The United Kingdom’s independent film sector is facing a serious risk of market failure, according to producers who are calling for urgent government intervention. Industry conditions and inflation have created challenging circumstances for indie films, making it difficult for them to compete with high-end TV productions and big-budget U.S. studio films. In response to the U.K. government’s consultation on film and high-end TV, trade body Pact expressed deep concern for the struggling independent film sector in written evidence to the Department of Culture, Media and Sport.
Pact stated that without immediate government intervention, the independent film sector will no longer be viable, leading to negative impacts on talent development, job opportunities, and the wider audiovisual economy. The decline in indie films is attributed to difficulties in securing financing and the slow return of audiences to cinemas. To counter these challenges, Pact proposes increasing tax relief to 40% for films with budgets ranging from £1 million to £15 million.
Other industry stakeholders supporting Pact’s position include Paramount and U.K. broadcaster Channel 4, which also runs a feature film division called Film4. They highlight the additional challenges faced by independent projects due to streaming platforms, which have deeper pockets and are less affected by rising talent and crew wage costs. Film4 suggests increased support for indie film sales and distribution, such as removing VAT on exhibition and imposing greater obligations on streamers to back U.K. independent film.
Contributors to the government’s consultation also addressed various other issues, including the impact of artificial intelligence, exhibition windows, and changes in HMRC practices related to production fees and tax reliefs. Additionally, they emphasized the intense global competition to attract film and TV makers, warning that short-term policy changes or increased costs in the U.K. could lead to productions moving away from the country at short notice.
It is noted that the U.K.’s production sector is currently booming, but there is a need for proactive measures to maintain competitiveness in the face of global rivals. Fulwell 73, a U.K.-founded production company, highlighted that the industry is at a crucial turning point, with the potential for substantial growth in high-end TV production. However, the success of the industry depends on the actions taken by the U.K. to improve its offering and prevent rapid decline.
In conclusion, the U.K.’s independent film sector is in a precarious state, requiring urgent government intervention to ensure its viability. The government must take steps to address financing difficulties, changing viewer habits, and the cost of talent and crew. By implementing strategies such as increased tax relief and additional support for sales, distribution, and streamers, the U.K. can safeguard the indie film sector, nurture talent, and sustain economic growth in the audiovisual industry.
