The UK’s Culture, Media and Sport Committee has called on the Chancellor Rachel Reeves to use next month’s budget to bring forward tax relief to support the distribution and exhibition of independent British films.
In a letter to Reeves, the committee called for the introduction of a 25% tax relief for the prints and advertising costs of films, claiming the Independent Film Tax Credit (IFTC), as recommended in the April 2025 report on British film and high-end TV.
The committee warned that while there are early signs that the IFTC is making a difference to the industry, there are still challenges when it comes to distribution and exhibition.
The letter added that the additional tax relief has the power to generate a cycle of investment into independent British film.
The Chair of the CMS Committee, Dame Caroline Dinenage MP, said: “The introduction of the IFTC in the last budget has provided a welcome boost to our film industry, but without proper marketing, many great British films end up missing out on the audiences they deserve.
"With the government’s industrial strategy recognising film and TV as a frontier industry, the Chancellor now has the chance to follow through on the government’s commitment, support the independent film sector and demonstrate that she recognises the potential it has to drive growth and create jobs.”
The IFTC offers 40% tax relief to independent British films. Introduced by the previous conservative government, it has sparked a significant growth in lower- and medium-budget film production.
The UK Government’s Autumn Budget 2025 will be delivered on 26 November 2025.
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