Made in Britain
As Hollywood began to outsource its physical production from the Los Angeles area, the United Kingdom became one of the most prominent production hubs in the world.
Lured by competitive tax incentives and world-class infrastructure, titans like Disney, Warner Bros., and Paramount effectively turned London into a second home. But as more and more money is being spent on financing foreign productions in the UK, a decreasing proportion is spent on British projects, raising an uncomfortable question for the industry:
Is there a risk of Great Britain becoming the backlot of Hollywood's studio system?
Film production in the United Kingdom is at an all time high. The total UK spend on films during 2025 was £2.8 billion, which is the highest it has ever been and a 31% increase from the previous year.
On the surface, the British film industry has never looked more prosperous. Although, according to numbers released by the British Film Institute, domestic features only accounted for £193 million of that number.
A total of £2.5 billion was spent on so called inward investment features, where foreign projects are partially or fully produced on British soil.
Not only are more funds being allocated to inward investments, they are also growing at a significantly faster rate while proving to being more volatile during uncertain times such as the American trade union strikes of 2023.
In written evidence submitted to the Culture, Media and Sport Committee, producer Michael Kuhn described the independent film sector in Britain as 'almost dead'. He went on to say that the prioritisation of inward investments has resulted in the British studio system being 'hostage to the fortunes' of foreign investments.
While these projects are significant injections into the British economy, these trends also prompt the question whether the fruitful investments from overseas pose an existential threat to British cinema.
"In an ideal world there would be more of a thriving home grown film industry and a good balance between that and inward investment.
But that's not where we are at the moment."
Philippa Childs
Head of BECTU
A civil war
The British Film Commission is an agency that promotes the United Kingdom as a location for productions, but also supports inward investment in the U.K. In a statement to the Culture, Media and Sport Committee, they argued that inward investment is 'vital for the health of the UK’s screen sector as a whole'. They meant that this provides funding and support that makes it possible for 'the wider ecosystem to flourish' and that the absence of that activity would result in a 'decline in investment in infrastructure and the skills pipeline'.
Although this opinion is not shared by the trade union BECTU. In a comment obtained by Spark, the head of the organisation, Philippa Childs raised concerns about the effects that inward investments have had on the domestic film industry. She describes the union strikes in America as having had a 'devastating impact on production in the UK'. As British film production went silent, 'thousands of members were out of work'.
The British film industry found itself at a standstill. Not because the UK ran out of stories, but because Hollywood stopped exporting them.
Childs even believes that the volatility inward investments come with, has caused British workers in the industry to leave the country for other markets and more stability. "They simply don’t have the reliability of income to continue," she said.
In 2022, BFI published a Skills Review that expressed similar concerns. They stated that crew shortages 'are especially threatening for the success of the independent film sector, which serves as a developing ground for new and exciting world-class UK talent but typically operates under a less profitable business model'. Childs believes that as crew members leave Britain, it is possible for the UK to be deprived of the necessary skills to support future production booms, and that big foreign productions could 'choose other territories'.
To combat these issues, the Independent Film Tax Credit was rolled out during 2024, but the BFI does not 'expect to evaluate the full impact ot the IFTC' until next year.
The British Film Commission was contacted to provide their point of view, but declined to comment on the matter.
The view from the grassroots
As an alternative to the traditional independent scene, film communities have begun to emerge all over the country, and the North East has become a vibrant scene for these kinds of collectives.
Newcastle Film Club is a society of filmmakers founded by American filmmaker Samantha Castro and provides opportunities for aspiring filmmakers to collaborate with likeminded individuals. Castro moved to the North East in 2019 for personal reasons and had previously been involved in similar organisations in other parts of the world. But as she noticed the absence of a local film club in Newcastle, she took it upon herself to start one. She believes the people of the North East offer a unique 'will to help each other succeed' and also to tell 'regional stories' and bring forth 'underrepresented voices'.
While funding for their projects is a daily battle, the film club has no corporate overlord. There are no executives to adhere to or any real commercial interests to satisfy. As the organisation is a social enterprise, any profit is reinvested into their productions. Castro believes the community are therefore able to tell more intimate and personal stories, as there is not the same financial pressure to recoup investments through ticket sales. "When you give people the permission to go out and make what they want to make, you get unique voices," she said.
Photo: Peder Leufstedt Nyström. On set of The Great Reconnect.
Photo: Peder Leufstedt Nyström. On set of The Great Reconnect.
Photo: Peder Leufstedt Nyström. On set of The Great Reconnect
Photo: Peder Leufstedt Nyström. On set of The Great Reconnect
Photo: Peder Leufstedt Nyström. On set of The Great Reconnect
Photo: Peder Leufstedt Nyström. On set of The Great Reconnect
The United Kingdom possesses a unique filmmaking legacy that deserves more than extinction or mere survival. Without a flourishing independent film scene, the development of skills could stagnate, while underrepresented and regional voices become silenced in favour of blockbuster storytelling.
In order to maintain a sustainable talent pool and filmmaking ecosystem, it is vital for funds to trickle down to independent productions. While inward investments have been argued to bring business to the country, it is also evident that a danger lies in becoming overly reliant on foreign investments.
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