PARLIAMENTARY DEBATE
United States Film Tariff - 7 May 2025 (Commons/Commons Chamber)
Debate Detail
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.
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?
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.
I want to caution slightly against a word that has been used three times now, I think, with Members saying that President Trump has “announced” something. A clear policy has not been announced—I think we need to be careful about that. As I said earlier, it is difficult to see how a tariff would be imposed on a service or on films in this way. I want to be careful and precise in the way we move forward on this.
I have been asked what we are doing: we have already had people in Washington DC talking with people in the Trump Administration at the highest level, and we will progress that. Of course, we want to do everything we can to preserve the strength of the industry.
The hon. Member for Cheltenham (Max Wilkinson) referred to our relationship with the US. I should also say that the Secretary of State was in India last week; both she and I want to ensure that we also have a much stronger relationship with India, which is one of the fastest growing economies in the world. We think we can do a great deal more in that film production space as well.
It is really important that we focus on skills in the UK screen industry; that has been raised repeatedly with me. I want every kid in the country to have a chance to work in the creative industries, including in film and high-end television. Many would not even think that that was a possibility, so we need to transform the whole pathway into those industry skills; I know that that is one of the things that the hon. Lady’s Committee has raised.
As the Minister rightly said, the current situation is of mutual benefit to our two nations. There is one thing that he could do right now, though, and for once I agree with the Minister—sorry, I meant to say the hon. Member for St Albans (Daisy Cooper); I will get my facts right in a moment. The key point is that business rates are proving to be crippling for many of our studios, including Elstree, so I urge the Minister to have another go at the Treasury. I remember a similar situation with the culture recovery fund; the Treasury is resistant to begin with, but if he keeps going, he will get some further movement. That would be a huge fillip to the industry and would help it to withstand whatever shocks it may face.
The second point is about freelance work. I have often worried that so much of the creative industries relies on freelance workers. In many cases, that is great, because people want that kind of career, but they also need some degree of security if they are to be able to take out a mortgage and plan their economic future. That is definitely one of the things that we will look at in relation to the industrial strategy, which we hope to be publishing soon.
Leaving aside the decisions that the Chancellor has made and the impact that they have had on the economy, can the Minister reassure us that he will continue to update the House and the industry more widely about how the Government will mitigate these tariffs if they come to fruition?
“WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Does the Minister agree that the key to making great movies is to ensure artistic freedom and expression and to grow the necessary skills? With that in mind, would he visit Tech Trowbridge in my constituency, which is doing a good job in upskilling young people in multimedia?
“the only person on Earth who’s more Alan Partridge than Alan Partridge is Donald Trump.”
Can the Minister assure the blossoming creative sector in North Norfolk that he values its contributions to our economy, and can he give reassurance that the Government will do everything they can to protect the sector from another Trump trade tantrum?
I welcome the way in which the Minister is dealing with this situation. Tariffs are speculation at the moment, but before they become policy it is important that we get the message over to the Administration. Will he ensure that in constructing his arguments he consults with the Northern Ireland Executive to ensure that Northern Ireland’s voice is heard in these discussions?
A couple of weeks ago I visited Cineco, one of our many British film support companies, which makes sets and props. One point it made on skills is that the apprenticeship model does not work terribly well for industries that have so many freelancers and such lumpy work schedules. As a sidebar to the Minister’s meeting with industry leaders tomorrow, would he please raise and discuss that with industry leaders?
The hon. Lady is making a point that has been made several times. Tom Cruise is one of the biggest investors in the UK because of all the movies that have been made here, and we are very grateful to him. The British Film Institute will be honouring him next week, and I think that is really good. As I say, we are the best place in the world to make movies, and we want to continue that.
I feel very left out, not having a studio in my constituency, but we have produced some of the best actors in the world, including Sir Stanley Baker. I think one of his best films—you will know this, Mr Speaker—was “Sodom and Gomorrah”.
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