UK Film & TV Boom Faces Headwinds: What’s Next for British Production?
The UK has enjoyed a golden era for film and television production, fuelled by significant investment from Hollywood giants. Last year saw a record £2.8 billion poured into UK film production, a 23% jump driven by blockbusters like Avengers: Doomsday, Super Girl, and a series of Beatles biopics. However, this momentum is facing a potential slowdown as global dynamics shift.
The Rise of the UK as a Production Hub
For years, the UK has been a magnet for international production companies. A favorable exchange rate, skilled workforce, and generous tax incentives – including the Film Tax Relief – have made it a cost-effective and attractive alternative to filming in the US. The British Film Institute (BFI) reports that 91% of the record film spend in 2025 came from “inward investment,” highlighting the UK’s reliance on international funding. High-end TV also saw a substantial increase, with spending reaching £4 billion, largely driven by US streamers like Netflix, Amazon Prime Video, and Disney+ (accounting for 80% of the total).
Popular shows like Bridgerton, Slow Horses, and The Thursday Murder Club have not only captivated audiences but also demonstrated the UK’s ability to deliver high-quality content on a large scale. Even UK broadcasters like ITV, Sky, Channel 4, and Channel 5 saw a slight uptick in spending after a dip in 2024, reaching £688 million.
Did you know? The UK film and TV industry contributes over £7.6 billion to the UK economy annually and supports over 74,500 jobs.
The Netflix Factor & The US Pullback
The current shift in the landscape is largely attributed to Netflix’s strategic realignment. As Netflix pursues a takeover of Warner Bros Discovery (WBD), CEO Ted Sarandos has indicated a move to bring more production back to the US. This isn’t solely about the acquisition; it’s also a response to pressure from US lawmakers keen to see more American jobs created and production kept within the country.
Sarandos highlighted the impact of new tax credits in New Jersey, stating that they’ve made filming there “so competitive” that there’s “no reason to go overseas.” He revealed that 11 projects, previously slated for the UK, have already been redirected to New Jersey. This trend is likely to extend beyond Netflix, impacting other studios as well.
The Trump Effect: Increased US Incentives
The pressure to repatriate production isn’t limited to Netflix. Donald Trump’s advocacy for increased domestic production is also playing a role. The US is actively bolstering its own incentives to attract film and TV projects, creating a more challenging environment for the UK to compete. This is a significant departure from the past decade, where the UK often held a clear cost advantage.
Pro Tip: Production companies should carefully evaluate the evolving incentive landscape in both the UK and the US to make informed decisions about filming locations.
What Does This Mean for the Future?
While the UK remains an attractive location, the future isn’t guaranteed. The UK government will need to proactively address the changing dynamics to maintain its position as a global production hub. This could involve enhancing existing tax incentives, streamlining the production process, and investing in skills development.
The impact won’t be immediate. The £6.8 billion total spend on UK-made films and high-end TV in 2025 demonstrates continued strength. However, the seeds of potential decline have been sown. The UK needs to adapt to a more competitive global market and demonstrate its continued value to international production companies.
FAQ: UK Film & TV Production
- What is Film Tax Relief? A UK government incentive that provides a cash rebate on qualifying film production expenditure.
- How much does the film and TV industry contribute to the UK economy? Over £7.6 billion annually.
- Are US tax incentives becoming more competitive? Yes, particularly in states like New Jersey, which are offering significant financial benefits to attract production.
- Will Netflix completely pull out of the UK? It’s unlikely, but they are likely to reduce their investment in the UK and prioritize US-based production.
Reader Question: “I’m a freelance crew member in the UK. Should I be concerned about job security?” – The situation is evolving. While the overall market remains strong, increased competition means it’s more important than ever to diversify your skills and network.
Explore more insights into the UK creative industries on the BFI website. Stay updated on the latest industry news and analysis by subscribing to our newsletter here.
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