British Film and High-end Television

Culture, Media and Sport Committee

We now come to the Select Committee statement on behalf of the Culture, Media and Sport Committee. Dame Caroline Dinenage will speak for up to 10 minutes, during which time no interventions may be taken. At the conclusion of her statement, I shall call Members to ask questions on the subject of the statement. These should be brief questions, not full speeches. I emphasise that questions should be directed to the Select Committee Chair, not the relevant Government Minister. However, Front Benchers may take part in questioning.

13:59:00

I am grateful to the Backbench Business Committee for making time for this statement. In April, the Culture, Media and Sport Committee, which I am very honoured to chair, published its report on British film and high-end television, and this sector is absolutely thriving. We have world-class facilities at Pinewood and Leavesden, where the inward investment means films that could be made anywhere are being made here in the UK. The development of Crown Works Studios in Sunderland ensures not just that film making is happening in London and the south-east, but that the money is spreading out to our regions, where we have enormous talents. On our screens, there are fantastic shows such as “Adolescence”, “Doctor Who” and “Rivals”—something for everybody—sharing British stories around the world. In cinemas, British talent and locations in movies such as “The Salt Path” and “The Ballad of Wallis Island”, which I am told is fantastic, are making such an impact. However, this is a fragile industry. It has done so much to rebound from the difficulties of the covid pandemic, but the US strikes in 2023 showed us just how reliant the UK industry is on inward investment and how vulnerable it is. We cannot take this success for granted. It was hard-earned and it must be protected. Our inquiry was launched in the summer of 2023. It came 20 years after the last major Committee inquiry report on the state of British film, which with the willingness of successive Governments and huge engagement from the sector, has shaped policies for the last two decades. However, it was in need of an update, so our Select Committee heard from film makers, cinemas, industry bodies and those working on skills in the sector. The previous Government acknowledged some of the issues we had begun to raise about low-budget British film and VFX—visual effects—tax credits, but last year’s general election left the inquiry on a cliffhanger, with many in the industry desperate for a sequel. We did not want to leave audiences disappointed, so with a new look Committee of excellent new members, we have brought back the inquiry on the crisis in British high-end TV, the benefits and challenges of artificial intelligence, and the work of the British Film Institute and the Government. Our report made 35 recommendations to the Government and the BFI. I will not test your patience, Madam Deputy Speaker, by going through them all, but based on evidence from across the industry, we proposed a comprehensive plan to support inward investment, champion British content and independent film making, drive up skills, support people to stay in the sector, help our cinemas and protect our incredible screen heritage. Admittedly, some of these recommendations were really bold. We supported the calls of eminent creators such as the fantastic producer and director Peter Kosminsky for a levy on streamer subscriptions to help fund British content. Other recommendations were comparatively small but important, such as inviting the Government to review the effectiveness of their incentives for the sector, or working with the BFI for a screen heritage strategy. In the meantime, the Government have published their creative industries sector plan, which happily made film and TV a priority as one of their first frontier sectors. They have given a welcome uplift to the UK global screen fund, which our Committee recommended. They have also announced a new capital fund for the National Film and Television School, which will contribute some, if not all, of the skills we need. Madam Deputy Speaker, if like me you have been to the cinema recently, you will have seen the trailers for the summer blockbusters coming up, and been a bit frustrated that the best bits have all been shown in the trailers, and that is where we are with the Government response. The areas where the Government agreed with the Committee and have taken decisive action were the only new announcements in the sector plan. On everything else, the Creative Industries Minister, who cannot be here for this statement, is at risk of being the villain. He might be called the Government’s very own Dr No. In the time I have left, I will go through where we think the Government have got it wrong. They simply do not share our ambition for this sector, and have not acknowledged the real anxieties those in sector have expressed and the support they have asked for. The Government agree with our Committee that we must ensure the resilience of domestic production and protect our domestic workforce, but they do not seem to have the answers on how to do so. They have failed to recognise the value of research and development in the creative arts, and that it should be treated in the same way as R&D for science and technology. They have ignored the concerns raised by film makers about access to the enterprise investment scheme and the seed enterprise investment scheme. They have ignored our proposals for a print and advertising tax relief, which would drive investment in our cinemas and independent films. They have refused to require a regional breakdown of production spending, which would help the Government ensure that the benefits of these tax credits are shared right across the UK, and we have phenomenal skills and great stories to tell around the UK. The Government’s welcome extra funding for the UK global screen fund is tempered by a refusal to engage with industry calls to rejoin Creative Europe. On skills, they have ruled out statutory reporting on spending in the sector, despite the unwillingness of some big players in the industry to be open and transparent about what they are giving back. There is hope that the growth and skills levy will be more suitable for the creative industries—the apprenticeship levy currently is not working—but there is very little new information, and I know the sector is concerned that the Treasury may weaken the proposals for a levy that works for the sector. The Government’s proposal for a freelance champion is good as far as it goes, but it is very light on detail and a long way from the freelancers’ commissioner that we have repeatedly asked for. Although the debate on AI and copyright has moved on somewhat from our ping-pong on the Data (Use and Access) Bill, the Government have rejected or ignored a raft of proposals that would have protected the intellectual property and the moral rights of our creative artists. I know Ministers care deeply about our creative industries, and the Government have made a commitment to them with the sector plan, but I am concerned that while they call British film and TV a frontier sector, so many of our recommendations, based on really clear and compelling evidence from the sector, have just been dismissed or ignored. There is a question whether the Department for Culture, Media and Sport thinks our recommendations are wrong, or it just does not have the clout with the Treasury to make them happen. I know the Minister cannot be here, but I also know how he loves a cultural pun, so in the hope that he will be watching this back, it would be a shame not to take this opportunity to say that we had great expectations for the Government’s response but, rather than offering us the full monty, we were left brassed off. The Minister will be before our Committee next week for a brief encounter to discuss the creative industries sector plan. We are not rivals; we want to work with the Government in the line of duty to get the most for this sector. There is some time for them to add a little sense and sensibility, or perhaps some atonement. If so, rather than being wicked, the Minister could end up as British film’s local hero. I commend this statement to the House.

