British film and TV show Not only does Covid cost the government $25 million and generate $2.8 billion for the economy, the report says

Britain’s Film & TV Production Restart Scheme (PRS) will ultimately cost the government just £20m ($25m) and bring more than £2.25bn ($2.8bn) to the country’s economy, according to an independent report, which analyzes its success .

According to the final figures published in the report, the £500m PRS will end up paying out less than £50m – less than a tenth of its original value – to growers who need insurance cover for Covid-19-related losses. The scheme, administered by the BFI and private insurers, raised £35.6 million in premiums. Taking administrative costs into account, this equates to a government deficit of £19.6m, the report said.

At the time of publication, the UK Department for Culture, Media and Sport had not yet responded to our request for comment on how much of the £50 million had been paid to the producers. In February, a Deadline investigation found that the PRS had paid just over half of the claims received, around £28m. We spoke to several manufacturers who have been waiting months for their claims.

The PRS, which has been held by several senior government ministers, including BBC chairman Richard Sharp, was forged in the summer of 2020 by then finance minister Rishi Sunak (now prime minister) to fill the gap created by ‘ a lack of available insurance. Producers will join the system before starting production, and if a problem hinders their production and results in additional costs, they can claim a refund.

Today’s report, produced by global analytics firm Nordicity and accountancy firm Saffery Champness LLP, says the plan has boosted the UK economy by £2.25bn by getting shows and films back into production.

It has created more than 100,000 jobs and supported more than 1,200 productions, including BAFTA nominees Brian & Charles, blue jeans And Good luck to you Leo Grandealong with high-end dramas Lord Jack, Peaky Blinders And Is dark material.

The PRS was “effective in all respects from an economic point of view,” according to the report, which claims that the overall benefit achieved is 115 times greater than the cost of delivery.

In particular, the PRS was used much more frequently by producers of high-end television (HETV) than films. According to the report, 52% of all HETV shows were registered with the PRS during the program’s two-year run, compared to 29% for films, representing 179 HETV programs and 87 films.

The most common genres to use the scheme were non-fiction and documentary series, accounting for around half in total, although these programs usually cost less than scripts.

The report says: “Across all production genres, the tremendous uptake of the program among HETV producers – both on an absolute basis and by market share – can be attributed to some of the key features of the coverage provided.”

After October 2021, when the premium for accessing the program rose from 1% to 2.5% of a project’s budget, PRS users dropped dramatically, the report added, describing the 2.5% as “unaffordable described, especially for smaller producers. “While the adoption rate of the system dropped sharply after the tariff increase, it can be seen as a positive result if production can continue without the system,” the report said.

A survey of program users found that 87% were satisfied with the impact on the company’s financial sustainability, while 66% said they created more innovative film and television content after joining. Just over half said it enabled them to “create content that generates sales and distribution outside the UK”, although just 36% said the program gave them the opportunity to “create content with a more diverse creative team.” to produce.

Today’s report, which comes a few months after the show ended, also indicated that broadcasters and producers were far more vulnerable than streamers due to the lack of Covid-19 insurance.

“Global SVODs entered the pandemic with existing general insurance policies that lasted several months or even years and covered COVID-19 risks,” she added. “For the global SVODs, once film and television production reopens in the UK or other jurisdictions, they can resume or begin filming.”

While broadcasters were able to increase viewership once the program went live, the report noted that publishers “did not necessarily point to the program as a key factor in maintaining engagement with the public.”

UK culture secretary Lucy Frazer said: “While the pandemic has threatened this success, we have stepped in to protect jobs, keep cameras rolling and ensure our producers can continue to produce the extraordinary content that Britain is known for. The film and television reboot program has protected productions that have supported jobs, contributed to our economy and entertained viewers around the world.” Frazer is now overseeing a review of UK broadcasting law, with streamers being regulated in line with the PSBs for the first time.

With the program wrapped up, British TV and film producers were disappointed with a small real increase of 0.5% to the country’s hugely popular tax credit implemented in last month’s budget. Producers had hoped for a much larger increase to cushion rising budgets.