BRITISH FILM INSTITUTE GROUP AND LOTTERY ANNUAL REPORT AND FINANCIAL STATEMENTS 2017–2018 HC 1310 SG/2018/107 British Film Institute Group and Lottery Annual Report and Financial Statements for the year ended 31 March 2018 Presented to Parliament pursuant to Section 34(3) and 35(5) of the National Lottery etc. Act 1993 (as amended by the National Lottery Act 1998 and the National Lottery Act 2006). Ordered By The House Of Commons To Be Printed 19 July 2018 Presented to the Scottish Parliament pursuant to the Scotland Act 1998 Section 88 Charity Registration no: 287780 © British Film Institute copyright 2018 The text of this document (this excludes, where present, the Royal Arms and all departmental or agency logos) may be reproduced free of charge in any format or medium provided that it is reproduced accurately and not in a misleading context. The material must be acknowledged as British Film Institute copyright and the document title specified. Where third party material has been identified, permission from the respective copyright holder must be sought. Any enquiries related to this publication should be sent to us at [email protected]. This publication is available at https://www.gov.uk/ government/publications ISBN 978-1-5286-0595-3 CCS0618938184 Printed on paper containing 75% recycled fibre content minimum CONTENTS BFI Annual Report 7 Chair and Chief Executive’s Report 9 What we delivered this year 23 Public Policy, Research and Statistics, Leadership and Advocacy 27 Fundraising and Philanthropy 33 Performance 35 Financial Review 38 Public Benefit 39 Environmental Sustainability 40 How the BFI is Governed 47 Remuneration and Staff Report 54 Corporate Information 55 Statement of Governors and Accounting Officer’s Responsibilities 56 Governance Statement BFI Group and Charity Financial Statements 61 The Auditor’s Report to the Governors of the British Film Institute 64 BFI Group and Charity Financial Statements Lottery Financial Statements 92 Statement of Governors and Accounting Officer’s Responsibilities 93 The Certificate and Report of the Comptroller and Auditor General to The Houses of Parliament 96 Lottery Financial Statements 117 Schedule 1: New Lottery Commitments 122 Schedule 2: New Lottery Commitments made by Delegate Bodies 124 Statutory Background 6 Chair and Chief Executive’s Report This annual report covers the first year in our new talent development executives through the BFI Film strategy BFI2022. It is a strategy designed to build Audience Network, providing greater access and on the strengths of Film Forever, and was shaped support for talented emerging filmmakers in key by all that we have heard during an informative UK- cultural film hubs across England, complementing wide consultation. programmes already established in Scotland, Wales and Northern Ireland. BFI2022 rises to embrace and support the fast- evolving technological creative arena and new It has been rewarding this year to see so many post-referendum opportunities and challenges. filmmakers in receipt of National Lottery funding We focus on the future of this great art form with: through the BFI Film Fund being recognised for a wider interpretation of film to cover new forms; their work. This includes outstanding debuts by a sustained commitment to diversity; and new Rungano Nyoni (I Am Not A Witch), Francis Lee initiatives that devolve more decision-making and (God’s Own Country) and William Oldroyd and Alice funding to create greater opportunity across the Birch (Lady Macbeth), along with Lynne Ramsay English regions and the Nations. achieving great acclaim in Cannes for her prize- winning You Were Never Really Here. BFI2022 is arranged in four sections: Future Audiences, Future Talent, Future Learning and Skills It has been a bumper year for film overall in the UK, and Leadership, and steady progress has been with production in 2017 reaching a new high of £1.9 made against all the pledges. billion, and it is important to recognise the winning combination of a competitive fiscal environment Future-proofing a creative endeavour depends on provided through the UK film tax incentive, the bringing through the next generation, a generation excellence of craft and crew, professional expertise that is confident and knowledgeable and inspired in our infrastructure, and the pure exhilaration of by its cultural foundations. This year, the BFI has creative innovation. Together with the essential bristled with globally inspired programmes of film, service support from many of our partner agencies delivered across all our platforms and with partners such as the British Film Commission and Creative across the world. Examples of such programmes England and the national agencies who look after have included a tie-in with the national celebration production services, it is a winning combination of India, a much-fêted celebration of the work of that reaps massive and growing economic benefit Ingmar Bergman, and a nationwide look at ‘Thriller’ for the UK. as a genre on the big and small screen. One of the strengths of the BFI cultural programme is Nevertheless, we identified