The UK’s standing as a world-class destination for film and television production is under serious threat, according to two new reports from the British Parliament’s Culture, Media & Sport Committee (CMSC). With long-standing funding gaps at the British Film Institute (BFI), increasing delays in tax credit certifications, and the near collapse of the UK’s independent production pipeline, the country’s role as a top-tier production hub is showing signs of structural strain.

The CMSC is now calling for an emergency package of reforms, including enhanced tax incentives, a 5% streamer levy, a tax credit for indie film distribution, and the creation of a Freelancers’ Commissioner—all aimed at stabilizing an industry in flux.

BFI Capacity Strained by Expanding Mandate

At the center of the crisis is the BFI, which has been operating under increasing pressure since it absorbed the responsibilities of the former UK Film Council in 2011. Its remit now spans feature films, high-end TV, video games, animation, and XR—but its government grant-in-aid has not increased to match the workload.

The result: delays that are starting to turn producers away. The BFI’s Certification Unit, which is responsible for verifying eligibility for the UK’s six major screen sector tax credits, has seen turnaround times rise from 4–6 weeks to as long as 20 weeks. For producers with tight timelines or international alternatives, that kind of delay can kill a project—or move it offshore.

Northern Ireland Screen, one of several contributors to the report, noted that the delays are “beginning to undermine the UK’s reputation for stability and security”—a key competitive edge in a global production environment where time equals money.

Inward Investment Up, But Domestic Production Falling Behind

While international studios continue to invest in UK-based tentpole productions, domestic film and TV producers are facing steep declines in financing. The report cites a troubling imbalance: foreign-backed “box office blockbusters” are filling stages, but homegrown drama is struggling to survive—especially mid-budget series in the $3–4 million per season range.

“If the government fails to intervene,” the committee warns, “the challenges facing independent film will spread to the domestic HETV sector.” The rise of big-budget global streaming content has driven up costs, while UK public service broadcasters are cutting back due to falling license fees and advertising revenues.

Recommended Reforms to Stabilize the Sector

The CMSC’s recommendations are sweeping—and urgent:

•Enhanced tax reliefs for domestic high-end television, to bring more parity with incentives tied to international inward investment.

•A new distribution tax credit to help smaller-budget British films get in front of audiences—without which producers will continue to struggle with financing and visibility.

•A mandatory 5% streamer levy, tied to UK-based SVoD revenue, to fund a cultural content pool focused on authentically British stories.

•A Freelancers’ Commissioner, empowered to address precarity in pay, hours, and workplace behavior for the sector’s predominantly freelance workforce.

•Development of an AI observatory and innovation hub, ensuring UK creatives remain globally competitive in the face of rapid technological change.

Industry Reacts: Welcome Steps, But More Needed

Industry leaders largely welcomed the report. Wolf Hall director Peter Kosminsky praised the 5% streamer levy recommendation as “the right solution,” while Directors UK and Bectu highlighted its strong advocacy for freelance protections and independent cinema.

Patrick Holland, Executive Chairman of Banijay UK, struck a more cautious note. He argued that expanding tax credits—especially for mid-range UK drama like Peaky Blinders or SAS: Rogue Heroes—may provide more practical support than a levy. “These types of shows, often in the $3–4.5 million range, are at real risk if we can’t guarantee funding,” Holland said. “Tax credits help de-risk the projects and unlock distributor capital.”

Soundstage Occupancy Could Suffer Without Action

For the UK’s extensive soundstage infrastructure, the implications are clear: volume is king. A continued decline in British-originated production could lead to uneven stage utilization, especially outside of core hubs like London and Manchester. Producers who can’t wait five months for tax credit approval may increasingly turn to alternative markets offering faster approvals, simpler incentives, and rising infrastructure—such as Ontario, Georgia, or France.

The UK has seen inward investment in its stages boom in recent years, but without sustained domestic content to fill gaps between blockbuster productions, studio operations, vendors, and production service providers will feel the squeeze.