The government has ruled out imposing a 5% levy on the UK subscriber revenues of streaming services.
In April the Culture, Media and Sport Committee recommended the levy that would be paid into a cultural fund administered by the British Film Institute (BFI).
However, in its response the Government said it was mindful of the benefits streaming services provide into the domestic TV industry and wider 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,” read the government response, published today.
The committee’s report said urgent action needed to protect distinctly British content as MPs call on Government to ramp up support across film and high-end TV industry.
It also called for tax breaks for the industry, which the government was relucatant to extend further. “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”.
The Government said it wanted a healthy, mixed film and TV landscape, where public service broadcasters provide an engine room of creativity; where a strong independent sector creates more UK IP, producing and distributing British content seen at home and around the world.
