United States Film Tariff

Debate between Stuart Andrew and Chris Bryant

Wednesday 7th May 2025 Commons Chamber

[Stuart Andrew (Daventry) (Con)]

(Urgent Question): To ask the Minister if he will make a statement on the potential implications for the UK film industry of the United States’s proposed 100% tariff on foreign-produced films.

[The Minister for Creative Industries, Arts and Tourism (Chris Bryant)]

As the House will be aware, President Trump announced on Sunday that he had authorised the Department of Commerce to initiate tariffs on all movies produced in foreign lands. He has made other comments since. This is a very fluid situation and we will continue to take a calm and steady approach. I spent most of Monday talking to UK and US film makers and the general secretary of Bectu, among others, and I can tell the House that we are already in active discussions with the top of the US Administration on this subject.

We are working hard to establish what might be proposed, if anything, and to make sure our world-beating creative industries are protected. We are absolutely committed to ensuring that the film industry can continue to thrive and create good jobs right across the UK. UK film and high-end television generated production spend of £5.6 billion in 2024, and we want to work with our domestic industry and international partners to continue to build on that success.

We are absolutely clear that the deep ties between the US and UK film industries provide mutual benefits to both countries. Productions are, by their very nature, international partnerships, which are often developed and created across different countries and locations. Indeed, US movies are often multinational precisely because US movies earn far more overseas than they do domestically in the United States. The UK and the US both benefit when the likes of “Star Wars” and “Mission Impossible” are filmed in the UK, just as we both benefit from the close working relationship between our producers, talent and crew.

Our countries have a long history of working together to drive the growth and creative success of our film and television sectors. From Cary Grant to Hugh Grant, and from Alfred Hitchcock to Christopher Nolan, British talent has often been at the forefront of the US sector, and I am absolutely sure this will continue in the years ahead. I was once told by a film producer, “Never judge a film by the first 10 minutes.” I think we can say the same of this.

[Stuart Andrew]

I thank the Minister for his answer. As he rightly says, we learnt over the weekend that the President’s Administration intend to impose a 100% tariff on all films produced outside the US. It is understood that he has directed the US Government to begin implementing the policy immediately.

I welcome the fact that the Minister recognises the film industry in this country as a jewel in our crown of world-leading creative industries. I also point out that the sector alone is worth £1.96 billion here, and supports 195,000 jobs up and down the country. It shows off our great British culture and values, the talent we have, and some of the most amazing settings for so many films of different genres.

I am glad that the Government are working to ensure that all is done to give confidence to our directors, actors, screenwriters and producers that they are thinking about them, because for both independent film makers and major studios this action could result in cancelled projects, lost investment and a significant decline in UK film exports, which is especially hard given that they are still recovering from the covid pandemic. But I have to say that it is disappointing the Government failed to start the negotiations with President Trump’s team for five months after the election and fired Britain’s top trade negotiator. It is difficult not to wonder whether a different approach could have led to a different outcome.

None the less, the priority is to protect our film industry, so what assessment has the Minister made of the potential impact on the UK film sector? What immediate steps are the Government taking to engage with the US and ensure that the investment in UK facilities by many US businesses, which would be affected, is highlighted? What contingency plans has he prepared in the event that no exemptions can be secured? Finally, what assessment have the Government made of the potential drastic cut in BBC Studios’ profits from sales to the US market, and what impact could that have on the licence fee?

[Chris Bryant]

First, may I, on a co-operative note, say that one reason we have a very strong film and high-end television sector in the UK is the joint policy, adopted across several years by both Conservative and Labour Administrations, to ensure we have very competitive tax credits. I pay tribute to the work done by the previous Government, which we were able to enhance when we brought in two new tariffs—I mean two new tax credits—in the Budget just before Christmas. No, we are not in favour of bringing in tariffs. I think I am right in saying that in 1947 the Labour Government did bring in tariffs on US films, because we thought too many US films were being shown in British cinemas. That strategy did not go very well: the Americans simply banned the export of US films and we ended up watching “Ben Hur” repeatedly in every cinema, as well as a film called “Hellzapoppin’” which I do not think anybody has watched since. However, the successful bit of what we did in 1947 and 1948 was that we invested in the British film production system, which led to films such as “Hamlet” and “Kind Hearts and Coronets”. That is the pattern we still want to adopt.

Let me be absolutely clear: we believe that there are mutual benefits to both of us if we continue on the path we have selected. I am not sure precisely what is intended: I do not know what a tariff on a service would look like and I do not know whether the intention is for it to be on movie theatres. The danger is that the US already has two major problems with its film industry: one is distribution costs, so if the US went down that route, it could lead to heavy problems for the industry; and the other is the very high cost of making movies in the US.

Most films these days are an international collaboration of some kind, and we want to maintain that. Even the British production of “Paddington”—I am looking at the hon. Member for Cheltenham (Max Wilkinson) only because I suspect he is about to mention it; and he has just given me a Paddington hard stare—was made by StudioCanal, which is, of course, part of Canal+. It had Spanish actors as well as British actors. This is just a fact of modern films: they are multinational and that is one of their strengths. Incidentally, I do not think that Paddington ever went to Peru—I do not think they filmed any of it in Peru. I am also told by my Peruvian friends that there aren’t any bears in Peru.

Creative Industries

Debate between Stuart Andrew and Chris Bryant

Monday 27th January 2025 Commons Chamber

[Stuart Andrew (Daventry) (Con)]

It really is a pleasure to speak in today’s debate. Right at the outset, I apologise that I will not be here for the closing of the debate, because I have to travel back to Leeds for a funeral tomorrow.

