Written evidence submitted by Fulwell 73

Response to the Culture, Media and Sport Select Committee Inquiry into British Film and High-End Television

About Fulwell 73

Fulwell 73 was established in 2005 by lifelong friends Ben Winston, Leo Pearlman, Ben Turner, and Gabe Turner. In January 2017, it was announced that James Corden would be joining the company with immediate effect as a fifth partner.

Fulwell 73 strives to make top-quality television and film productions. Based in London and Los Angeles, the company opened its first UK regional office, Fulwell North, in Sunderland. The company’s founding partners have strong connections with Sunderland and a passionate commitment to the North East.

Fulwell 73's television slate is extensive, including many shows with some of the world's top talent; Adele, Ed Sheeran, The Kardashians, One Direction, the Rolling Stones, Jack Whitehall, and Elton John have all made shows with Fulwell 73. Our major motion picture productions include the hit Cinderella.

Fulwell 73 will draw on its history of successful collaboration with major film production companies, streaming services, and broadcasters to attract high profile productions to the new proposed Crown Works Studios complex.

About Cain International

Cain International is a privately held investment firm operating in the United Kingdom, Europe, and the United States. Founded in 2014, the firm invests in real estate debt, equity, and experiential businesses, and currently manages $15.1BN in assets (as of 31 March 2023).

Its UK real estate developments include Islington Square, a landmark mixed-use development in North London, and The Stage, a 2.3-acre mixed-use development in Shoreditch. The firm is also delivering several trophy assets across the US, including One Beverly Hills, a 17.5-acre mixed use development that has been deemed one of the most impactful placemaking projects in the country.

About Crown Works Studios

Fulwell 73, the global entertainment company, and Cain International have set up a joint venture ‘FulwellCain Studios’ to build Crown Works Studios. The plan is to invest £450m to build a new film studio complex in Sunderland in 3 phases between 2024 and 2027. It will be 1.7mn sq. ft, have 20 film stages and be constructed on an 80-acre brownfield site on the south bank of the River Wear in Sunderland.

This new UK second hub for film and high-end television (HETV) production, based in the North East will be one of Europe's largest studio complexes. The project has the active support of Sunderland City Council, which has established a fourth strategic priority: making Sunderland a thriving production centre for the film and HETV industries.

At present, among the 15 largest studio facilities in the UK, there is just over 1.4 million sq. ft. of stage space. Existing facilities plan to add 1.6 million sq. ft. of stage as part of their planned expansions. New purpose-built facilities are expected to ultimately add nearly 2.3 million sq. ft. nationwide Crown Works Studios will account for 416,000 sq. ft. or at least 18% of this new stage space.

Our understanding is that some of the 'planned' increase in capacity elsewhere in the UK is now on hold including major sites such as Sunset Studios and Marlow Studios. Consequently, Crown Works Studios will be a higher percentage of the completed studio space because of the cancellations and delays to other projects.

Written Response:

Executive Summary

The UK film and high-end television (HETV) sectors are a great British success story. There has been a remarkable growth in screen production spending, particularly in the HETV sector, with total spending increasing fivefold between 2013 and 2019.[i] The film and HETV industry generated an estimated £5.6 billion in production value in 2021, supporting 118,000 jobs.

The UK's attractiveness as a global destination for film and HETV production hinges on its competitive financial incentives, infrastructure, and creative talent. However, we are at an inflection point. The shortage of stage space and a skills deficit threaten the UK’s continued success. Key countries are improving their tax incentives, skills base, and studio provision to secure film and HETV productions.

We need to act now to address these issues if the UK is to secure a larger share of the growing market for film and HETV production. The capacity issues are particularly acute in the greater South East where most UK production is located. Existing studios are fully booked, and crew shortages impact the quality and profitability of productions. Evidence suggests the UK is losing productions because of these constraints.

The industry's reliance on a weaker Pound Sterling value to attract productions raises concerns about potential fluctuations and how they could impact the growth of the UK industry. The concentration of the UK industry in the greater South East, a region where the cost of living and thus production costs are high and where there is an acute shortage of both studio space and skilled personnel, is an issue. In addition, recent proposed changes to business rates threaten the success of existing UK studios and the provision of new capacity as bills have increased by 4 to 5x their previous level.

