In the response published July 3, the government turned down multiple committee proposals while reaffirming its commitment to maintaining the U.K. as a global production destination. U.K. production spend reached £5.6 billion in 2024, a 31% increase since 2023, with £4.8 billion of this total coming from inward investment and co-productions.
The government’s rejection of the proposed SVoD levy represents a significant policy decision, with the response citing the economic benefits streaming services bring to the domestic industry. The government highlighted major productions like “Barbie,” which contributed £80 million to the U.K. economy, and “Bridgerton,” which generated £275 million over five years while supporting 5,000 local businesses.
“Investment from SVoD services contributes to the success of our domestic sector, from creating jobs to investing in the skills pipeline through training programs,” the government response stated, noting initiatives like Amazon’s Prime Video Pathway and Disney’s contribution to the National Film and Television School expansion.
The response emphasized that producers benefit from striking deals with both streamers, which typically offer higher upfront fees, and public service broadcasters, whose terms of trade allow producers to retain secondary rights.
Beyond the streaming levy, the government declined numerous other committee recommendations. The response rejected calls for a specific review of Enterprise Investment Scheme impacts on the film sector, stating the government does “not plan to undertake a specific review of the impact of changes to the schemes to present to the Committee.”
The government also turned down proposals for 25% tax relief on Prints & Advertising costs for independent films, twice-yearly benchmarking of tax incentives against other countries, and requirements for productions to report regional spending breakdowns. On a targeted uplift to HETV Audio-Visual Expenditure Credit for domestic productions with budgets of £1 million to £3 million per hour, the government gave a non-committal response, stating that “the Chancellor makes decisions on tax policy at fiscal events in the context of the wider public finances.”
While acknowledging the committee’s call for regular benchmarking, the response argued such frequency would be “disproportionate,” noting that attracting filmmakers involves factors “much broader than just our competitive tax incentives.”
The government did highlight recent AVEC enhancements, including 53% relief for independent films and a 5% VFX uplift implemented in April, but maintained that additional complexities could make incentives “less attractive.”
In addressing workforce concerns, the government declined to appoint a Freelancers’ Commissioner as requested, instead offering to appoint a “creative freelance champion” within government. The response cited implementation speed and infrastructure concerns, noting that “a commissioner role requires establishing infrastructure and would take longer to implement.”
The government also rejected calls for a guaranteed basic income or minimum hourly wage for creative freelancers beyond the national minimum wage, and declined to introduce statutory requirements for the entire film and HETV industry to report skills and training spending as a percentage of production budgets.
The response turned down proposals to rejoin Creative Europe as an associate member and declined to provide six-monthly assessments of EU policy developments, stating it would not be “appropriate or ultimately beneficial for the U.K.’s international relations.”
On artificial intelligence regulation, while appointing an AI Sector Champion, the government expressed concerns about creating certification schemes that could “restrict innovation” and declined to mandate AI certification for productions claiming tax incentives. The response noted ongoing review of 11,500 consultation responses on copyright and AI, with a detailed economic impact assessment promised within nine months.
The government also rejected recommendations for VAT relief on cinema tickets and declined to conduct a review of National Lottery funding allocations between distributing bodies, stating it would “not commit to reviewing good cause allocations at this time.”
Further declined proposals included introducing a statutory deposit scheme for moving images, targeted copyright exemptions for archive access, and statutory requirements for industry support of the Creative Industries Independent Standards Authority (CIISA), though the government reserved the right to intervene if voluntary support doesn’t materialize.
The response frankly acknowledged the sector’s turbulent recent years, from COVID-19’s impact to the 2023 U.S. Guild strikes that “shut down much of the production sector overnight.” The government emphasized protecting the local workforce as “the bedrock of future growth.”
The response comes after the government previously announced its £75 million Screen Growth Package as part of the Creative Industries Sector Plan.
Meanwhile, industry training body ScreenSkills welcomed the government’s recognition of its five-year strategy and commitment to supporting the film and TV sector. CEO Laura Mansfield noted that the organization’s HETV Skills Fund income increased from under £2 million in 2017 to a record £9.4 million in 2024-25, while its Film Skills Fund received its highest contribution to date. ScreenSkills supported almost 30,000 people in 2024-25, with 67% based outside London.