The recommendation of a 5% levy on streaming platforms has been formally rejected by the United Kingdom government in favour of a mixed ecology that welcomes both international investment and local production. A cross-party parliamentary committee had proposed a 5% streaming levy to support high-end national production, initially on a voluntary basis, with provision for this to be made statutory. That was rejected by the culture secretary and has now been formally dismissed in a government response.
Production spending on film and high-end television reached £5.6 billion in 2024, a 31% increase since 2023, with £4.8bn of this total coming from inward investment and co-productions.
The government said that it wants a mixed ecology and welcomes inward investment, including from online video subscription services. It said this allows producers to strike deals with streamers, which typically involve higher upfront fees, and with public service broadcasters, whose terms of trade mean that secondary rights normally remain with the producer.
In its response, the government said: “We are mindful, therefore, of the importance of enabling strong inward investment given the benefits it provides for our domestic industry and wider economy, and we have no plans to introduce a levy on SVoD services.”
The government also declined several other recommendations. It ruled out a return to the European Union’s Creative Europe, writing: “Whilst we do not have any plans to rejoin Creative Europe, we recognize these sectors’ unique and valuable contributions to Europe’s diverse cultural landscape and the economic benefits that relationship brings.”
The full response is published as British film and high-end television: Government Response in an appendix to the report by the cross-party Culture, Media and Sport Committee.