Without adapting the existing UK offer to meet this cost challenge, the UK film and HETV industry could face increasing difficulties.

Our message is simple:

1. The UK industry faces a shortage in studio space and a skills deficit that threatens its future growth.
2. This is best addressed by building a second UK hub for film and HETV production.
3. We need a partnership between government and industry to deliver this including the provision of a financial support package by Government.
4. Crown Works Studios can deliver this now in the North East and is working to achieve a partnership with the UK Government to make it happen.

How attractive is the UK as a global destination for the production of film and high-end television?

The UK is an attractive destination for global investment but there is no loyalty to locations or jurisdictions in the industry. Producers compare the cost of production, the facilities and the skills base in different countries and regions and those that offer a more compelling overall package to place production will secure those contracts. If the UK’s offer compared to other countries gets worse in relative terms, then the UK could lose out.

The UK is attractive because we have some good tax breaks and great creative talent. The introduction of HETV Tax Relief in April 2013 was a key factor in a dramatic increase in UK film and HETV production which grew at an annual compound rate of 18.4% between 2013 and 2019. The rate for HETV alone was 33%.[ii] In addition, the UK has the advantage of having English speaking skilled crews and a rich history of film making.

These qualities have delivered increased production spend in the UK, which is growing rapidly especially with the advent of the new HETV sector:

• The total value of screen production in the UK rose to £5.6bn in 2021, and the industry generated an estimated 118,000 jobs in the UK, according to estimates prepared by Saffery Champness and Nordicity.
• Post COVID the industry has also grown rapidly and is forecast to continue growing in the next 5-10 years.

However, the industry is at an inflexion point. Rapid growth is expected for HETV in the next few years, but that production does not need to be based in the UK. The industry could be a ten-billion-pound UK success story in the next few years, or it could rapidly decline as our competitors improve their offer– what we do now will determine which road we take.

The UK can still do better and grab a greater share of the world market. According to Ampere Analysis, USD 238 billion (£185 billion) was spent globally on original content in 2022. The UK currently only captures under 5% of the global market leaving significant room to expand our market share as well benefitting from the overall growth of the industry. To do this we should keep the existing tax reliefs under review to ensure they remain competitive, but the UK also needs to put in place three things:

• Additional premium studio space to meet the anticipated production demand.
• A programme to meet the skills gap that is emerging in the UK industry.
• The creation of a second hub for film and HETV production in the UK to achieve sustainable growth in the industry.

Crown Works Studios helps achieve each of these three vital objectives through providing the largest studio complex in Europe outside of the greater South East of England. This will secure jobs, economic growth and export earnings for the UK helping level up our country.

What are the barriers to maintaining and increasing overseas investment in the sector?

The film and HETV sector is rightly recognised as one that is booming. However, the UK is in fierce competition to secure productions with a variety of jurisdictions that are improving their offer:

• Competitor nations such as France are directly investing in individual film studios, in this case pledging to double the surface of its film sets.[iii]
• In Hungary facilities such as ORIGO and Korda are regularly at full capacity, and the country is further expanding its infrastructure to meet demand.
• Beyond Hungary, in Eastern and Southern Europe there's a rise in production activities in Czechia, Poland, Croatia, Serbia, Bulgaria, and Romania.
• Spain is raising its incentive and is in the process of tendering for the reopening of the large studio Ciudad de la Luz.
• Germany has recently seen TPG, a leading US global alternative asset manager, finalise its acquisition of the nation's prime production hub, Studio Babelsberg AG.
• In Canada, the country's screen sector reported its most prosperous year ever, with Ontario registering record levels of film and HETV productions, marking 419 productions in 2022.