in BFI2022 a concern its inventive capability of accenting inclusion and for the future competitiveness and creative value of diversity. Examples included a year-long focus on British independent filmmaking in this fast evolving re-positioning the role of women in the history of and complex digital arena, where traditional film, and a much talked about celebration of the business models are in constant flux. We have Woodfall films with their focus on working class responded and, as promised, launched a bespoke heroes. commission, headed by Zygi Kamasa, CEO of Lionsgate UK and Europe, with members from We have adapted our funding criteria to support across the value chain. The commission will report work across different platforms, encouraging later in 2018. creative filmmaking that expands the possibilities of storytelling and form. As part of our expanding Diversity and inclusion are at the heart of our BFI NETWORK, we have appointed six regional strategy, with the desire to create new opportunities 7 for thousands of individuals from all backgrounds. (the Screen Sectors’ Taskforce) to examine the The launch of Future Film Skills, a 10 Point action economic and cultural impact of leaving the EU plan, has delivered on a key commitment in and is working closely with Government to ensure BFI2022 to address emerging skills shortages and the best possible outcome for the UK screen to make it easier for people to enter the industry. sector from the EU Exit. Of equal importance We were delighted to award a significant five-year is the strength of our networks in Europe and contract to Creative Skillset, after an impressive bid, beyond, and much energy has been committed to to deliver this very important, industry-backed skills maintaining our presence in key European forums. strategy that will help to future-proof continued The Government’s announcement of its industrial growth in the UK’s flourishing film sector. strategy, with the creative industries selected for Following the exposure of some unsavoury an ‘early sector deal’, was a vote of confidence in practices in the industry, we led on an immediate the ability of creative businesses to drive growth response in partnership with BAFTA and the and create jobs across the whole of the UK. Cinema and Television Benevolent Fund (CTBF) Through our membership of the Creative Industries to create a set of principles against bullying and Council and the Creative Industries Federation, we harassment which were adopted by over 40 have worked hard to ensure that new measures film-related organisations and embedded in our to support the success story of British film are Diversity Standards. We also introduced clear, reflected in the Government’s industrial strategy. reportable targets for inclusion across key activities. We look forward to 2018-19 with a Comprehensive Ensuring that education to tackle these issues is Spending Review that allows us to present a fresh available from an early age, we were glad to enlist and ambitious future vision for the BFI and the film the expertise of our partner Into Film who now industry. We are thinking radically about the future, reach into around 10,000 schools through their film how we can continue to present the ambition we clubs and social media activity. have for film and the wider moving image, and After several years of painstaking research, we how we can position ourselves financially to better were proud to launch the largest public searchable, support the wider screen environment heralded in interactive database dedicated to British feature our strategy. films released in the UK. This includes over 100 The Annual Report is an important moment to years of data on the nearly 10,000 film titles recognise the amazing and dedicated work of our (growing weekly) released. Looking at gender data staff whose depth of expertise, curiosity to learn reflected in the database revealed some stark and and commitment to sharing their love of film is the uncomfortable realities about the scale of change real power behind the BFI. They are, of course, led needed. The data is also a rich source of material by a highly knowledgeable and committed Board for policy makers seeking to understand the value of Governors who bring support, guidance and and impact of policy interventions. We are the first wisdom throughout the year. country in Europe (possibly the world) to have this level of data about our own indigenous industry. The challenges and opportunities of leaving the European Union, alongside the Government’s industrial strategy, dominated our policy and Josh Berger CBE Amanda Nevill CBE advocacy work during the year. The BFI continues Chair Chief Executive to draw on the expertise of a cross industry group 12 July 2018 8 WHAT WE DELIVERED THIS YEAR Future Audiences Great filmmaking for audiences everywhere Delivering great films to audiences across the UK A rich cultural programme in India online and extensively in the media resulting in over half-a-million views on YouTube and BFI We believe that everyone, everywhere in the UK Player in a single three month period.