Indie Film Tax Credit Boosts Industry, But Some Projects Might Stall, Says Top UK Agency

The top British organization for film and TV training has reported that the new independent movie tax incentive has resulted in only a slight improvement.

This morning, ScreenSkills released a study, conducted in partnership with Channel 4/4Skills, that evaluated the recent trends and future outlook of the local film and TV sector. The findings indicated a 13% drop in UK film and TV productions over the last three years, with expectations to stabilize in the coming two years.

From 2022 to 2025, there was an 8% decrease in film production. Despite the roll-out of the groundbreaking indie film rebate during this period, ScreenSkills has raised concerns about its overall effectiveness.

“Today’s Sizing up the Future report states that the Independent Film Tax Credit (IFTC) has led to a notable rise in scripted film announcements in the UK,” reads the report. “Yet, whether these projects will actually begin production and boost UK production activity remains uncertain.”

Highlighting a “significant increase” in project announcements, the report questions whether these projects will actually commence production. Notable figures like Christopher Nolan, Ridley Scott, and Barbara Broccoli celebrated the introduction of the 40% tax relief for movies with budgets up to £15M ($20M) in spring 2024 after extensive advocacy. However, data on how many films have taken advantage of this is still sparse, with high-profile projects like the Enid Blyton remake The Magic Faraway Tree and the Prince Naseem biopic Giant, which moved from Malta to the UK, benefiting from the credit.

ScreenSkills pointed out that while film production saw an 8% decline over the past three years in the UK, TV production experienced a much more significant drop of 25%, with major pullbacks from streaming services since 2022 and a 13% decrease in BBC commissions. However, successes such as Channel 4’s 42% increase in its scripted portfolio and an 11% growth in entertainment programming across major terrestrial broadcasters were noted.

Looking ahead, ScreenSkills has outlined several potential scenarios for the industry’s future. The most optimistic scenario anticipates a 12% increase in content volume by 2028, spurred by a favorable BBC charter, increased US investment, and growth in independent film production aided by the IFTC tax credit. The baseline scenario predicts a modest 1.6% increase, while the least favorable scenario forecasts a 5.5% decline due to cost inflation and limited growth prospects.

ScreenSkills, which advocates for industry workers and freelancers, depicted a mixed scenario in the workforce landscape. Currently, there are between 260,000 and 330,000 potential workers in the sector, but slightly more than half are employed—a number that has decreased since 2022. “The declining utilization rate indicates that available talent is either under-employed or working significantly fewer hours than at peak industry times,” the report added.

Earlier this year, an analysis by ScreenSkills on the use of artificial intelligence in the sector revealed that several UK film and TV industry entities were implementing “strict internal controls” around AI technology.

The report also predicts that by 2028, AI could impact up to 80% of production roles, with 15% of these roles at significant risk of being displaced by algorithms.

The report was developed using data modeling provided by Ampere Analysis.