UK Budget: BBC World Service Gets Its Funding Boost As Film & TV Tax Reliefs Remain Untouched

The BBC World Service has been given its long-awaited funding boost in today’s UK budget, which contained no updates on film and TV tax credits.

While not announced by chancellor Rachel Reeves during her speech in the past hour, the small print in the UK’s budget document says: “In 2025-26, the settlement provides an increase in funding to the BBC World Service, protecting existing foreign language service provision and its mission to deliver globally trusted media, in support of the UK’s global presence and soft power.” The current settlement runs down in March.

The funding boost, the value of which has not been disclosed as of yet, comes out of the UK’s Foreign, Commonwealth and Development Office.

A BBC statement said the corporation “warmly welcomes” the additional funding, adding: “We are pleased the government has acknowledged the strong case for investing in the World Service. As the world’s most trusted broadcaster, we are in a unique position to lead the global news and information market.”

The statement added that the additional money could help with emergency information services in places like Gaza, Sudan and Ukraine, although countered that the World Service remains “not immune to the immense pressures facing the rest of the BBC.” Earlier this month, the BBC kickstarted a 130-person layoff program in its news division, axing a number of shows and changing the way in which it makes others.

BBC Director General Tim Davie has been pushing for more government funding for the World Service for a good while. Without more investment, he recently warned that Russia and China will fill gaps vacated by the near-100-year-old World Service with “unchallenged propaganda.”

The government previously funded the World Service entirely but stopped in 2014 and mainly gives grants for special projects along with some additional money. Last year’s budget amounted to around £369M ($480M), the majority of which came from the BBC license fee.

Tax reliefs untouched

The previous UK budget, the final one delivered by the Conservatives, brought in an indie movie tax relief of 40% for pics up to £15M budget, which has started paying out and was widely welcomed by the sector. But calls for a comedy tax relief, an unscripted rebate and to extend the high-end film and TV tax credit were not taken up this time around by Reeves, the UK’s first ever female chancellor.

One group desperate for help are the UK’s ailing film and TV freelance workforce, which has been hard hit by the slowdown and death of the “squeezed middle.”

Reeves today promised working people will “not see higher taxes in their payslips as a result of the choices I am making today.” But one indie source said the freelance community could be hit hard by an increase to employers’ national insurance contributions, which will impact those who are paid via their own personal service companies.

Paul Fleming, who runs actors union Equity, said: “Twenty years of cuts at every level have seriously undermined the sector’s potential.” He called for a roadmap to invest 0.5% of GDP in the UK’s creative industries, which could expand UK film and TV production and regulate AI, amongst other measures.

Low expectations

Prior to the budget, hopes for sweeteners in the film and TV world had been low. According to a Percy & Warren survey, 69% of respondents said they were not confident that the government’s budget would support the UK’s film and TV sector, with only 8% feeling confident in its potential benefits. Despite this caution, 54% of producers believe the industry will see growth in 2025 and 69% plan to invest in their growth for their companies next year, the survey added.

The budget is broadly seen to be one of the most important in decades in the UK. It was the first ever delivered by a female chancellor and comes as the Labour Party tries to rebuild Britain under its “decade of national renewal” banner. Labour has repeatedly said the Conservatives have left finances in a mess and has trailed tax-raising measures in recent weeks. It includes an industrial strategy, minimum wage hike and investment in clean energy.

“We must restore economic stability and turn the page on the last 14 years,” Reeves said today as she addressed parliament. “I’ve said there will be no return to austerity and that is the choice that I’ve made today.”

Conservative leader and former Prime Minister Rishi Sunak responded to Reeves for the final time in parliament. He will step down as Conservative leader over the weekend, replaced by either Kemi Badenoch or Robert Jenrick as that leadership contest draws to a close.