Earlier today, the long-running Culture, Media and Sport Select Committee (CMS) Inquiry into British Film and High-end Television published its final report, with recommendations to Government for next steps to both protect and grow the British screen industries.
Initially launched in summer 2023, the CMS Inquiry underwent a brief hiatus due to 2024’s General Election, reconvening with a newly formed Select Committee toward the end of October 2024. The Committee’s final report is based on information gathered from almost 150 written submissions, multiple oral evidence sessions, and key visits to relevant facilities, forums and operations. A total of 35 different recommendations feature in the report, and full details of the Inquiry findings can be found HERE
Amongst the report’s notable recommendations for the British film industry were – to increase the budget for the UK Global Screen Fund; rejoining Creative Europe as an associate member whilst engaging with the EU’s discussions on ‘European works’; and a review of the impact of a permanent cut to VAT on entry to cultural events, including cinema tickets (as advocated by the UKCA), to identify if it would support the growth of the creative industries.
Of particular significance was the inclusion of the FDA’s proposal for a distribution P&A tax relief. The recommendation states that ‘in the Autumn 2025 Budget, the Government should introduce a 25% tax relief on Print & Advertising (P&A) costs for films claiming the Independent Film Tax Credit, to support the distribution and exhibition of British films.’ This low cost/high return intervention would help increase awareness and audience engagement for those films able to successfully benefit from the IFTC (Independent Film Tax Credit).
The CMS Inquiry Report arrives at a time when the UK’s screen industries are achieving ongoing post-pandemic recovery whilst navigating the fall-out from recent industrial disputes in Hollywood. Both of these seismic events highlighted the urgent need to bolster local productions and nurture home-grown talent, and the recommended P&A tax relief would boost all parts of the film ecology – production, distribution and exhibition – as well as significantly benefitting cinemagoing audiences nationwide.
With broad cross-sector support, we now look forward to working with DCMS Ministers and officials to act swiftly in progressing the Committee’s distribution recommendation.