New Producers’ Guide to UK Film Finance

23 February 10

On Tuesday 23 February, key players in UK Film Finance sector joined BAFTA talk through the current landscape for independent feature film financing in the UK.

Speakers included Luke Randolph (Director, IFG Limited), Abigail Payne (Partner, Harbottle & Lewi), Paul Brett (Director, Prescience Film Finance), Finola Dwyer (Producer and BAFTA Film Committee Chair) and Mike Kelly (Founder, Northern Alliance Ltd).

For a copy of Abigail Payne’s presentation click here (723 KB)

New producer Bennett McGhee reports on the event

Despite the reduction of the UKFC's overall budget, the clampdown on some of the more abused tax initiatives, the impact of the economic downturn (almost all of the studios' indie labels have been disbanded; venture capital for films has retracted) Abigail Morris, a partner at Harbottle & Lewis, gives reasons to be optimistic.

For starters, the politicians are onside. Both the Conservative and Labour parties have pledged to keep the UK tax credit (currently worth 20%) and the House of Lords Committee has recommended that this be increased to 30% on films with a budget of £5m or less. On this basis, the tax credit looks set to stay.

While the UKFC's budget has been reduced from £17m to £15m per year, the actual amounts spent on UKFC overheads will be reduced and thus more should be given to filmmakers. What's more, post-Olympics, the budget will be returned to £17m annually.

Abigail also suggested a number of financing mechanisms and companies as possible options for financing a film. These included EIS, gap and tax financiers and the broadcasters. While the number of places to go for film finance isn't limitless, this wasn't a fully comprehensive list of financiers in the UK, so do your research.

Some money is more valuable than others, it seems...

However, the real gems of advice were not the lists of institutions you could approach for funding, but the manner in which you make your approach. All the panellists emphasised that it's the quality of the script, the package and the business plan that will ultimately help a film get financed. A well thought-out finance plan, a tailored festival strategy and a very strong idea of the target markets and audience are essential. It was surprising to hear how often financiers receive pitches that are little more than a logline and an under-developed screenplay.

There was also a word of caution. Some money is more valuable than others, it seems. The quality of the finance is a great phrase new producers would do well to remember.

Money from an industry savvy, experienced player is likely to be more valuable (in terms of securing the remainder of the finance), fairer and more legally sound, than say, from a non-industry, inexperienced source whose terms and conditions may not be as reasonable. Of them all, finance from the major broadcasters was deemed quality finance as in return for their stake they require only UK TV rights, thus leaving you with worldwide theatrical and all other ancillary rights to trade with other financiers.

Of course, eventually, you may have to take whatever is on offer, wherever it comes from, if you're determined to get your project off the ground. But before it comes to that, get your script in shape, attach the best talent available, perfect your business plan and line up your financiers.

This event was supported by Sargent Disc.

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