The UK government has definitively rejected a proposed 5% levy on the subscriber revenues of streaming services operating within the country. This decision comes after the Culture, Media and Sport Committee advocated for the levy in April, suggesting the funds be channeled into a cultural fund managed by the British Film Institute (BFI).
In its official response, the Government clarified its position, stating that it recognizes the substantial contributions streaming services make to the domestic television industry and the broader economy. “In line with our objective to support a mixed ecology, we will however continue to engage with major SVoD services, with the independent production sector and with PSBs on how best to ensure mutually beneficial conditions for all parties,” the government's response, released recently, stated.
The committee's report had stressed the urgent need for measures to safeguard distinctly British content, urging the Government to significantly increase its support for the film and high-end television industries. The report also called for expanded tax breaks for the sector, a proposal the government showed reluctance to further extend. “What attracts film makers to the UK is much broader than just our competitive tax incentives, with government investment in infrastructure, funding to attract inward investment, and support for skills development also contributing to our overall competitiveness,” a government official previously stated.
The Government reiterated its commitment to fostering a healthy and diverse film and television landscape, emphasizing the vital role of public service broadcasters in driving creativity and the importance of a robust independent sector in generating and distributing British content both domestically and internationally.