Is the influx of Hollywood money boosting or breaking the UK film industry?

Hollywood cash has fuelled a record-breaking recovery for UK film and TV production, but beneath the headline figures, independent producers, freelancers, and local cinemas say they are struggling.

This article is part of my ‘Big Ideas’ series, in which I explore the evolving landscape of the film industry. Each instalment will focus on one of the key shifts highlighted below, digging deeper into how they could reshape cinema over the next decade.

These pieces combine research, analysis, and forward-thinking insights for film professionals looking to stay ahead in a turbulent market.

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The UK film and TV industry is experiencing a record-breaking boom, with production spending reaching new heights. Hollywood’s investment has played a central role in this surge, driving billions into the sector and fuelling major studio expansions.

Yet beneath these headline figures, the influx of American money is exposing deep cracks in the UK’s filmmaking ecosystem.

There are currently a number of urgent questions the UK film industry needs to answer about the future of homegrown filmmaking, job security, and the long-term sustainability of independent cinema in the UK.

Here’s a summary, and then I’ll go through each in more detail:

1. Hollywood spending is driving a record UK production boom. Major inward investment has pushed UK film and TV production spending to £5.6 billion in 2024, recovering sharply from the previous year’s strike-related slump.

2. Independent productions are struggling to compete. Despite record spending, UK independent producers face shrinking budgets, fewer opportunities, and rising costs, with Hollywood-backed projects accounting for up to 90% of total investment.

3. Freelancers and crew face instability despite the growth. High spending on big-budget productions hasn’t translated into steady employment, as irregular schedules and specialised hiring practices leave many UK crew members underemployed.

4. The UK is expanding its studio infrastructure. New studio spaces are opening at Pinewood, Shepperton, and Leavesden. Expansions at existing sites and a new tax incentive for studio facilities show confidence in long-term production demand.

5. Independent cinemas are still in trouble. While blockbusters like Barbie have boosted box office figures, independent cinemas are struggling with declining attendance, rising costs, and limited financial support.

6. Public funding is stretched thin. Cuts to BFI, BBC Film, and Film4 funding, alongside the loss of EU support, have made it harder for smaller productions to secure financing, increasing reliance on streamers and private investment.

7. The government is under pressure to intervene. Industry bodies are calling for stronger tax breaks, streamer levies, and direct public funding to support UK filmmakers, with a parliamentary inquiry underway to assess long-term solutions.

8. Brexit is still hurting the industry. Funding shortfalls, co-production barriers, and reduced access to European markets continue to challenge UK producers, with the UK Global Screen Fund falling short of replacing lost EU funding.

Let’s go through each of these in a little more detail:

1. Hollywood spending is driving a record UK production boom.

Hollywood’s investment has pushed UK film and high-end TV production to record levels, with spending reaching £5.6 billion in 2024. This marks a sharp 31% increase from the previous year, when strikes in the States disrupted production schedules.

Although this resurgence brings the industry closer to pre-pandemic highs, total spending remains slightly below the £6.27 billion recorded in 2022. Most of this recovery comes from international investment, with major studios and global streaming platforms driving the rebound through large-scale productions.

High-end TV accounts for the largest share of spending, reaching nearly £3.4 billion. This represents an increase of between 17% and 20% compared to 2023. Film production also experienced significant growth, rising 56% to approximately £2.1 billion.

Much of this increase has been fuelled by investment from international companies, particularly Netflix-backed films and major studio franchises from America. While these figures point to a strong recovery, the dominance of Hollywood funding raises concerns about the future of UK-led productions and the long-term stability of the local industry.

2. Independent productions are struggling to compete.

Despite record-breaking production spending, UK independent producers are finding it increasingly difficult to compete.

Hollywood-backed projects now account for 87% of total production spending on movies in the UK, and 82% of high-end TV spend. The number of UK-led films and high-end TV shows has declined, with many struggling to secure financing in an industry that prioritises big-budget, internationally funded content.

As a result, independent producers face shrinking budgets, fewer greenlights, and greater financial risk when trying to get their projects off the ground.

Rising costs have added further pressure. Inflation, increased wages, and higher production expenses mean independent filmmakers must stretch their limited resources further than ever before. Some producers are deferring their own fees or relying on multiple smaller funding sources to keep projects afloat.

Even the ‘good news’ feels underwhelming. British independent films doubled their theatrical market share in 2024… but only from 3.8% in 2023 to just 6.9%.

The UK government has introduced tax incentives to support independent filmmaking, but many in the industry argue that these measures are not enough to reverse the decline. Without stronger financial backing, independent films risk being squeezed out of the market, making it harder for new talent to break through.