Earlier this summer, the Government published its response to the Culture, Media and Sport Committee’s report into British film and high-end television.

Traditionally, the Committee’s work has proved more influential than others on Government policy, something the Chair highlighted last year when pointing to its early recommendation of an independent film tax credit. Its most recent report was a comprehensive account of the “whole value chain: from independent, domestic production through to the distribution of content to audiences” and was accompanied by a raft of recommendations.

Perhaps the most eye-catching recommendation was a so-called ‘streamer levy’ of five percent on UK subscriber revenue of all subscription video-on-demand platforms operating in the UK, borrowing from similar levies in other jurisdictions. According to the Committee, this would go into a fund administered by the BFI and address what it called a ‘crisis’ in domestic high-end television. Other recommendations included enhanced tax incentives for high-end television, amending the definition of research and development for tax relief purposes so that it captures activity by the creative industries, and a 25% tax relief for the Prints and Advertising costs of films claiming the Independent Film Tax Credit.

The response to the Report from the industry was mixed, and in large part dominated by discussions about the effect and wisdom of introducing a streamer levy. As for the Government’s reaction, its published response is clear that it has “no plans to introduce a levy on SVoD services”, citing the importance of “enabling strong inward investment given the benefits it provides for our domestic industry and wider economy”.

As for other recommendations from the Committee’s report, the Government’s response largely avoids making any commitments, at least for now. It confirms that no changes are planned in relation to the definition of R&D for tax relief purposes, although points to the announcement in the Creative Industries Sector Plan (commented upon here) that HMRC will publish in due course revised guidance for R&D tax reliefs. Similarly, there are no plans to review the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, something the Committee had urged so that producers have access to the full range of finance for their films. Finally, as for proposed changes to tax reliefs, the response simply states that “the Chancellor makes decisions on tax policy at fiscal events in the context of the wider public finances”.

To read the Response in full, click here.