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So, What Will Take The Place Of UKFC?

James Lee, former chairman of Scottish film agency Scottish Screen, has written to UK culture secretary Jeremy Hunt proposing all £15 million of lottery funding be injected into a single distribution label. BBC Films and Film4 would be obliged to release all their films through this “British National Distribution Company.” Indie producers would then apply to have their films fully financed. This is a revival of an old idea. Back in the late 90s, a government report recommended that all lottery funding be spent on a distribution-led studio aping the Hollywood model. Fine in theory but the government immediately saw the impossibility of using public money to fund a commercial rival to existing film companies. John Woodward, current CEO of the Film Council, was one of those who shot the idea down. Woodward, then CEO of UK producers’ lobbyist Pact, realised that the Middleton Report proposal would leave too many of his producer members hungry for cash.

Michael Grade has also weighed in to the UK Film Council debate, suggesting producers get to be the ones distributing lottery funds. “Could we introduce a system whereby internationally established UK producers, who have had success in both commercial and cultural terms, play a role in distributing lottery funds?” Grade wrote in the Times of London. “Surely they are more likely to pick winners than the bureaucrats.” But wait, the government has already … Read More »

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Government Mulls Handing Over $19M Lottery Money To Arts Council Of England

UPDATE: UK culture minister Jeremy Hunt and arts minister Ed Vaizey have rowed back transferring the £15 million ($19 million) lottery film cash to the British Film Institute. Nor are they going to ask BBC Films and Film4 to split the money between them. I’m told that BBC Films has reacted “with horror” at the prospect of controlling the lottery cash. The BBC’s film department may make the same kind of features as the UK Film Council, but getting hold of that money could see its own £12 million funding being cut.

The irony is that it was the Arts Council of England’s original bungling of the lottery film cash that partly led to the UKFC being established. In the late 90s, producers were crying out for proper industry executives to award production funding, not a committee of well-meaning amateurs. Now it looks like we’re going full circle. “Once it finds out what’s going on, the whole industry will start laughing and then start crying,” says my source.

Tim Bevan, co-chair of Working Title, and UKFC chief executive John Woodward met Vaizey and Hunt this afternoon at 2:30pm (6:30am PST).

Liam Neeson, meanwhile, has weighed in to the controversy, calling the government’s decision “deplorable”. Neeson told the BBC: “We need movies. It’s a powerful industry that provides a credible entertainment for millions of people and I think it is wrong, I just think it is wrong for the government [to do this]. I … Read More »

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UK Film Council Closure Polarizes Industry

UPDATE: Reactions to the UK government closing down the £60 million-a-year ($94 million) state film agency have formed into two distinct camps.

Many producers I’ve spoken to say the UK Film Council never did anything for them and will not be missed. Sure, they’ve had dribs and drabs of funding but they’ve been excluded from what they perceive as the charmed inner circle. The UKFC’s headcount is still 75 despite the recent 20% slash in its overhead. “A handful dealt with film financing,” one producer tells me. “It was never clear what the rest did.”

Indeed, it may be that the UKFC closure increases the amount of cash available for production. The agency had been spending 23% of the £38.5 million lottery funding it was receiving on overhead. This compares with 13-14% at other UK screen agencies Scottish Screen and Film Agency For Wales. UKFC had worked up a plan to get its lottery overhead down to under 5% before the plug was pulled.

And the amount paid UKFC executives is another bugbear. The government recently disclosed that four of the organisation’s executives had been earning more than £150,000 a year. Tanya Seghatchian, the new film fund head, had an annual salary of £165,000 – although this has since been reduced — the argument being that the state must match what executives could earn in the private sector. But it’s not as if the industry’s crying out for development executives, say producers – … Read More »

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BLIMEY! British Government May Give $19M Lottery Cash To BBC Films And Film4

EXCLUSIVE: The UK government is considering handing over the £15 million of lottery film production cash, which the UK Film Council currently handles, to public broadcasters the BBC and Channel 4. Ed Vaizey, the government arts minister, has talked about splitting the UKFC’s £15 million of lottery funding only recently. He argues that both broadcasters both fund the same kind of films. One UKFC insider I spoke to today described this as an “appallingly dumb” idea. “It may have come up now they are desperately scrabbling around for something to do with film money,” this insider tells me.

Even if BBC Films and Film4 go with the plan – and both complain that they’ve long been starved of funds – what’s to stop Auntie BBC and Channel 4 from just cutting their annual budgets as a result? BBC Films currently receives £12 million a year, while Channel 4 has just had its budget increased to £10 million annually. Producers would also likely howl as it further reduces the number of gatekeepers from three to two.

Department for Culture, Media and Sport tells me nothing has been decided yet. A detailed implementation plan will be worked out over the summer. But DCMS is considering options to transfer these funds to other existing bodies. There’s been talk of the British Film Institute handling the lottery production cash through an arm’s length commercial body — much like the arrangement BBC has with BBC Worldwide. I’m … Read More »

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