UK Film Council Annual Report and Accounts 2003-2004 Part 1

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UK Film Council Annual Report and Accounts 2003-2004 Part 1 Intro_2004_14.qxd 19/11/04 2:32 pm Page 3 (formerly Film Council) Group and Lottery Annual Report and Financial Statements for the year ended 31 March 2004 Company no: 3815052 Intro_2004_14.qxd 19/11/04 2:32 pm Page 4 Contents Chairman’s foreword Chairman’s foreword ................................................................................................................. 5 Welcome to our fourth annual report of the UK Film Council. policy objectives for the UK film industry and for UK film culture and education over Chief Executive Officer’s review ................................................................................................ 6 The Board of Directors spent a good deal of time during the next few years. the year looking forward, formulating our second strategic Summary of activity ................................................................................................................... 9 plan which sets the compass for our activities over the During the year, we unveiled a new strategy in next three years. The plan builds on the priorities set partnership with Skillset for developing the film The role of the UK Film Council ............................................................................................... 10 out at our inception, seeking to consolidate what we’ve workforce backed with serious investment; saw already achieved – for example, through continuing direct a fundamental review of the British Film Institute; Diversity and inclusion .............................................................................................................. 10 support for script development and film production – worked with industry and Government to secure a while developing the basis for new and expanded policy new tax mechanism for film; and implemented a radical Nations and regions .................................................................................................................. 11 interventions. These include policies that address the support scheme for the distribution of specialised films. increasing problem of film piracy, that help us deliver Culture and education .............................................................................................................. 11 on our commitment to cultural diversity and inclusion, However, a great deal more remains to be done and that will help enhance media literacy among the UK to maximise the potential of UK film at home and Skills training ............................................................................................................................ 12 population as a whole. around the world. As I said in my presentation at BAFTA in November 2002, the UK Film Council exists to serve Developing better scripts .......................................................................................................... 13 The development of strategy is, of course, informed by our industry and to advise Government. But we can’t be an analysis of the current performance of the UK film the industry, or define film culture: the UK Film Council Film production ........................................................................................................................ 13 industry and the impact of UK film culture. That is one exists only to encourage an environment in which reason why the statistics produced by our Research and industry and culture can flourish and thrive. First Light – young people making movies ................................................................................ 15 Statistics Unit are so invaluable. Over the next four years, therefore, the task of Stewart Supporting quality, popular films............................................................................................... 15 The statistics are also a crucial tool in enabling those Till CBE, the new Chair, and the entire Board will be to within the industry and working in film culture and build upon what we’ve already achieved and I wish The production franchises ......................................................................................................... 16 education to plan and develop their business and them every success. I think it is true to say that whilst policies. The provision of these statistics is an excellent the funding landscape is clearer and more equitable Distribution and exhibition ....................................................................................................... 17 example of the way in which the UK Film Council is than ever before, the real prize – closer integration now delivering significantly enhanced value to its across the industry, and in particular, stronger lines The UK’s position as an international business ‘hub’ ................................................................. 17 external stakeholders. between the finance, production and distribution sectors – is still to be won. The USA .................................................................................................................................... 18 This is the last introduction I shall be writing to this publication. And by the time it is published, I shall have For the moment the ‘cottage industry’ of production still Europe ...................................................................................................................................... 18 retired from the Board after five years as UK Film Council prevails and until that structure changes there will always chair. I look back with considerable pride on what we be a need for a UK Film Council to stimulate change and Film export promotion and international marketing ................................................................. 19 have achieved in a relatively short space of time and I’m to challenge the industry to raise its game. extremely grateful for the work put in by all my fellow Monitoring and evaluation ..................................................................................................... 20 Board members and by the UK Film Council staff – effort that has paid real dividends. Operating and financial review .............................................................................................. 21 We have brought structural coherence to the landscape Employment statistics ............................................................................................................. 24 of policy and public funding for UK film – something ___________________________________ that was clearly absent when we began our work. We Sir Alan Parker CBE Group Annual Report and financial statements ..................................................................... 26 have made targeted and effective interventions in Chairman virtually every part of the film sector from developing 30 July 2004 Lottery Annual Report and financial statements .................................................................. 70 new creative talent through to cinema exhibition. And we have laid out a clear path for the delivery of public Statutory background ........................................................................................................... 116 4 GROUP AND LOTTERY ANNUAL REPORT AND FINANCIAL STATEMENTS 2003/04 GROUP AND LOTTERY ANNUAL REPORT AND FINANCIAL STATEMENTS 2003/04 5 Intro_2004_14.qxd 19/11/04 2:32 pm Page 6 Chief Executive Officer’s review As this publication goes to print, we are releasing promote the production of lower budget British films However, supporting film production is only one way Offering opportunities for people to learn more about our second three–year strategic plan (available at and to complement the ongoing Section 42 incentive of helping to achieve our objectives, where success film in a variety of ways and environments is also central www.ukfilmcouncil.org.uk) which sets out the that attracts bigger, mainly US studio-backed, British will not be determined solely by investing relatively to developing film in the UK. Our key strategic partner funding and policy priorities for the UK Film films into the UK. That case was made effectively during small amounts of public money. Three big problems, in achieving these goals is the British Film Institute (bfi), Council for the next three years (2004 to 2007). 2003 with the result being the announcement of a new which have held back the development of the UK film which announced in 2004 the results of a strategic tax credit to support indigenous UK film productions industry, were outlined by our Chairman, Sir Alan review, setting out how the organisation will become During our first three years (2000/03), we totally which will pass into law during 2004/05. Parker CBE, at the end of 2002. Put simply, these more outward-looking and work in partnership with restructured the way that public funding is invested in are to improve the effective distribution of UK films, others in order to promote film appreciation and to a range of film initiatives, including script development, The Government has also noted a structural disconnection at home and abroad; to create a favourable operating broaden the availability of our television and film film production, and the development of film in the between the production and distribution sectors which environment for the UK film industry (including fiscal culture and heritage. English regions. That first stage of our work has been continues to inhibit industry growth. Discussions aimed incentives and a more strategic approach to co-production); successfully completed so now
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