15th July 2025

Written by Johan Ewing.

Film and television production in the UK has been a success story built over decades and, despite various risks and challenges, the production industry continues to be a vibrant, essential part of the UK economy. Recently, published figures revealed that UK production spend on feature films nearly tripled in the first quarter of 2025 as compared to the same period in 2024.

There have been numerous extraneous threat to the UK’s production prowess, including COVID, the US union strikes and the concern over Donald Trump’s plans to impose tariffs on “foreign” films which is clearly aimed at supporting a return to the golden days of a dominant US/California film production hub. One can never rule out some form of tariffs coming into play under the current administration, although increased US tax incentives and US co-production deals may seem a likely and sensible outcome. In any event, key players in the industry are not dwelling on this until further details have been made clear.

Individuals and companies in the sector have proven themselves to be highly adaptable to the demands of the market, as well as to macro-economic fluctuations from outside the market and so we are confident that they will find a way to adapt, grow and thrive, whatever is around the corner.

One would need more than a pithy note bashed out on a lazy Sunday afternoon in London to properly get into the details of the UK production industry, how it works and what makes it tick, but with a bout of Summer optimism and following this year’s Cannes Film Festival, I felt it apt to muse on the recent successes of the UK film and television industry.

The UK has been a popular production hub for many years, but why is it that an increasing number of overseas productions elect to come to our occasionally sunny shores?

It is important to appreciate the distinction between high budget studio productions being produced in the UK as against the UK’s independent production sector. The biggest blockbusters continue to be produced in the UK, with Avengers Doomsday reportedly starting production recently and The Rings of Power moving to the UK for series 2 and 3. Equally, there are a huge number of smaller independent productions outside the studio blockbusters which are not financed by the studios and streamers but are also essential for the good health and success of the industry and have continues to thrive notwithstanding the threats which have been discussed by my fellow Partner Alastair Mavor here.

The UK’s strength as a production hub across both the studio and indie sector is reflected in a significant increase in spend across Q1 this year, although 94% of feature film production spend in the first quarter of 2025 was inward investment, as distinct from local UK productions, showing how critical the UK is as both a production hub and production location.

Below I have outlined a few of the UK’s attributes for production work.

Tax Credits

The UK Tax Credit is renowned as being clear, reliable, and predictable. Recent substantial increases to the amount of available tax rebates have only served to further support its value to both UK productions and international co-productions. There is plenty of detailed material on both the AVEC and IFTA UK tax incentives which I won’t repeat here, but which we would be happy to send over on request.

Co-Productions

Geographically and culturally, the UK is a perfect link between the world-leading US market and our co-production partners from Europe and beyond. Co-Productions between the UK and other partners under a series of international treaties and the European Convention is a big and ever-growing area of production, allowing producers and overseas financiers to reap the benefits of the UK and other co-producing territory rebates.

There are numerous recent success stories, such as Zone of Interest, The Brutalist and The End (all advised by L&T) along with upcoming projects creating a buzz like Cliffhanger 2 and Sacrifice (all advised on by L&T). There co-productions are often with European partners, but also with partners further afield such as Australia, New Zealand and Canada, all of whom are common participants with complimentary strengths.

While co-productions can be complicated to coordinate, the rewards can be huge financially, logistically and creatively. In addition to attracting differing tax rebates across different territories, co-productions can also help a production secure better distribution terms in the relevant co-producing territories.

Natural Strengths

The UK is also home to top producing and creative talent – with too many to pragmatically list – as has been exemplified by recent homegrown productions which have made a significant global impact, with Adolescence being of particular note recently given the records set internationally and in the UK. Recently released Havoc was the highest budget production ever shot entirely in Wales. We Live in Time has been hugely successful in theatres and subsequently on streaming platforms (Adolescence, Havoc and We Live in Time all advised on by L&T).

Add to this great international transport links, high quality facilities and locations, top tier HODs and crew, a common language with the US and a common history with Europe and these articles really start to write themselves without even needing to send prompts to AI.

In short, whether you live in the UK or not, it’s pretty much the best place to spend money on producing films or television series, if it fits the creative requirements.

Navigating the commercial, legal, and practical aspects of productions can be complex, but with the right advice it can become a strategic advantage. Using trusted advisors to bridge commercial relationships with US funding, talent, and distribution is a key part of catalysing these productions to succeed, as is having expert advice from the start to navigate treaty (or “official”) co-production requirements, particularly with finance and rights structures.

If you are exploring options and would like to discuss how the UK and Europe might fit into your plans, please contact a member of our film and television team.