I thank the hon. Lady for her statement and her Committee for its work on this important area. I also thank her for mentioning the Crown Works Studios site, which is in my constituency, so she will understand why I am such a proud champion of our regional film and screen industries. The Select Committee’s inquiry recommended some regional elements to tax incentives, and—understandably, I think—the Government response says that those will be considered at fiscal events. Does she agree that there is a very strong case for a specific regional element of tax incentives for the film and screen industry, given its current concentration in the south-east despite the potential for growth in areas such as Sunderland and the north-east?

The hon. Gentleman makes such an important point. We have remarkable skills around the UK, but when we go into sixth forms in any of our constituencies and speak to the young people there, we find few who are considering a career in film and TV. Yet if we look at the things they are studying, we see that the film and TV industry has a demand for all of them. Carpenters, hairdressers, accountants, technicians, engineers and computer designers would all have a place —a job—in the industry, yet the young people may not think of it. We need to ensure that the opportunities for British film and high-end TV are understood and nurtured in every corner of our country, because we have the ideas, the skills and the phenomenal track record, and the Government must do everything they can to harness those and make sure we are benefiting from them.

I congratulate my hon. Friend on her report and her wonderful statement, as well as on all the work that has gone into the report behind the scenes. Public service broadcasters are struggling to compete with the massive budgets set by streamers, so what more can be done to ensure we see high-quality British drama and comedy on terrestrial television?

My hon. Friend hits the nail on the head. This is one of the big questions underlining our whole inquiry. The cost of making content has risen so much, it is pricing so many of our British PSBs out of the market. We heard from Peter Kosminsky, the director of “Wolf Hall”, that it simply could not be made today and that “The Mirror and the Light” was only made because some of the key people on it worked for free. We cannot carry on like that. We need our British stories to be heard around the world. We have seen some fantastic streamers making great content, such as “Black Doves” and “One Day” which do tell British stories, but our PSBs do them better than ever and we need to ensure they are getting the right funding. We have made some quite radical recommendations, such as expanding access to tax credits and a levy on streamers, which was particularly contentious. We will continue to push for some of those recommendations. The Minister is appearing in front of us next week and we will keep asking him these questions, because we need to protect our PSBs and ensure they are telling our great British stories for years to come.

