UK DCMS Committee Issues Recommendations to Safeguard Film & HETV Industry

On April 10, 2025 a UK Department of Culture, Media and Sport Committee published a report on British film and high-end television (HETV) based on the inquiry that it conducted during 2024.

The report sets out numerous findings on the state of the UK film and TV industry and recommendations that the government could take to address key issues and strengthen the industry.

While these recommendations are not binding on the government, they do shine a light on potential future policy directions.

Below, we summarise the key recommendations and what they mean for UK productions.

IFTC a ‘game changer’ but other issues must be addressed

The committee acknowledged that the introduction of the Independent Film Tax Credit (IFTC) has been a game changer for UK production and a welcome sign of ongoing commitment to the sector. However, it emphasised that this was not a ’silver bullet’ and that other industry issues must be addressed.

Further support for film development

The committee concluded that development is crucial to the long-term health and vibrancy of the film sector and underpins the sector’s potential growth.

The committee has therefore recommended that the government amend the current Research and Development Expenditure Credit (RDEC) rules such that development expenditure in the film and TV sectors (and wider creative industries) is eligible for this relief, thereby providing financial assistance to production companies.

New 25% prints and advertising incentive

The committee acknowledged the importance of prints and advertising (P&A) to the potential success of a film and heard evidence from a variety of sources explaining that even if good films are made and financed, getting them seen by audiences – and penetrating the ‘mass marketing campaigns of Hollywood titles’ – remain challenging.

The committee has therefore recommended that the government introduce a 25% relief for P&A spend for films that are eligible for the IFTC in the Autumn 2025 budget.

‘Immediate’ review of EIS and SEIS schemes

Before 2017-18 the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) were a valuable source of finance for production companies, as well as individual films. In 2017-18 the ‘risk to capital’ test was introduced and, despite 2021 guidance revision, the committee noted a significant drop in the use of EIS and SEIS schemes in the film and TV industry.

As such, the committee has recommended an immediate review of the impact of the changes to EIS and SEIS to ensure access to all sources of finance for films. The committee has called for this report to be conducted, and the findings to be reported, within the next six months.

Increase in Global Screen Fund budget to cover loss of Creative Europe funding

The committee acknowledged that the Global Screen Fund (GSF) delivered excellent value for money with a net benefit of £22:£1 on its £7m per year budget. However, it  noted that this has not replaced the full value of funding from Creative Europe that has been lost since the UK left the European Union in 2020.

The committee heard that only 19% of GSF applicants received grants due to the competitiveness of the programme, and that there was strong appetite within the sector to re-associate with Creative Europe.

The committee recommended that the GSF budget be increased to match the British Film Institute’s funding bid to ‘more than double the size of the fund’, and that the government seek to rejoin Creative Europe.

Reform of HETV relief

The committee heard that there is a crisis in the UK HETV market and that it is ‘at a tipping point’ due to a squeezing of budgets and commissioning levels from both Public Service Broadcasters and streamers, as well as rising production costs.

However, the committee was advised that each £1 of incentive provided by the HETV relief gave a £6.44 return, demonstrating the power of the sector to deliver for the economy. Domestic TV production was a key topic for the committee, which concluded that it is under threat and needs intervention to strengthen it and avoid the issues that have hit the UK independent film sector.

The committee did not directly recommend changes to the existing incentive regime; however, it did recommend an analysis on design and return on investment of an uplift in the incentive rate for domestic HETV productions with budgets between £1m and £3m per hour. If found feasible, the committee recommended that the government introduce such a regime.

Voluntary streamer levy of 5%

In order to maintain balance between domestic and inward investment that has driven the vibrant HETV market place, the committee recommended a voluntary 5% levy on streamer subscription revenue to go into a BFI-administered fund to support domestic HETV production.
 
The recommendation was clear that this should be voluntary and industry established; however, if not done within 12 months or if not fully complied with, then the government should introduce it as a statutory levy.

Appropriate funding of BFI certification unit

The committee concluded that the BFI’s responsibilities have often been expanded without a ‘commensurate, long term increase in the grant-in-aid support’, leading to delivery challenges at the BFI, evidenced by increased turnaround times for certificates to be issued.

The committee recommended that any changes to the incentive regime (included the introduction of potential new incentives) be reflected in a commensurate increase in the grant-in-aid settlement provided to the BFI.

Additional recommendations

The report also included a range of other recommendations on AI usage, the use of the incentives as a tool for enforcing best practices in productions, copyright protections and protection for cinema provision.

Demonstrable support for UK creative sector

The Culture Media and Sport Committee’s report shows the UK’s ongoing cross-party commitment to the creative sector; in particular, it demonstrates the commitment to the incentives currently in place, as well as an openness to expand the support currently available to make the UK even more competitive.

However, the recommendations in the report are not binding and it remains to be seen whether concrete changes will be enacted off the back of them. We will continue to monitor activity and provide updates when available.

How Entertainment Partners can help

If you’d like to know more about these changes and how they could impact your productions, don’t hesitate to contact me, Lloyd Gunton, Director of UK Creative Sector Incentives.

With vast experience in media and entertainment accounting, tax and incentives, finance, and accounting, our expert team can also help you to access the UK’s current incentives, providing film and TV incentive estimates, formal opinions to lenders and accountant's reports; managing incentive claim submissions; working with producers to advise on and finalise budgets; and providing deal close support for both independent and multi-party financed projects.

This article is for general information only and does not constitute financial, tax, accounting, legal, or other professional advice. It is not a substitute for advice tailored to your circumstances. We do not accept responsibility for the accuracy of third-party content referenced herein. Please seek professional advice before taking action.