Barriers to Diversity in Film – A Research Review – Aug 07

included films in 30 different languages (UK Statistical Yearbook
2006-07). Hindi was the dominant foreign language in terms of
numbers of releases though only 7% of screens were dedicated to
‘specialised’ programming, with 0.5% showing South Asian films.
Policy interventions to increase screenings of foreign language films
are discussed in Chapter 6 on recommendations.
2.3 Funding for film
2.3.1 Government support and other funding sources
The film industry remains a sector vulnerable to funding fluctuations.
It is recognised that government intervention is important for
sustaining production of ‘culturally British’ films and that the industry
cannot be left to market forces alone (HM Treasury 2005). Government
support for the British film industry was clarified in the 2005 Budget,
when the Chancellor of the Exchequer announced tax incentives to
promote the sustainable production of ‘culturally British’ films (HM
Treasury 2005). The new tax relief is based on an enhanced deduction
from taxable income for film production companies that can be
converted into a payable tax credit. For UK films with production
budgets up to £20 million, the value of the relief increases to a
maximum of 20% of production costs where 80% or more of the
budget is spent in the UK. For UK films with production budgets of
£20 million and over, the maximum value is 16%. (UK Film Council
Statistical Yearbook, 2006-07). At the same time, the UK has
attempted to place film at the service of broader social objectives,
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