Government cuts funding to BFI Film Centre

Plans for a new BFI Film Centre on London’s Southbank were dealt a huge blow yesterday, as the Department for Culture, Media and Sport announced they were withdrawing the £45 million funding originally promised by the previous government. The cut is part of £73million of savings announced by the DCMS as further contribution to reducing the national deficit.

Ed Vaizey, Minister for the Creative Industries, conceded that the withdrawal was “obviously disappointing”, but said in a statement, “I want to make sure that we are supporting the film industry so that it is ready for the challenges it will face in the decade to come, and that we make sure every pound of public money we spend gives the maximum benefit.”

The BFI had announced its intentions of building the Centre last year, with plans for five cinema screens, spaces for exhibitions and research facilities at a cost of £166 million in total. The organisation released a statement yesterday saying the cut had been anticipated, and that it was committed to continuing the project.

A further £2.5 million is also being removed by the DCMS from a BFI project to improve digital access to its extensive archive. But the government will still fund the creation of a new film store to safeguard the National Film Archive.

The BFI said it was "relieved that vital monies to save the BFI National Collections are secure”, but was concerned that film was "bearing the brunt" of the cuts. "Over 50% of the department's cuts that have been announced are coming from film”, according to the organisation.

It was also revealed that Ed Vaizey will undertake a reassessment of government support for film, including the impact of National Lottery funding and film tax relief, although it is understood that neither will be affected financially by this.


Roger Michell, Chair of Directors UK Film Group commented: “We deeply regret the cuts that have been announced, but understand that the Arts in general, and Film in particular, cannot be exempted from the forthcoming onslaught upon public spending. However, as a major new report published by Oxford Economics last week makes abundantly clear, the UK film industry contributes a total of over £4.5 billion a year to UK GDP and more than £1.2 billion to the exchequer, and that, crucially, every £1 invested through the Tax Credit system generates an extra £13 in GDP."

"As Ed Vaizey commented at the time, "this report is evidence of how important British film is - to our economy as well as promoting our cultural life, our identity and diversity on the international stage", and we trust that he will be mindful of these conclusions when making his assessment of our industry and particularly the tax credit. We need and expect him to be a strong and compelling voice on our behalf in Cabinet and at the Treasury.”

To read more from the DCMS, click here, and here to read the BFI statement.