UK's world-class film sector handed major jobs and growth boost by tax reliefs

09 October 2024 - Press release

 

• Independent film productions costing up to £15 million to benefit from an increased tax relief of 53%

• Move will empower UK filmmakers to create more independent films and co-produce with other countries 

• Film and the creative industries to form key part of government’s mission to grow the economy in all parts of the UK

 

The next generation of indie films have been handed a major boost by the government with the introduction of a tax relief uplift, which will create jobs and drive growth by making more British hits like Aftersun and Billy Elliot possible.

The Independent Film Tax Credit (IFTC), confirmed today by the Chancellor and Culture Secretary as the London Film Festival gets underway, will mean that for the first time productions with a budget up to £15 million will be eligible for a relief of 53% on qualifying expenditure. Films with a budget up to £23.5 million are also eligible for the IFTC and the relief will be tapered.

The creative industries are a key part of the economy, generating £125 billion a year, and form a central part of the Government’s mission to grow the economy. The UK film sector is already worth £1.36 billion and employs more than 195,000 people, with the potential to grow further thanks to these reliefs.

British indie films like Rye Lane, Rocks, Bait and Pride tell award-winning stories about our country, celebrating parts of our culture that often get less exposure. This relief will allow more stories like these to be told, enabling more people to see their lives and experiences reflected on screen.

To support the Government’s commitment on more distinctly home-grown content and talent, for films to meet the criteria for this new relief, they must have a UK writer or director, or be certified as an official UK co-production.

The announcement comes ahead of the government’s International Investment Summit next Monday which will gather UK leaders, high-profile investors and businesses from across the world to discuss how we can deepen our partnership to drive investment and growth, including in the creative industries.

The new measures are the latest in a series of interventions from the government to drive growth, which is creating the conditions for confident investment and trusted partnership with business. From major investment in carbon capture to securing billions in investment from Blackstone and Amazon Web Services, this government is committed to working hand in hand with business to drive growth and investment across many sectors.

 

Culture Secretary Lisa Nandy said:
"The UK’s first-class independent filmmakers have a track record of creating cult classics and surprise hits that are enjoyed by millions. Their films showcase British culture and creativity to the world while also supporting thousands of jobs and driving economic growth in all parts of the UK.
“These reliefs will pay dividends both culturally and economically, inspire the next generation of talent across the country, deliver more great British content, and sustain a world-leading industry here in the UK.”

Chancellor of the Exchequer, Rachel Reeves, said:
"The creative industries are a crucial part of our economy, and this change will help strengthen them further.
“By supporting growth in this vibrant sector, we can create jobs and continue to show Britain at its best around the world.”

Faye Ward, producer, Rocks, Suffragette, Stan & Ollie, Wild Rose, said:
“We have a tremendous history of filmmaking and talent in Britain. The indie sector is the main pathway for new and original voices and talent to enter into the industry. It’s imperative that we continue telling and making UK stories for which this enhanced tax relief is vital for our industry.”

Amy Jackson, producer of Oscar-nominated Aftersun, The Outfit and The End We Start From, said:
"This is a vital intervention for the UK industry, which I wholeheartedly welcome. Making British indie films is tough, but this enhanced tax relief means that as a producer I now have crucial support to explicitly focus on bringing incredible stories by British talent to the big screen while building out exciting co-production opportunities. The IFTC will make UK indie film a more attractive investment prospect for international partners and co-producers facilitating more creative collaboration and bringing much needed backing to the independent sector across the board."

BFI Chair Jay Hunt said:
“The speed with which the Government has turned this around shows how vital this intervention is for independent film. It will have a game changing impact across the whole UK screen sector - creatively and economically.”

Ben Roberts, BFI Chief Executive, said: 
“This is great news for UK film and is already having a positive impact across our industry. More films can now be made in the UK that audiences at home and internationally will get to enjoy. Independent filmmaking is vital to our cultural expression and creativity, it builds careers for talent in front of and behind the camera, and also showcases UK creative excellence on a world stage. We’re grateful to Government, the DCMS and the industry for working together to establish this transformative tax relief uplift where it is most needed.”

Andrew M Smith, Corporate Affairs Director, Pinewood Group, said:
“Pinewood is synonymous with great filmmakers of the past and present and independent film has been at our heart since the Studios opened in 1936. This tax relief is fantastic news for the industry as a whole and will bring an injection of support to further nurture the groundbreaking talent of the future and bring a greater diversity and range of stories to our screens.”

Elizabeth Karlsen, producer, Living, Carol, Colette and The Crying Game, said:
“Based on three decades working in independent film in the UK I can say with absolute confidence that this new support for British independent film will be felt far and wide; it will help us nurture new talent, support established talent, and ensure our global reputation for producing outstanding cinema. The creative and economic benefits will be felt through the industry and beyond.” 

Hakan Kousetta, executive producer, Slow Horses, Hijack and The Essex Serpent, said:  
“Delighted to welcome this vital support for the British independent sector. A thriving independent film sector is a key part of the industry's ecology. It’s where myself and many others started our careers and is essential if we are to continue to produce some of the world’s best screen talent both behind and in front of the camera.”  

 

While the last few years have been challenging, in part because of the end of the pandemic streaming boom and US writers’ strikes halting productions, in recent decades the UK’s film industry has enjoyed strong growth. Tax incentives for film, first introduced in 2007, helped to bring the production of blockbusters to Britain, but the government is ambitious that it can grow further.

While major film production has flourished, smaller independent films have not received sufficient support. The tax credits uplift announced today will help the independent film sector reach its full potential, creating jobs and contributing to driving economic growth across the country.