US Tariff on UK Films

Question

12:36:00

Asked by

To ask His Majesty’s Government what assessment they have made of the potential impact of a USA tariff levied at 100 per cent on UK films, and what discussions they are planning with the industry.

My Lords, we are in active discussions with the top of the US Administration and we are clear that the deep ties between the US and UK film industries provide mutual benefits to both countries. This is a fluid situation, and we will continue to take a calm and steady approach. We are engaging closely with industry, and we are absolutely committed to ensuring that our film and TV sector can continue to thrive.

My Lords, I congratulate the Government on their calm approach, but the UK film and TV industry employs more than 200,000 people directly and indirectly in productions and is worth £4.8 billion in investment. Given that 87% of last year’s investment into the UK’s 191 films was external, can the Minister reassure the House that the sector and the Government are developing a plan to protect current investment levels from tariffs?

My Lords, the film sector is, as my noble friend says, a key part of the UK’s world-class creative industries and, as such, we are committed to ensuring that it continues to grow and create good jobs across the UK. Inward investment is vital, and we will work with international partners to continue to build on current successes. Supporting our domestic sector is equally important, and we will, as my noble friend asks, soon publish our creative industries sector plan to set up further support for the film industry and the wider creative industries, including increased support from the British Business Bank to access finance.

My Lords, I congratulate the Government on their calm approach, but will the Minister take this opportunity to acknowledge that none of this—the defence of the film industry and other industries—would be possible were it not for the fact that we had left the European Union?

I am not sure where to start with that one, to be quite honest. I think we have heard all the way through the difficulties that the Brexit agreement has left our creative industries with. I cannot subscribe to the opinion that the noble Lord has put forward. These are indeed interesting times. When I woke up this morning and heard the news about an announcement later today—sometimes you feel like putting your head back under the duvet. But there you go. The noble Lord is entitled to his opinion, but it is not one that we share.

My Lords, while the T-word across the pond is “tariffs”, here our film industry has been thriving thanks to tax credits. They have been a game-changer—the kind of investment that President Trump wants to repatriate. Whatever his plans—and I think the Minister mentioned this—should we not be looking to make our industry more resilient? Will the Government act to tackle the film skills issue with strategic thinking? If the answer is, “with the forthcoming creative industries industrial strategy”, when will we see the results? I hope that they will be of a cross-departmental nature.

The noble Baroness touches on an issue very close to my heart. I find it absolutely fascinating that, as a high-profile industry, the film industry is not more attractive to young people coming through the system. There has to be much greater awareness of what is involved. We also want to make sure that careers in screen are accessible to everyone. Of course, we have the Creative Industries Independent Standards Authority working with us, and our “make work pay” initiatives. There is much going into this, but I completely recognise the further work that needs to be done linking to curriculum changes, attracting young people in, but protecting those who are already in the industry.

My Lords, at the risk of driving the Minister back under her pillow, I would like to ask about the digital sales tax, which has been part of the US trade negotiations. Can the Minister tell the House whether the tax, which President Trump has called “overseas extortion”, will be abolished for US tech companies as part of the trade agreement that we are expecting this afternoon?

I am sorry to disappoint the noble Viscount, but we have to wait until the announcement is made and then we can look at the detail and discuss it further.

My Lords, my noble friend the Minister will be aware that the first film office was established in Liverpool in the mid-1990s with European funding. The recent BBC drama “This City Is Ours” provided a £9 million boost to the local Merseyside city region economy, the most recent of very many over 30 years. Screen Alliance North has launched an industry-wide group to improve sustainability in productions right across the north. Film and production apprenticeships have created pathways—I am coming to my question—to high-GDP sustainable jobs in a growth industry to hundreds of local people from traditionally deprived communities. Can my noble friend reassure me that the Government will take proactive steps to retain and indeed grow this vital economic, social and cultural driver for working people across the north? It is a vital component in the development of our region—

Oh!

My noble friend raises an issue that I am very passionate about. I can list similar initiatives across Yorkshire, which has become a real centre for film, as most noble Lords will know. I reassure her about the measures we are bringing in around tax relief uplift, independent film tax relief and—something that will be close to her heart—the whole issue of looking at how we can help through a review of business rates. We have confirmed a 40% relief for film studios until 2034 and plan to permanently lower rates for eligible cinemas and other retail, hospitality and leisure properties. It is so important that the regions are kept at the forefront of this agenda. Some mayors have put this as one of the central planks in their future planning. It is critical that we keep our eye on the whole of the country and improve opportunities.

My Lords, His Majesty’s Government have had a very good week on trade. We have just signed a deal with India, the fourth biggest economy in the world—about to become the third biggest—and we hope to have an announcement today that we will have a deal with the largest economy and our largest trading partner, the United States. The great benefits will accrue like compound interest, but can the Minister confirm that the full measure of these benefits will be felt by our fellow subjects in Northern Ireland, not only in the film industry, which is important there, but across the board?

The point that I made in answer to the previous question was in relation to the regions of England, but of course the devolved authorities must come into this picture. In moving forward with the trade deals that we have, we must not forget the significance of the EU market, particularly in this area of the creative industries. It is fundamental that we keep that at the front of our minds and protect those people who most need it.

My Lords, the creative industries face threats on a number of fronts, including trade tariffs on touring, as we heard earlier, and the widespread theft of their copyright. I am grateful to the Government for their efforts to avoid tariffs for the film industry—of which I was once a part—and to restore touring rights. However, can the Minister say why the Government have not shown similar support on the industry’s need to protect its property rights from overseas AI companies? I ask her to discuss this with her colleagues before the data legislation comes to this House on Monday, when I will try to insist that the Government look at it one more time.

I thank the noble Baroness for her question. Yes, obviously, we need to keep this under review. It is heartbreaking for artists to lose their copyright in this way. It is an important issue, and one that we are still learning about.

My Lords, that concludes Oral Questions for today. This may be a convenient moment for noble Lords who wish to do so to leave the Chamber—not while I am on my feet, if I may remind the House. This is not the occasion for leisurely conversations on the way out or in. Perhaps the House would be kind enough to allow the deputy and I to change places before the stampede begins.