• Many countries including Australia[iv] are reviewing the financial incentives they provide and improving their offer.
• Olsberg SPI, a strategy consultancy for the creative industries produces a global incentives index. It estimates there are around 100 incentive offers at country, state, and provincial level.[v] It suggests that “the international production landscape is seeing an increase in regional or city-based incentives.”[vi]

In contrast, UK production is heavily centred in the greater South East and the sector is facing capacity issues with shortages in studio space and crew and a range of emerging policy issues that frustrate its growth:

• Planning regulations in the UK are a drawback making the process of agreeing major developments more expensive, time consuming and difficult than in many other countries. Thankfully Crown Works Studios enjoys local popular and political support but concerns over planning are already holding back studio developments such as Marlow.[vii]
• Business rates changes where the Valuation Office Agency has introduced a so-called ‘studio tax’ from the start of April 2023, have resulted in existing studios rateable value increasing by a factor of 4/5 in some cases. Studios that existed before 31 March 2023 will have the increases capped at 30% initially, but with increases of a similar magnitude for successive years. New studios such as the proposed Crown Works Studios project would not benefit from a business rates cap.[viii] This could threaten plans to increase studio space and if these higher rates are passed on to producers, make the UK a less competitive location to base film and HETV projects.
• The drop in the value of the Pound Sterling in recent years has made the UK a more attractive place for production[ix], a rise in its value could easily undo this exposing some underlying issues in the UK industry currently hidden by the currency depreciation.

The biggest capacity issues are the emerging shortage of both studio space and skilled crews, as detailed below.

The shortage of studio space:

Evidence suggests that, outside of the recent period of industrial disruption, “both international and UK film and TV production companies are finding it increasingly difficult to secure space, particularly around production hotspots in London and the South East; existing UK studios are booked out for years in advance and turning away film and TV productions.”[x]

Lambert, Smith Hampton, the UK and Ireland’s largest commercial property network in its 2021 report ‘Sites, Camera, Action. Take 2!’ found that:

• “The UK’s film and TV studios have struggled to meet booming demand for production space in recent years.” The then investment pipeline was “insufficient to meet future demand.”
• They stated that “a lack of studio space stands alongside an emerging skills shortage as one of the two biggest potential obstacles to the future growth of the UK’s film industry.”[xi]
• They believed that the UK is “losing out of several major film projects each year due to a lack of production space.”[xii]

This issue is already acute and is set to worsen as demand increases:

• Saffery Champness and Nordicity have estimated that an additional 2.48mn sq. ft of UK sound stage space will be required by 2025 to accommodate the forecast increase in HETV and film production spending. Some of the projects that were planned to address this have now been put on pause (e.g., Sunset studios).
• Knight Frank, the Global Real Estate Advisor, estimated that the UK will need an estimated 6 mn sq. ft of UK film and HETV production space by 2026.[xiii] They found that: “The supply of film studios on offer is insufficient to keep pace with the rising demand for new content. This shortage is placing sustained upward pressure on rents, driving the case for new development and investment in the sector.”[xiv]

The shortage of skilled crew:

This is driving up costs and is not helped by the industries concentration around the greater South East, which is one of the highest cost areas to live in the UK. The issue is widely recognised by noted industry bodies such as the BFI and Screenskills as explored below.

In 2021, the then Department for Digital, Culture, Media, and Sport (DCMS) called on the BFI to undertake a skills review, focusing on scripted film and high-end television production.

The BFI Skills Review released in 2022 recognised that:

• “Crew shortages at all levels, not just new entrant, are impacting film and HETV productions, and are especially threatening for the success of the independent film sector, which serves as a developing ground for new and exciting world-class UK talent but typically operates under a less profitable business model.”[xv]

ScreenSkills is the UK’s industry-led skills body for the screen industries, their report ‘High-end Television in the UK: 2021/22 workforce research’ and 2022/23 update found that:

• “demand for HETV production work is the main market force leading to the skill shortage and gap.”[xvi] (2021/22 report)
• “a majority of those who took part in the study perceived the skills shortage and skills gap issues as being 'very serious' or 'serious'.” (2022/23 study update)
• 41% believed the skills situation had worsened in the past 12 months, 22% believed it had improved. [xvii]  (2022/23 study update).

