The UK film and television industry is navigating a complex landscape in 2025, marked by a surge in major Hollywood productions alongside a steep decline in domestic and international local projects. While inward investment blockbusters like Avengers and Harry Potter spin-offs fuel record spending and job creation, local high-end TV commissions and co-productions have plunged, exposing a “feast or famine” challenge that threatens the sector’s long-term sustainability.
Hollywood Blockbusters Drive UK Production Boom
Record Production Spending and Film Starts
In the first quarter of 2025, UK production spending nearly tripled compared to the same period in 2024, soaring to £632 million from £211 million, marking the third highest Q1 spend since records began in 2003. This surge was driven predominantly by inward investment films, which accounted for 94% (£592 million) of the total film production spend.
During this period, 37 films began principal photography, 15 more than in Q1 2024, including high-profile productions such as Warner Bros’ Supergirl: Woman Of Tomorrow, Wuthering Heights directed by Emerald Fennell, Steven Soderbergh’s The Christophers, and Amazon MGM Studios’ Masters Of The Universe.
Expanding Market Value and Workforce Demand
Industry forecasts project that film and high-end television (HETV) production in the UK will grow from £5.64 billion in 2021 to between £7.07 billion and £7.66 billion by 2025, representing an average annual growth rate of 7.3%. This expansion is expected to generate the equivalent of 122,000 full-time jobs currently, with an additional 15,130 to 20,770 full-time crew members needed by 2025 to meet rising demand.
To support this growth, nearly 2.7 million square feet of new stage space is slated to come online by 2025, addressing current physical constraints on studio capacity. The British Film Commission has also launched a Stage Space Support and Development strategy aimed at doubling studio space to alleviate bottlenecks.
Local Film and TV Production Faces Sharp Decline
Significant Drops in Domestic Commissions
Contrasting the inward investment boom, UK domestic high-end television commissions fell precipitously by 22% in 2024, accompanied by a 50% decrease in international co-productions. The total number of films and high-end TV shows produced in the UK in 2024 was 372—30% fewer than in 2023 and even less than in 2020, a year heavily impacted by the pandemic.
This stark decline in local production activity threatens the diversity and resilience of the UK’s creative industries, raising concerns about the sustainability of the sector beyond blockbuster-driven growth.
Industry Reactions: “Feast or Famine” Reality
Industry insiders describe the current scenario as a “feast or famine” situation, where the influx of big-budget Hollywood projects creates high demand for skilled workers and infrastructure, but local productions struggle to secure funding and commissions. This duality risks creating a skills gap and workforce shortages if training and recruitment do not keep pace.
Urgent Need for Skills Training and Investment
Workforce Shortages and Training Costs
A detailed report by ScreenSkills, commissioned from consultancy Nordicity and accountancy firm Saffery Champness LLP, estimates that to sustain the growth trajectory, the UK film and HETV sector will require an annual training investment between £95.1 million and £104.3 million by 2025. This funding would support both existing workers and the recruitment of up to 21,000 additional full-time crew members needed to meet production demands.
The report highlights a compelling economic return on this investment, estimating that spending £289.3 million on training from 2023 to 2025 could generate an additional £4.56 billion in gross value added (GVA) across the UK economy—more than 15 times the cost of training.
Infrastructure Expansion Plans
To accommodate the booming production schedules, nearly 2.7 million square feet of new studio and stage space is expected to be operational by 2025, a critical expansion given the current shortage of suitable facilities. This infrastructure growth is essential to prevent capacity bottlenecks that could stifle further industry growth.
Broader Industry Context and Future Outlook
Tax Reliefs and Post-Pandemic Recovery
The UK’s film and TV sector growth has been bolstered by the High-End Television (HETV) Tax Relief introduced in 2013 and a strong post-Covid rebound. These factors have attracted substantial inward investment, positioning the UK as a global production hub.
Market Size and Revenue Projections
The broader TV and video market in the UK is projected to reach $34.28 billion in revenue by 2025, with a steady growth rate expected through 2030. This underpins the importance of the screen industries to the UK economy and cultural landscape.
Challenges Ahead
Despite the optimistic growth figures, the industry must address the imbalance between booming inward investment and declining local production. Without strategic investment in skills development, infrastructure, and support for domestic projects, the “feast or famine” cycle could deepen, risking job losses and reduced creative output.
The UK film and television industry in 2025 stands at a crossroads. The influx of Hollywood blockbusters is driving unprecedented production spending and job creation, but the sharp decline in local high-end TV commissions and international co-productions reveals a fragile ecosystem. Addressing critical skills shortages through substantial training investments and expanding studio infrastructure are vital steps to ensure the UK remains a competitive and sustainable global production hub. Balancing this “feast or famine” dynamic will define the sector’s trajectory in the coming years.
