Local MP requests debate on film industry growth

By Linden Grigg

GOSPORT MP, Dame Caroline Dinenage, has requested the new Labour Government to fulfil previously announced growth measures for the UK film industry as she asked her first question since returning to Parliament this week following the summer recess period.

The former Culture Minister and Chair of the Culture, Media & Sport Select Committee used this opportunity to request a debate on the UK’s commitment to the creative industries. This would allow the Government to state their support for tax relief measures that was announced by the previous Conservative administration at the Spring Budget.

Measures confirmed by Jeremy Hunt included tax credits for UK independent film and tax reliefs for visual effects costs. They were warmly welcomed by industry heavyweights BFI including Christopher Nolan and Gurinder Chadha; who described the tax credit as a “game changer for UK filmmakers, creating jobs and ensuring great British success stories continue to be told.”

Meanwhile the CEO of UK Screen Alliance, Neil Hatton, is involved in a company working in Post Production, VFX, Animation, TV and Film Studios, and Production Service. He welcomed the relief as being a “major breakthrough. Before, productions would either film in the UK or do their VFX here, but rarely both, because of the cap on tax relief. That will no longer be the case and the significant growth potential in the UK’s VFX sector will now be unlocked.”

However the announcement of the 2024 General Election on May 22 (Wednesday) coincided with the closure of a consultation on additional tax relief for visual effects costs. Therefore the statutory instrument which would have brought the tax relief measures into effect wasn’t laid before Parliament and hasn’t been discussed since the new Government came to power on July 5.

Ms Dinenage spoke in the House of Commons on Thursday morning (September 5), saying: “The Leader of the House understands more than most the value of the British film and high-end TV industry to our economy and to jobs. She will know that, in this year’s spring Budget, the previous Government introduced tax credits for UK independent film and tax relief for visual effects costs.

“I am a bit worried, as is the sector, because the Leader of the House’s party did not support the finance Bill that introduced those measures. Could we have a debate about the new Government’s commitment to our world-leading creative industries, during which they would be able to restate their commitment to those much-needed tax incentives for growth and the timescales for their implementation?”

Labour’s appointed Leader of the House, Lucy Powell, responded from the despatch box: “I thank the hon. Lady for that excellent question. She has long pursued these issues as the former Chair of the Select Committee on Culture, Media and Sport; I know she is standing again for that position, and I wish her good luck in that election, which I think takes place next week.”

“She is absolutely right: the tax credit system, which was introduced by the last Labour Government, has been vital to securing the film industry and other creative industries, the huge talent that we now have, and the support this brings to our economy and the wider creative economy. “We have long been committed to those measures, but obviously, any future announcements will be for the Chancellor in the forthcoming Budget.”

The Gosport MP commented upon exiting the Chamber: “Labour talk a tough game on going for growth, and their support for our creative industries, but I didn’t get the assurances I was looking for. Earlier this year the Culture, Media, and Sport Select Committee, which I Chaired, pushed for these tax incentives which are oven-ready pathways to growth.”

“The creative industries are a global British success story growing at more than 1.5 times the rate of the wider economy over the past decade and employing thousands of people. Now is the time to secure and build upon on our stellar global reputation. I asked for this debate to give the Government the opportunity to signal their support to these measures which the sector so warmly welcomed earlier this year and are so eagerly waiting for.”

PICTURED BY ALAMY (AC4A2P): Empty backbenches are visible in this stock photograph from inside the House of Commons.