Why this matters:

The problems the skills shortage creates were detailed by David Puttnam, in his final speech as President of the Film Distributors Association at BAFTA where he explored the dangers if the UK does not invest in building up the skills base:

• Launching the FDA’s 2023 Yearbook, he said UK underinvestment had created perilously high staffing costs.
• He stated, “Foreign investment in the [UK] screen industries will decrease because other countries will prove themselves more adept, more interesting and better value for money for the production sector.”[xviii]
• He continued “There will be investors in the US and elsewhere saying: ‘Do we really need to be in the UK and pay those excessive prices when we could actually do this film in the Czech Republic or Germany or elsewhere?’”[xix]
• He cited the multiple Oscar- and Bafta-winning All Quiet on the Western Front as an example of what non-UK venues could now offer.

What we need:

On studios, there is an increasing demand from studios and streamers for premium production facilities rather than simple warehouses/repurposed industrial spaces due to distinct advantages.

Crown Works Studios stages are purpose-built for film production, with acoustically treated interiors that counteract external disturbances such as aircraft, trains, or rain. Interruptions from these disturbances not only hinder the artistic process but can also lead to significant costs, with a lost day on set potentially costing over £250,000. Furthermore, our stages will be equipped with advanced climate control systems, ensuring a consistent and comfortable environment for the cast and crew and efficient removal of smoke from special effects. The premium stages will provide enhanced versatility with features like adjustable lighting and rigging setups and allow for a greater range of camera angles and VFX.

On skills, Screenskills estimated that to meet the skills gap emerging in the film and HETV sector (June 2022) the UK would need:

• Between 15,130 and 20,770 additional crew to meet demand.
• By 2025, training the existing and new workforce will need annual investment of £95.1 million to £104.3 million.
• The estimated economic return is more than 15 times the cost of the training investment.[xx]

This is why many industry leaders such as John McVay, the Chief of PACT, the UK screen sector trade body representing and supporting independent production and distribution companies, have stated “It’s not just about investment, it’s about having a proper labour market strategy.”[xxi]

We believe that the answer is to build a second UK hub for film and HETV production to ensure we have the studio capacity and the pipeline of skills needed to support the growth of the industry and we are taking the following actions:

Crown Works Studios: Action on studio space:

• Crown Works Studios helps meet the demand for premium facilities. It will deliver a total of 20 sound stages in three phases between 2024-27 (416,000 sq. ft), ranging in size from 10,000 to 30,000 sq. ft. Most will be premium stages of at least 20,000 sq. ft and with a minimum ceiling height of 40 ft.
• In each phase, the development of sound stages will be complemented by adjoining production offices and workshops. The development is positioned so we can be flexible, potentially creating studio space at a faster pace to allow productions to be undertaken while the rest of the construction takes place.

Crown Works Studios: Action on Skills:

Our plan helps meet the UK film and HETV industries skills challenge through the creation of Four Academies in the North East to nurture the regional skills base:

• A Film & TV Production Academy (for 14–16-year-olds): To be delivered by a dedicated technical education and skills provider to meet the legal core requirements of the national curriculum alongside technical screen specialisms.
• A Technical Academy (for 16-19 year olds): To provide students with part time industry training, or work on industry endorsed projects (when a production company is on location and has agreed to Academy engagement through a prior contractual skills plan).
• A Screen Academy (for 19+): To include several strands such as a skills bootcamp for crew operation specialists, employer informed adult qualifications and competency training for bespoke organisations.
• A Careers Academy (for adults and higher education): Through a lead provider model and in association with production skills plans, this Academy will work with the production company as a coordinating point for work shadowing, placements, and paid internships.

Crown Works Studios will also build links to the Sunderland Armed Forces Partnership which comprises many key institutions across the city of Sunderland, and who support the training of reservists and veterans. This pipeline of future employees will bring significant transferable skills to the screen industries.

What are the benefits and challenges of overseas investment for the UK’s film-making capacity?

The Benefits:

The creative industries are a success story for the UK, with film and High-End TV (HETV) referenced in the Spring Budget by the Chancellor as a "critical sector" to which he would like to give "more momentum". Overseas investment creates jobs and boosts economic growth in the UK, and the film and HETV sector is a key growth sector for the UK.

