Contribution
My Lords, as I hope your Lordships have understood from the Secretary of State’s Statement—I think there is consensus across the House— our film industry really is one of the UK’s true economic powerhouses. We are genuinely one of the best places in the world to make films, with our incredible talent and world-class studios and locations.
When I was repeating the Statement, I noted that “Paddington” got quite significant coverage in the debate yesterday, so before I answer the points raised by noble Lords, I just wanted to mention that my own personal favourites are “Suffragette” and “Brassed Off”. These and many other films are not only compelling entertainment but depict important cultural and social moments in our nation’s history. This Government want to make sure that our film sector goes from strength to strength and that we can attract more investment and make more exciting, diverse and original films than ever before.
We cannot be complacent, however, and we recognise the challenges facing the sector. That is why we laid the regulations yesterday, which will provide much-needed support to our independent film sector, providing an uplift to our existing audiovisual expenditure credit specifically targeted to support the growth and success of low-budget films.
Films can be a fantastic driver of regional growth, helping to spread opportunity across the country, but we know that access to and participation in this sector has in some ways become the preserve of the privileged few and we want to change that. We are committed to working with regional partners to create more growth, boost opportunities for all and support people to fulfil their creative potential.
Labour introduced the first film tax credit back in 2007. Since then, our industry has gone from strength to strength. I do not think we should make this a political knockabout around who supports the film industry more. The noble Lord, Lord Parkinson, asked for an acknowledgement that this was a policy of the previous Government and I refer him back to the Secretary of State’s Statement, which makes it clear that this is a continuation of that policy. It was a shame that he resorted to political jibes, when this should be something around which we have political consensus. Although the measure announced yesterday was announced by the previous Administration, it is this Government who have designed and laid the necessary regulations to ensure that companies, many of which are eagerly anticipating its introduction and welcomed it yesterday, are able to apply for independent film tax credit from the end of the month. This is the first DCMS SI of this Government and, as such, I believe it shows the priority that we on these Benches place on supporting the industry.
British indie films such as “Pride”, “Billy Elliot” and “Trainspotting” tell award-winning stories about our country, celebrating parts of our culture that often get less exposure. This relief will allow more stories like these to be told, enabling more people to see their lives and experiences reflected on the screen. Yesterday, the film sector reacted incredibly positively to this announcement, and we have already seen Pinewood, in response, announcing a new indie production hub. This relief is open to co-productions, which means it will also boost UK-international collaboration on film. The DCMS-funded UK Global Screen Fund helps British filmmakers co-produce films with international partners and distribute their films globally.
The noble Lord, Lord Clement-Jones, highlighted the issue of skills. The announcement yesterday is just the start of how this Government will be supporting our world-leading creative industries. We are reviewing the school curriculum, to put creative education back at its heart, which will boost the talent pipeline for our fantastic film sector, as well as looking at the apprenticeship levy he referred to. On his other points about support for television, we recognise that the last 18 months have been quite difficult for the TV production sector and we are committed to supporting it. The Government maintain a range of interventions to support independent TV production companies, including a system of quotas and the terms of trade regime. We are taking steps, through the Media Act, to retain, and as appropriate modernise, these to ensure that they remain fit for purpose. It is also worth noting that there are several existing tax reliefs that independent TV production companies can benefit from, covering animation, children’s TV and high-end TV.
In relation to specific measures and tax credits to support creative industries, I am afraid that I am not going to be able to give definitive answers today. As noble Lords will be aware, the Budget and the spending review are coming later this month: watch this space.
Briefly, the Government believe in human-centred creativity and the potential of AI to open up creative frontiers. Some 35.2% of creative industry businesses are currently using AI technology. We recognise its significance, but are committed to finding the right balance between fostering innovation and ensuring protection for creators. That requires thoughtful engagement with the creative industries and companies driving AI development.
Noble Lords will be aware that this Government have already launched Skills England to bring the skills we need for a decade of national renewal for our communities, businesses and country. Next week, the Government will host the International Investment Summit; we have big ambitions to ensure that the UK is back at the global table. Our creative industries, which reflect the best of this country, will be so important to that.