Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of funding British content creators through the taxation of online platforms.

We support domestic film and TV production through the tax system and through funding.

The Audio-Visual Expenditure Credit (AVEC) provides companies with a generous tax credit worth 34 per cent of their UK production costs on a film or high-end TV programme, or 39 per cent of their production costs on an animation or children’s TV programme.

As of 1 April 2025, films with a UK lead writer or director and budgets of under £23.5 million are able to claim an enhanced 53 per cent rate of AVEC on up to £15m of core expenditure. This applies to expenditure incurred from 1 April 2024. This will support the next generation of independent films and help develop a pipeline of UK film talent.

Film and TV are priority sub-sectors for our Industrial Strategy, and the Department for Culture, Media and Sport (DCMS) have committed to a new £75 million Screen Growth Package over three years to develop independent UK screen content, support inward investment, and showcase the best of UK and international film. This includes a scaled-up £18 million per year UK Global Screen Fund (2026–2029) to develop international business capabilities, enable co-productions and distribute independent UK screen content.

The Government wants to ensure that there is a balanced film and TV sector and welcomes international investment, including from subscription video-on-demand platforms. We therefore have no plans to introduce additional taxes or levies on these services. However, DCMS will continue to engage with major streaming services, with the independent production sector and with public service broadcasters on how best to ensure mutually beneficial conditions for all parties.