The £450 million inward investment in the Crown Works Studios would be the largest investment in the North East since Nissan and would achieve a similar impact:

• £336mn GVA contribution to the North East alone and £759mn to the overall UK's GVA.
• A brownfield site in the centre of Sunderland rejuvenated and high wage jobs created in a growing industry.
• 8,450 jobs for the North East alone with a projected 20,970 across the UK.

For context the Department for Business and Trade has recently given itself an internal target to support investments that generate 35,000 new jobs outside London and the South East in 2022-23.[xxii]

The Challenges:

This is about how do we ensure that we have the studio capacity and the skilled workforce to meet this demand. These are good challenges to have because they are a product of the industry’s rapid growth, but we must take action to address them or:

• These high-value productions will move elsewhere.
• The significant gap in the availability of sound stages will be worsened by the postponements and difficulties with projects like Sunset and Marlow.
• There will be fewer job opportunities and lower tax revenues leading to poorer public services.

What are the current challenges facing the UK’s independent film production sector?

Independent films operate on low profit margins and rely on a thriving wider industry whose activity can effectively cross-subsidise this work by providing a stream of wider work to supplement incomes. Having so much of the UK industry centred in the Greater South East makes productions more expensive and threatens the survival of this sector within the UK.

The creation of a second hub for UK film and HETV production located in the North East will help nurture and grow the independent sector through building a skills ecosystem allowing talent to mix freely in an area where living costs are lower and thereby lower margin projects could become viable. This helps the whole industry by encouraging young talent and projects that may seem commercially difficult but turn into real success stories.

What is the demand for and capacity for production of films with a clear British identity?

There are many different areas in the UK that contribute so much to Britain, but their voice is not being heard. We have found that there is huge interest in North East productions in particular as the industry understands the unique potential of the region, as we explore below.

Unique locations:

The North East in particular has a range of locations which have not been filmed extensively and speak to British heritage whether it is beautiful coastlines, rugged landscapes, impressive castles and old industrial sites etc. These diverse filming locations appeal to producers and filmmakers across a range of genres. The locations are highly supportive of filming, lower in cost and fresh to the lens.

The North East’s locations are already being used in many big budget productions e.g. The Avengers, Transformers, Indiana Jones, but without a studio to base production, the streamers and studios come for a few weeks and then leave. Martin Joy, Unit Production Manager, known for Indiana Jones and the Dial of Destiny and Star Wars: Episode IX – The Rise of Skywalker is one of many that recognises the benefit of having a permanent regional film hub in the North East:

• "As a UPM on productions that have shot in the North East, I’ve always been impressed by [the] potential of the area in terms of its landscape and location opportunities. The development of a regional studio facility would complement the unique locations and give film makers more reason to consider the area as a production base. With the current pressure on the main studios around London, productions are more and more looking to viable alternatives to support complete productions both in film and TV. The opportunities are there and a regional film hub in a zone with a wealth of locations could make the North East an attractive proposition.”

To ensure we realise the potential of the North East, Fulwell 73 and Cain International plan to build a second hub for the UK film and HETV industry at the Crown Works Studio site and we have already secured vital industry backing and are creating a model that can take advantage of the growing demand for studio space in a flexible way.

Crown Works Studios: Industry backing through a unique partnership:

Demonstrating the industry backing for the Crown Works Studios project is the fact that Fulwell 73 have secured the support of the highly influential Creative Artists Agency (CAA) for the Crown Works Studios project. For the last 15yrs CAA have represented Fulwell 73’s interests in the industry, playing a key role in the company’s growth, helping to secure talent for projects, helping to sell completed and development projects and working closely with the business as strategic partners when seeking investment.

CAA is an American talent and sports agency based in Los Angeles, California. Across film, television, music, sports, digital media, marketing, and beyond, it represents thousands of the world’s leading actors, directors, writers, producers, musical artists, comedians, authors, athletes, coaches, broadcasters, teams, leagues, chefs, designers, fashion talent, consumer brands, and more.