Earlier this year, “Tinsel Town” was filmed in Knaresborough. The benefit of seeing the film industry come to my constituency was clearly apparent from the get go. It has given a real buzz and excitement to the local community. I would like to see more on the regional investment side. Channel 4 is headquartered in Leeds just down the road from Harrogate. Will the hon. Lady elaborate on how we would be best set to monitor and regulate to see the benefit of TV and film studios in our regions?

One thing we were asking for was for streamers in particular to be feeding back on how much of their money they are spending on skills and the regional impact of the investment they are making. We know that it can make such a difference to a local area, as the hon. Gentleman says. When something is filmed in one of his towns or cities, it shines a fantastic light and puts that place in focus. It also tells stories that resonate completely with our residents and inspire an entire new generation to work on those stories but also to create them in future.

I congratulate my hon. Friend on her statement and on the report she has produced. To succeed, great British films also need a good audience. Will my hon. Friend tell us what she thinks of the Government’s support for local and regional cinemas?

That is a really important question. The Committee made a recommendation based on the conversation we had, supported by the Film Distributors’ Association, for a tax relief for print and advertising of films. The Government have not responded to that, but it is really important. If we are to support British films to be made, and the Government have brought forward tax credits for independent British films with a lower budget, we still need audiences to know that they are out there for them to be supported to get into our local cinemas. Local cinemas have suffered as well, particularly during the pandemic. We need them to be able to stay open. They are vital parts of our local community. This whole ecosystem depends on having cinemas that are flourishing and functioning, and British stories being told in our cinemas. Helping the print and advertising aspect of that story really is very important. We were very disappointed that the Government did not accept that recommendation.

I congratulate my hon. Friend on the ingenuity of her statement. I am tempted to ask her if she is offering a prize to the first person to identify all the film titles she smuggled into it. Could she perhaps enlarge a bit on one of the more disappointing responses, as negative as it was, from the Government to which she referred? That is the recommendation that the Government should at least conduct research into the possibility of a statutory deposit scheme for the moving image, which I assume is a bit like having a copyright library for films in which every film gets deposited. Although I appreciate the limits on capacity of the BFI, would researching such a possible scheme not be a positive move to the advantage of posterity?

My right hon. Friend represents the New Forest, which, with its great beauty, is a remarkable setting for so many of our British film and TV shows. He is absolutely right that the BFI does a remarkable job. The Select Committee visited its archives to see the collection of British film and TV content going back decades, right from the advent of film production, and to see the remarkable skills it has in being able to bring some of that really old film content back into use. This is part of our heritage. We need to do everything we can to ensure we are protecting it and investing in it, and ensuring that people have the skills to look after our film history in future, so we were really disappointed with that particular aspect of the Government’s response to our recommendations.

I thank the hon. Lady and the Select Committee very much. We are quite excited about what we are doing in Northern Ireland, where the Assembly is promoting the film and TV sectors. They are all doing well, with jobs created and the economy boosted. On working together—we are not in competition with each other; we are trying to work in partnership—has she had the opportunity to speak to the relevant Minister, and perhaps the sector, in Northern Ireland to ascertain what they are doing, because I always believe that the United Kingdom of Great Britain and Northern Ireland always works better together and that we can do the same in this sector?

The hon. Gentleman is absolutely right. The Northern Ireland film and TV sectors have been hugely successful, notably for “Game of Thrones” and I think that “Line of Duty” was shot there, too. It has had phenomenal success, again based on remarkable skills. I have not had the opportunity to speak to the Northern Ireland Government, but I really would like to because, as he says, there is plenty of work for everyone. We have British stories that are there to be told in every single corner of the British Isles. We need to make sure we are promoting our British film and TV industries, so we can keep telling those stories.

I thank the Chair of the Select Committee for her statement. I think she failed to get “Bend it Like Beckham” into her list and my constituent Nick Manzi will be very disappointed in her for that.