U.K. Government Formally Rejects Streaming Levy

The U.K. government has recently made a firm stance against implementing a 5% levy on streaming platforms and mandatory IP retention rules, choosing instead to focus on maintaining a “mixed ecology” that supports both international investment and local production in response to parliamentary recommendations on British film and high-end television.

In a formal response published on July 3, the government rejected several proposals put forth by a parliamentary committee while reiterating its commitment to keeping the U.K. as a global production hub. With U.K. production spending reaching £5.6 billion ($7.9 billion) in 2024, the government emphasized the importance of inward investment and co-productions, which accounted for £4.8 billion ($6.5 billion) of the total.

One of the key decisions made by the government was the rejection of a proposed levy on streaming platforms, citing the economic benefits that these services bring to the domestic industry. Major productions like “Barbie” and “Bridgerton” were highlighted as examples of the positive impact that streaming services have had on the U.K. economy, contributing millions of pounds and supporting thousands of local businesses.

The government also emphasized the importance of striking deals with both streaming platforms and public service broadcasters, noting that each offers unique benefits to producers. While the streaming levy proposal was dismissed, other committee recommendations, such as tax relief on Prints & Advertising costs for independent films and requirements for productions to report regional spending breakdowns, were also turned down.

In response to workforce concerns, the government declined to appoint a Freelancers’ Commissioner but offered to appoint a “creative freelance champion” within government instead. Calls for a guaranteed basic income or minimum hourly wage for creative freelancers beyond the national minimum wage were also rejected.

Overall, the government’s response highlighted the challenges faced by the industry in recent years, including the impact of COVID-19 and the U.S. Guild strikes in 2023. The government stressed the importance of protecting the local workforce as the foundation for future growth in the sector.

This response follows the government’s announcement of the £75 million ($102 million) Screen Growth Package as part of the Creative Industries Sector Plan, demonstrating its ongoing commitment to supporting the film and high-end television industry in the U.K.