‘It’s a no-brainer’: the tax credit expansion campaign snowballs at Cambridge

A significantly expanded tax breaks regime is a “no-brainer” according to ITV’s Carolyn McCall, as all four PSB bosses threw their weight behind the burgeoning campaign.  

The prospect of the HETV tax breaks being expanded appears to have snowballed at the RTS Cambridge Convention, with the PSBs including it on their government wish-list and their leaders talking up the prospects on a panel.  

ITV chief executive McCall said the economic case is “irrefutable” and suggested chancellor Rachel Reeves, who attended the broadcaster’s 70th anniversary celebrations recently, is “very receptive” to the idea.  

She said around 25% of British dramas are currently being shot overseas as a result of the more attractive tax environment in countries such as Ireland or Hungary, suggesting they would relocate here if the UK regime was comparable. Such a move would create circa 7,000 jobs, she noted.  

McCall added the 40% film tax credit has super-charged that industry, and “it would be a no-brainer to have the same” for shows with a budget of £1m to £3m an ep.  

“So many people get their first jobs on those lower budget shows, which help start careers and grow our skills base. The government likes this and it will pay for itself. It’s about action. Just do it.”  

Paramount’s Sarah Rose reiterated hers and 5 colleagues view that the threshold for tax credits should be reduced to less than £1m an hour, meaning it would encompass 5’s drama slate.  

“We are making 120 hours of drama but we aren’t making all of them here. If there was an expanded tax credit we wouldn’t make more money, but the UK economy would. Rather than supporting skills in Hungary or Malta, we’d do it here. We have indies ready to go – they’d open bases in the regions and use British actors, writers and directors. £1m to £3m I support, but it just needs to be a bit lower, too.” 

Channel 4’s Jonathan Allan said the 40% credit had been proven to work in the film business. He said: “You get greater investment and foreign production coming here and it’s super important – but can we get it done quickly enough to make a difference?” 

BBC director general Tim Davie said the sector has a “pretty good case” to present to the Treasury that an expanded tax regime is accretive rather than just special pleading.  

“What we haven’t done is look at the jeopardy. Look at where the trend line is going – the rest of the world is adding tax credits. It’s a competitive market out there.” 

Sister founder Jane Featherstone is “leading the charge” on the proposals, McCall said, and Broadcast understands the proposals are still being fleshed out before being presented to the government.  

Scripted comedy is understood to be part of the mix in terms of the forthcoming proposals and Rose suggested kids television could also be included, while McCall put forward regional news as a potential recipient of a tax credit.