The United Kingdom government has made a decisive move by rejecting calls for a 5% levy on streaming platforms and mandatory IP retention rules. In their formal response to parliamentary recommendations on British film and high-end television, the government emphasized the importance of maintaining a “mixed ecology” that welcomes both international investment and local production.
According to a report by Variety back in May, U.K. Culture Secretary Lisa Nandy dismissed proposals for a levy on streaming platforms, despite a parliamentary committee suggesting that such a measure could benefit the country’s television drama sector.
In the response published on July 3, the government declined several committee proposals while reiterating its commitment to keeping the U.K. as a global production hub. In 2024, U.K. production spending reached Ā£5.6 billion ($7.9 billion), a 31% increase from the previous year, with Ā£4.8 billion ($6.5 billion) of this total coming from inward investment and co-productions.
The government’s decision to reject the proposed SVoD levy is significant, as it highlights the economic contributions that streaming services bring to the domestic industry. Major productions like “Barbie” and “Bridgerton” were cited as examples of how streaming services have positively impacted the U.K. economy.
The government emphasized the importance of striking deals with both streaming platforms and public service broadcasters, noting that producers benefit from the different terms offered by each.
In addition to rejecting the streaming levy, the government also turned down various other committee recommendations, including tax relief on Prints & Advertising costs for independent films and requirements for productions to report regional spending breakdowns.
While addressing workforce concerns, the government declined to appoint a Freelancers’ Commissioner but offered to appoint a “creative freelance champion” within the government instead.
The response highlighted the challenges faced by the industry in recent years, from the impact of COVID-19 to the U.S. Guild strikes in 2023. The government stressed the importance of protecting the local workforce as the foundation for future growth.
This response follows the government’s announcement of a Ā£75 million ($102 million) Screen Growth Package as part of the Creative Industries Sector Plan. The government’s stance reflects its commitment to maintaining a balance between international investment and local production in the U.K. film and television industry.
