UK chancellor Rachel Reeves, who will deliver a landmark budget in less than a month, has been urged by the influential Culture, Media & Sport Committee (CMSC) to introduc a tax relief for the print and advertising costs of indie movies.
In a letter published this morning, CMSC chair Caroline Dinenage said there are “countless films that end up not getting the audiences they deserve” due to these high costs.
The committee’s idea is that any movie that applies to the recently-introduced 40% indie tax relief would be eligible for a 25% tax relief to support the distribution and exhibition of British features.
“Even top-quality films cannot find an audience without distributors and their investment in promoting films,” wrote Dinenage. “Cinemas will not programme films without marketing spend attached, as the risk would be too great. The IFTC [indie film tax relief] will successfully offset the risk of making independent British films, but alone it will not offset the challenges of distribution and exhibition.”
Dinenage highlighted the success of British movies like Oscar-winner Conclave and StudioCanal’s recent I Swear but said while they play “to packed audiences nationwide, there are countless films that end up not getting the audiences they deserve.”
Dinenage’s letter came complete with some positive mathematics. She quoted the Film Distributors Association, which commissioned modelling of the potential impact of the proposal and found a return of more than £7 ($9.20) for every £1 spent on the relief, including a net positive return to Reeves’ Treasury department. The cost of the intervention would equate to just 2% of the total amount of film tax relief claimed on production costs, according to Dinenage.
The gamechanging 40% indie tax relief was introduced by the previous Conservative government and has had a huge impact on the indie movie sector. The current Labour government also rubberstamped additional VFX relief but has been relatively cold on introducing any more tax reliefs for the sector. TV industry bods have been calling for improvements to the high-end TV tax relief amid spiraling drama costs but ex-Culture Minister Chris Bryant recently told us this is unlikely.
Reeves’ budget will take place on November 26 and is being seen as a huge moment 18 months in to this Labour government, which has been slipping further and further in the polls.
