producers. This would help ensure a steady pipeline of local stories and talent, while balancing the dominance of inward investment-driven content.
The report shines a light on precarious employment conditions in the industry. Freelancers face months of unemployment, a culture of overwork, and a troubling persistence of bullying and harassment. It calls for the creation of a Freelancers' Commissioner to advocate for better protections, as well as reforms to the Apprenticeship Levy to better serve creative industries.
Artificial Intelligence presents both promise and peril for the screen industries. The Committee insists the government must strengthen copyright law to ensure creatives are paid when their work is used to train AI models. Performer rights, transparency, and consent are also emphasized, especially as AI-generated content becomes more sophisticated.
The British Film Institute (BFI) is praised for its efforts, but the report recommends increased support to expand the UK Global Screen Fund and modernise screen heritage. As for cinemas—especially independents—the Committee urges reduced VAT on tickets and a new funding model to secure their long-term future.The Committee calls for bold, coordinated action to strengthen the UK’s screen industries. Tax relief should be expanded to include distribution and marketing, while reforms to R&D and investment schemes will help unlock creative growth.Boosting tax credits for lower-budget HETV productions will support homegrown stories, and protecting IP rights ensures creators benefit from their work in the streaming age. Rejoining Creative Europe and investing in cinemas—through VAT cuts and strategic funding—will reinforce the industry’s foundation.The message is clear: the UK must be a place not just to make content, but to create, own, and celebrate distinctly British stories.
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