Holly Miller
Specialist film and TV PR consultancy Percy & Warren reveals the findings of its pre-budget survey of UK film and television producers. Across the sector there is concern and uncertainty mixed in with a degree of hope for the future for the production industry ahead of tomorrow’s budget. According to the Percy & Warren survey, 69% of respondents said they were not confident that the government’s budget would support the UK’s film and TV sector, with only 8% feeling confident in its potential benefits. Despite this caution, 54% of producers believe the industry will see growth in 2025. 69% of respondents plan to invest in their growth for their companies next year, underscoring the industry’s resilience and commitment to development even amid challenges.
CONFIDENCE IN BUDGET SUPPORT REMAINS LOW
The survey suggests that respondents are uncertain and lack confidence in whether the budget will reflect a government commitment to supporting the UK's film and television industry. When asked about their confidence in the budget's impact on the industry, responses leaned heavily towards uncertainty, with only a minority expressing optimism that the allocated budget would adequately address the industry’s needs. 69% were not sure while 23% are not confident, and 8% are confident.
CALL FOR SUPPORT IN KEY AREAS
Survey respondents identified freelancers, independent producers, and regional production hubs outside of London as the areas most in need of government intervention. These areas, often seen as the backbone of the UK’s creative output, are often perceived to be under-resourced, and respondents stress the importance of targeted funding and policy measures to ensure their survival and growth. Ed Kellie of Screendog said the area needing most support is “Indie productions – without them, there are no indie producers and no freelance jobs”, while Mickey Angelov of Look Aside Films said "it's Independent film productions (sub £3M), as well as independent development houses”.
CHALLENGES WITH FINANCING AND COMMISSIONING
A significant portion of respondents pointed to financial and commissioning challenges as their primary barriers to success. Financing projects and securing contracts remain pressing issues for producers, with many indicating that unreliable cash flow hinders their ability to deliver consistent and high-quality content. To address this, industry professionals are calling for policy initiatives, such as tax credits for unscripted productions and support for timely payments through tax credit adjustments.
The main issues respondents identified as their main barriers to growth are: Lower volume of commissions; Lower free-to-air commissioning budgets; Securing finance to cover the gaps from commissioners or co-producers; Lack of visibility for producers in the press vs the credit broadcasters and distributors secure; Being competitive in a global market for selling content and IP and Productions going overseas.
OUTLOOK FOR 2025
Although the industry holds an uncertain view on its growth potential for 2025, many respondents reported intentions to invest in their own companies in the coming year. This suggests a cautious optimism among producers who, despite the challenges, are committed to sustaining and advancing the industry. However, they urge the government to take proactive steps to create a more stable environment conducive to long-term growth. 70% of respondents are investing in their growth in 2025.
Industry professionals have voiced the need for policy reforms, with popular suggestions including tax credits for unscripted content and R&D budget tax reliefs. Respondents underscore the importance of these incentives in stimulating the UK’s competitive edge, attracting international collaborations, and bolstering independent productions.
Holly Miller, Director of Percy & Warren said "The UK film and TV industry is facing a crucial moment. While there’s cautious optimism and a commitment to growth, there’s also a clear need for targeted support from policymakers. Freelancers, independent producers, and regional hubs are the lifeblood of this industry, and they’re asking for meaningful, timely support measures like tax credits and other financial solutions. The resilience of our industry is unmistakable, but sustained growth will require partnership and foresight from the government. We’re eagerly awaiting the budget news this week as there’s so much on the line for a lot of us."
Jonathan Schütz, founder of Curly Lizard Films said “I don't know if this is in any way realistic, but putting in place unscripted production tax credits to ensure that commissioners aren't just having to look to the nations and regions vs London, but also have to look to small indies vs the big ones.”
Ed Kellie, Founder & Creative Director, Screendog Productions said "Why is unscripted excluded from tax credits when drama, children’s, indie films, 'high end tv' all get tax credits? It smacks of cultural snobbery but all the genres provide jobs for UK companies and freelancers, so why discriminate?"
Mickey Angelov, Look Aside Films says "One regulation the government should aim to implement is budgetary support for the companies' operations themselves, not only support in the form of post-funding tax relief; whilst the current incentives are indeed very valuable, in the current model there's still need for gap financing and companies are struggling to stay afloat in the incredibly long period between development and distribution. Many are leaning on TV commissions, venture funds, or simple services to create some sort of sustainable source of income and not rely purely on potential sales or development funding. We must focus on creating and managing a government fund that support the businesses themselves in the creative sector, not only projects, because companies simply cannot focus on developing said projects if they can't stay out of the water.”
FURTHER CALLS FOR AN UNSCRIPTED TAX CREDIT
Following this year’s HETV tax credit update to 40% for scripted, Nest Productions’ co-founder Derek Drennan began an industry campaign for the equivalent in unscripted. The Percy & Warren survey results reflect the demand for this. “With a new government at play and Lisa Nandy in her seat at the Culture Secretary for Media and Sport, it’s time we finally extended the reach of the UK Tax Credit to all areas of TV. In an industry where 75% of freelancers in unscripted find themselves out of work and numerous production companies are grappling with uncertainty, the lack of financial support does ring big alarm bells. I am working across 10 projects at the moment that are all deficit financed and I just think if we had access to a tax credit then we would have these programs so much more quickly,” said Drennan. “A lot of people in factual, reality and entertainment have never been part of the tax credit regime and yet this is potentially life changing. Simply ignoring the economic and cultural contributions of unscripted does a massive disservice to everyone. In this absolute uncertain madness, it is increasingly evident to me that something as simple as a tax break for unscripted could be a massive game-changer. Such a focus on incentivising producers by investing in unscripted productions would almost certainly provide jobs, income, economic growth and a vibrant landscape for audiences to engage with, in the same way as scripted does.”
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