To put into context the scale and reach that CAA has in the industry, they are the largest pure talent agency in the world, worth over $7b, with 1800 employees and over 2000 clients globally. They have a turnover of over $500m per annum from their TV and film business, the majority of which is derived from packaging content between their on-screen, off-screen and streamer/studio clients.

Crown Works Studios: Creating flexible capacity to maximise UK productions:

Perhaps the greatest challenge that studios face is attracting productions to their facilities, especially if they are a new facility. Many therefore rely on initial long-term leases with a single client, at greatly reduced rates, to underwrite and justify the cost of the initial build. In contrast, Crown Works Studios have a strong relationship with CAA which will allow it to work with the world’s largest agency to bring production to the facility from every streamer and studio on the planet.

The partnership could be game changing for the UK film and HETV production industry as the CAA suggest in the following quote they have provided:

• “Fulwell 73's commitment to building a world class production hub will supercharge the UK's production industry by cultivating a highly skilled local workforce to service the global film industry. We believe in their vision for Crownworks Studios and recognize the tremendous economic impact a facility so advanced will have on the local economy, as well as the European creative community.”

Are the nations and regions of the UK adequately represented and supported in the production of British films?

They are not. The stats speak for themselves. Last year the total spent on film and HETV in the U.K. was 6.27 billion pounds. Less than 1% of this was spent in the North East.

Like most UK regions outside London and the South East, the North East has limited resources when it comes to skilled and experienced production crew. There are pockets of excellence, but the regional availability of crew is small, and the supplier base is relatively thin.

These factors – and the associated costs of temporarily importing crew and service suppliers pose a challenge to attempts to spread the opportunities in film and HETV across the UK nations and regions and build the second hub for UK film and HETV production that we need.

For the North East to take its seat at the top table of film and HETV production, it needs world class infrastructure, and a skilled workforce equipped to deliver for a 21st century studio. This local skills base will need to be built up gradually and this requires a partnership with Government to deliver time limited financial support until this skills cluster can become self-sustaining.

Crown Works Studios: Ensuring real representation for the North East through world leading facilities

Crown Works Studios provides both the infrastructure and has developed a skills plan to help create a new skills cluster for the film and HETV industries in the North East. This is not just a regional studio - this will be one of the largest and best equipped filmmaking complexes in Europe. A global play by a region left behind by one of Britain’s fastest growing sectors.

The project has much already in place:

• £450 million of private investment,
• a brownfield site in the centre of Sunderland,
• local political and popular support.

We are now working in partnership with the UK Government to deliver a package that can ensure the delivery of the Crown Works Studios project. It needs intervention beyond the current UK Film Tax Relief to establish the North East as a world-class hub for major film and HETV productions.

What more can be done to incentivise film and high-end television production in the UK?

Building a second hub for UK film and HETV production:

The most important step is to develop the second UK hub for film and HETV in the North East of England. This won’t detract from the South East it will complement it. By a hub we mean the provision of a major studio with premium studio space and a skilled local workforce, this would be enough for skilled people in the film and HETV sector to make their career in the North East.

Crown Works Studios: Providing premium studios:

It is not just the case that we need the second UK hub but that the North East is especially well placed to provide it. Through Crown Works Studios there is a viable plan with local political support ready to start now. Aligned to Sunderland's Smart City ambitions, CWS will offer high speed connectivity to digital supply chain business, from virtual to post production. This makes the studio ideally suited to take advantage of VFX opportunities as these companies are increasingly looking outside London, for lower costs, but also to capture and retain talent. In London, it is proving very difficult to retain talent in a fiercely competitive market.

