The UK government has formally rejected a proposed levy on international streaming services operating in the country, following months of debate and scrutiny from Parliament’s Culture, Media and Sport Committee. The decision was confirmed this week in an official government response to the committee’s report on the British screen industries, which called for streamers such as Netflix, Disney+, and Prime Video to contribute financially to local content production.
According to the parliamentary report, the committee argued that a levy of approximately 1% on the UK revenues of streaming platforms could generate an estimated £50 million annually to support British film and television production. The committee said the funds were needed to sustain the cultural and economic vibrancy of the UK’s screen industries and ensure continued investment in British stories.
However, in rejecting the recommendation, ministers said that the UK’s current production boom showed no signs of faltering and that a levy risked harming investment rather than supporting it. “We are not persuaded that a levy on streaming services is necessary at this time,” the government response stated. “We continue to monitor the situation closely, but the evidence suggests that investment in UK content by global streamers is already strong and growing.”
The government also pointed out that several major international platforms have voluntarily increased their commissioning of British-made series and films, creating jobs and contributing to the creative economy. According to industry data cited in the committee’s report, spending by international streamers on UK production rose to £1.7 billion in 2023, up from £1.3 billion in 2021.
Caroline Dinenage, Chair of the Culture, Media and Sport Committee, expressed disappointment at the government’s decision, saying in a statement: “Our report made clear that British content is under pressure from global competition, and that the levy was a modest and proportionate way to safeguard our industry’s future. Without action, we risk seeing UK stories and talent sidelined.”
The committee’s report also raised concerns about the dominance of international platforms over domestic broadcasters and warned that market forces alone might not adequately protect British cultural output. Still, the government maintained that it would prefer to work collaboratively with the industry rather than impose new financial burdens.
Industry reactions were mixed. While some UK production companies welcomed the committee’s push for more secure funding, others expressed relief at the government’s rejection of a mandatory charge, fearing it might discourage future investment or lead streamers to cut back on UK commissions.
For now, the UK’s rapidly growing streaming sector remains free of additional levies, but the government has left the door open for future intervention if market conditions change. “We will keep this under review and engage with all stakeholders to ensure the long-term sustainability of the UK’s world-leading screen industries,” the response concluded.