19/09/2003

A group of MPs have urged the UK government to maintain attractive tax incentives and to encourage UK broadcasters to increase their investment in the local film industry. The proposals have been outlined in a 90-page report called ‘Is There a British Film Industry?’, which was published yesterday.

According to the key recommendations identified by the all-party House of Commons Culture, Media and Sport committee, the current Section 48 tax relief should be continued but also ‘evolve’ by applying to national and international distribution as well as production.
In reviewing the tax regime for film production (supposed to end in its current form by 2005), the Government should also “assess whether there is a case for the introduction of a new terminology to assist the classification of films according to country of origin distinguishing cultural content and financial provenance”, says the report.
The recommendations state that the second key priority for the Government is to consider the role of public service broadcasters in relation to investment in British films, using perhaps the Statements of Programme Policy required from the broadcasters and the newly reconstituted Ofcom (the media regulating body) to improve relationships between the UK TV channels and the local film industry.
Finally, the report praised the actions of the UK Film Council in “providing assistance and strategic leadership to the industry” and it was stressed that this work should be supported by the Government “so that impetus is not lost”.
However, the Film Council was also advised to “balance carefully the need to make progress in each area with the risk of spreading its limited funding too thinly”, and to engage actively with the British Film Institute (the BFI) to clarify the most effective working relationship for meeting their objectives, both shared and complementary”.