Crown Works Studios: Building on the impressive talent present in the North East:

The project will leverage the creativity and the talent of the whole North East to deliver this project, much of this talent currently has to travel south or abroad to find work, with our project it can stay and thrive in the North East:

• The University of Sunderland is a top-50 University, on media and film studies is rated 4th in the UK[xxiii] and on film production and photography it is rated 5th, with an outstanding reputation for teaching and research in the art and design, performing arts, applied arts, film and media.[xxiv] The region also includes Northumbria University which is ranked 2nd in the UK for Film, Production & Photography.[xxv]
• Education Partnership North East, a dynamic and large further education partnership, which includes Sunderland College, with specialisms in design, media and broadcast production, performing arts, and VFX and animation will play a key role in delivering production crew training and retraining.
• The North East Screen Industries Partnership (NESIP) a new vehicle, established to facilitate the strategic development of the film and HETV industry in the region, including screen industries and FE / HE organisations building creative talent in the region formed by Combined and Local Authorities from across the region equipped to deliver a 5-year, £11.4m support package to grow the film and HETV sector.
• North East Screen a regional screen industry agency and a key strategic partner skilled and able to deliver the NESIP.
• Sunderland City Council has established a fourth strategic priority: making Sunderland a thriving production centre for the film and HETV industries.

Crown Works Studios: Delivering the skills pipeline to create a skills cluster of the film and HETV industry:

Crown Works Studios will create the following institutions and courses to nurture and grow the skills pipeline to ensure it becomes self-sustaining and gives the region a real competitive advantage compared to foreign competition:

• A skills academy on site to ensure that those trained in the essential skills needed have employment directly linked and on-site once they qualify.
• A screen industries skills programme to deliver training, retraining and education to support the development of a skilled and motivated workforce in the North East.
• A business development and support service will support start-ups and promote company growth, helping to create a robust and sustainable supplier base in the region.

To inform and bring together these strands Education Partnership North East and Fulwell 73 are developing a comprehensive skills plan for the region. This draws on; practices from across the four UK nations that have been used to shape and inform a skills strategy. It is focusses on building a pan regional approach between education, skills, and the screen sector through a new skills plan to achieve the following:

• Delivery of a fully inclusive public-private skills strategy capable of galvanising all relevant cross sector providers within the North East.
• Leverage the wide-ranging benefits of considerable existing core education funding such as within the further education skills system.
• The production of best-in-class approaches to cross fertilising pre-and-post 16 core curricula (apprenticeships and classroom based) with transferable knowledge and/or competencies for the screen industries. On the latter where appropriate, our work will drive the integration of industry endorsed curricula within qualification routes sitting across the English Regulated Qualifications Framework.

Crown Works Studios will enable the creation of a strategic skills alliance or ‘hub’ to directly contribute to the local pipeline of skilled freelancers and future employees for the broad screen industries. The hub will consist of four academies – career, Film & TV Production, technical and screen (as described previously). The industry backed centres, or ‘regional spokes’ will consist of selected universities, further education and skills colleges, specialised skills centres, screen agencies, and other providers each delivering industry endorsed curricula.

Crown Works Studios: Nurturing the North East supply chain to create a world beating offering:

Crown Works Studios will stand at the centre of the Northern UK’s creative ecosystem. In addition to the creation of thousands of jobs, its on-site 'Vendor Village' will serve as a hub where businesses, large and small from the creative sector converge, facilitating seamless collaborations. This will support North East businesses more broadly including:

• Over 2,600 enterprises registered in the North East in 2022 within one of the core screen industries.
• 13,000 working in relevant management consultancy enterprises with 9,000 in temporary employment agencies.
• 20,500 people working in 1 of the 15 occupations identified as a core screen industry occupation. Including more than half in creative IT roles, 31% being programmers or software developers; and almost 6,600 workers who are performers or involved in the management, production, or direction of performers.
• 100,000 in occupations relating to broad screen industries with almost 29% business professionals/ business support, and 27% in hospitality, and similar within the construction industries (Census 2021).

Are the current funding routes, tax credits and governance for the industry fit for purpose?

They are not equipped to deliver the growth the UK film and HETV industry need. As we have detailed, the South East has growing capacity issues, the cost of living is much higher, local political opposition to development is higher and a rapid ramp up in capacity is needed, which the region is not able to deliver. There is a great concentration of funding and support for the industry, but it tends to gravitate to the Greater South East which means we are not using the talents and potential of the whole UK.