As the Minister said, our creative industries are world leading. With limitless creativity, imagination and entrepreneurial spirit, our creative industries are fundamental to the UK economy, and the contribution they make has often been underappreciated. These industries generate £124 billion a year and employ over 2.4 million people in every corner of the country, and as we have heard, growing the economy means growing our creative industries—even if there was a desperate attempt by the Minister to boost his book sales during his speech.

The importance of the creative industries goes beyond the economy. They provide the news that informs our democracy, the events that showcase our talent and the films that we all love. The imagination of our designers, writers, artists and creators is world leading and brings joy, inspiration and opportunity to our lives. It is testament to the UK being a world leader in many things, events included, given the phenomenal success of events such as the Olympics and other sporting events, the coronation and, of course, the Eurovision song contest. A moment ago, my right hon. Friend the Member for Salisbury (John Glen) mentioned Darren Henley’s book. He actually mentions me in that book as the first and only Minister for the Eurovision song contest. It was probably the only position I have held in government that my partner was actually interested in.

[Chris Bryant]

Did we win?

[Stuart Andrew]

No.

For all the reasons I have mentioned, we as Conservatives backed our creative industries in government. Our record on supporting the creative industries speaks for itself: between 2010 and 2022, those industries grew at more than twice the rate of UK gross value added, expanding by more than 50%. More than 1 million new jobs were created in the sector during that period. During the pandemic, we introduced unprecedented support for the creative industries, including the £1.57 billion culture recovery fund, the £500 million film and TV production restart scheme, and the £800 million live events reinsurance scheme. That support protected over 5,000 organisations and supported 220,000 jobs, ensuring that our creative industries have been able to bounce back.

Our commitment to support the creative industries also extended to significant tax reliefs. We introduced over £1 billion of tax reliefs for the creative industries, including support for filmmakers through the UK independent film tax credit and business rates relief for theatres and cultural venues. This investment complemented our creative industries sector deal, which put £350 million of public and private investment into the sector. A key example is the £37 million and the new devolved powers to the North East mayoral combined authority to create a film and TV powerhouse up in the north-east, which will enable £450 million of private investment to build the new Crown Works studio. This is an important measure as we seek to spread the opportunities for the creative industries right across the United Kingdom.

We published a sector vision setting out our ambition to grow the creative industries by £50 billion and to create 1 million extra jobs in the creative sectors. This sector vision set out not warm words or platitudes, but a real plan backed by real investment. Our plan included a £28 million investment in the Create Growth programme to support high-growth creative businesses across the UK; an additional £50 million for the second wave of the creative industries clusters programme, building on the £56 million announced in 2018; and £3.2 million for the music export growth scheme to enable emerging artists to break into new international markets. It was a real plan backed by real investment to grow our creative industries by £50 billion.

Personally, I do not doubt any of the Ministers’ personal ambitions for the creative sectors. Where the Government are ambitious, we will always seek to be a constructive Opposition, because the potential to grow is huge and the UK has such a great reputation. Equally, we will do our job by highlighting the impact when choices made by the Government pose a significant risk to the sector, because that is the right thing to do.

In opposition, Labour Members promised to

“fire up the engines of our creative economy”,

and said that they would make the creative industries

“central to a decade of national renewal”.

That was a great ambition, which makes it even more confusing that Labour failed to support every single tax relief the Conservatives introduced for these industries after 2010. I am afraid to say that the reality so far is that significant harm is being done by the Government. In the Chancellor’s Budget of broken promises, Labour drove the tax burden up to its highest level, surpassing the amount after the second world war. Far from firing up the economy, they have extinguished growth by introducing a national insurance jobs tax that will cost employers in DCMS sectors £2.8 billion.

--- Later in debate ---

[Stuart Andrew]

I think we have absolutely shown our commitment, as I have just illustrated, to the creative industries and to wanting to grow them. Equally, we want to make sure that the courses people are doing equip them well for the opportunities of the future, and I do not see that there is anything wrong in always raising such questions.

[Chris Bryant]

The shadow Minister said that we—Labour Members in opposition—voted against every single tax relief for the creative industries, but he knows perfectly well that we supported every single one of them and that we originally initiated them. Can I just suggest that we stop this silliness? I am guessing that at some point Conservative Members will vote against the Third Reading of the Finance Bill, which will have a tax relief in it, and if that means that we start saying that they vote against every tax relief, it will be a nonsense. It would be better if we all just grew up, and started saying that we all support tax reliefs for the creative industries.

[Stuart Andrew]

Given that the Minister has just been going on about 14 years of the last Conservative Government, I find that a bit hypocritical, but that does not surprise me.

The Government have also slashed retail, hospitality and leisure relief, and set out plans to burden businesses with more than 70 radical 1970s-style regulations, imposing £4.5 billion of additional costs on business. I am worried that there seems to have been a failure to protect the creative industries from the Chancellor’s growth-killing Budget, just as the Department failed to protect them from the Deputy Prime Minister’s radical Employment Rights Bill.

I welcome the £60 million support package, but will it touch the sides when measured against the impact of the Budget? Do not take it from me—take it from Arts Council England, which warned that the Government’s national insurance jobs tax will have

“significant implications for cultural organisations.”

Take it from the Music Venue Trust, which has warned that changes to retail, hospitality and leisure relief will put more than 350 grassroots music venues at

“imminent risk of closure, representing the potential loss of more than 12,000 jobs, over £250 million in economic activity and the loss of over 75,000 live music events.”

Oral Answers to Questions

Debate between Stuart Andrew and Chris Bryant

Thursday 16th January 2025 Commons Chamber

[Stuart Andrew (Daventry) (Con)]

January is traditionally a time when people commit to exercising more, and it is the perfect opportunity to encourage a more active nation—

[The Minister for Creative Industries, Arts and Tourism (Chris Bryant)]

Go on then!