The tax credits are good but they must be kept under constant review to ensure the UK’s position remains competitive. We also need to go further by adding to the UK offering and enhancing it by leveraging the skills of the North East in particular, which as we have mentioned elsewhere gets a low proportion of UK spend on original content.

The UK cannot afford to be complacent. This is why we are seeking to work with the UK Government to deliver a second UK hub for film and HETV production. The problem in developing it is as follows:

• Skilled crew trained and developed in the North East will not stay there if the work continues to be based in the Greater South East.
• Producers will not place production in the North East if skilled crew are not located in the region.
• The solution is for producers to bring skilled crew to the North East while Crown Works Studios builds the studio and works with partners to build up the local skills base but this will lead to increased costs in the short term.

Research by Screenskills on the distribution of skills shortages across the UK nations and regions found that regional leaders believed the best way to incentivise production was through:

“Financial incentives” which were “the necessary precursor to achieving the ambition of developing and retaining more local crew.” One of the financial incentives referenced was production funds.

We believe it could take a variety of different forms provided the financial package agreed delivered that all-important second UK hub for film and HETV production.

What can the industry and Government do to ensure British film and high-end television can adapt for the future?

Piecemeal reform will not get us to where we need to be, a vision is needed that can build a new industry in the North East – the UK’s second hub for film and HETV production. Here the example of Nissan’s investment in Sunderland many decades ago shows what can be achieved through a partnership between the UK Government and industry. We need that vision and ambition again to secure the growth of the film and HETV industry in the UK. We know it can be done and we are working to make sure it is done through the delivery of Crown Works Studios.

What should be prioritised to ensure a strong skills pipeline and retention in the film and high-end TV industry?

We welcome the current steps being taken to address the skills shortage in the film and HETV sector including:

• The creation of the Screen Sector Skills Taskforce.
• The BFI’s investment of £9.6m of National Lottery funding over three years to support skills development and training across the UK, through national and regional Skills Clusters.[xxvi]

We now need a partnership between the UK Government and the industry to deliver Crown Works Studios to secure the skills pipeline and to support the UK industry’s long-term growth through creating the second UK hub for film and HETV production. As we have previously stated this requires time limited Government help to put in place the package we need to succeed.

What needs to change to ensure the industry is supporting inclusivity and sustainability.

On inclusivity, the voices of regions such as the North East have been neglected for too long and projects such as Crown Works Studios will help ensure that the creativity and the drive of the regions people is reflected in our country’s creative content.

On sustainability, the industry benefits from having the planned expansion in stage space done in a manner which is sustainable, and Crown Works Studios will lead the way on this. The project emphasises sustainability throughout its developmental and operational phases. The development adheres to stringent sustainable building standards. Operationally, the project sets a precedent in sustainable studio production practices, encompassing everything from materials sourcing to waste management.

Conclusion

The UK needs a second hub for film and HETV production. This will address the deficit in skills and the shortage of stage space that could derail the UK industries growth. Crown Works Studios helps provide this in the North East. It will not detract from the significant capacity the UK has in the greater South East which is facing significant capacity issues. It will provide a vital new addition to the overall UK offer by allowing the UK to remain cost competitive and taking advantage of the under-filmed locations and lower cost of living that there is in the North East.

Crown Works Studios will be the focus of the second hub for UK film and HETV production. It will help the UK secure a greater piece of the international market, generating local jobs and export earnings and benefitting the whole UK industry. To deliver this we need a partnership with the UK Government to deliver a time limited financial support package, which we are working to achieve.

The stakes are high – if a deal cannot be agreed and projects such as Crown Works Studios cannot go ahead then Hungary, France and many other countries stand ready to seize this industry and the jobs and growth will take place elsewhere. The clock is ticking and what is a great British success strategy could become a big, missed opportunity.

We need to address the shortage of skilled crew and studio space in the UK by building that second hub for UK film and tv production in the North East. Crown Works Studios stands ready to do just that, but we need your help.

Questions not answered:

What are the issues facing the UK’s film exhibition sector?

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What more can be done to protect and promote the UK’s screen heritage?

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What are the risks and benefits of artificial intelligence to the sector?

N/A

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