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Increased Tax Credit Provides Welcome Relief to U.K. Independent Film Industry

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Increased Tax Credit Provides Welcome Relief to U.K. Independent Film Industry

The announcement of the U.K.’s new Independent Film Tax Credit (IFTC) back in March had a near instantaneous impact, at least in the case of one film production.

“Giant,” the biopic of boxer Naseem Hamed and starring Amir El-Masry, was in advanced pre-production when the news landed, with plans to shoot location work in Hamed’s home town of Sheffield and all the interiors — including the essential boxing rings — in Malta. Sets were already being built on the Mediterranean island, which has been courting numerous film productions in recent years thanks to a generous 40% tax rebate initiative.

But then the IFTC was unveiled and the U.K., when it came to producer’s all-important bottom line, was suddenly much more competitive. What had previously been a 20% tax break was now around 32.5% (it was initially billed as 40%, but is actually lower after corporation tax). Given the costs involved in shipping the film overseas, “Giant” didn’t need to pack up its bags.

“As soon as the tax credit came out, we did the analysis and immediately it made more economic sense, straight away, to keep it here,” explains Zygi Kamasa, the head of distributor and producer True Brit Entertainment. “So we pivoted within days of it coming through.”

“Giant” may have been the first, but just six months on from the announcement of the IFTC Kamasa says that it’s contributed enormously to the output of his nascent company — which was only launched in November 2023 with a focus on films for British cinemagoers. Where there was an initial aim to produce three films in its first year, True Brit will soon begin shooting its eighth. And while some — like “Giant” — would have happened regardless of the tax credit, he says “there were movies that were definitely expedited” because of it.

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The significant interest and optimism within the British film industry since the IFTC’s announcement, despite not yet being fully implemented, is a far cry from the dark days of 2022. A report commissioned by the British Film Institute (BFI) that year had the key and ironic takeaway that the overall boom in the country’s film and high-end TV sector had led to a corresponding negative impact on the independent sector. It found that the speed and volume of growth strained the sector so much that it couldn’t compete with larger budget international productions on several levels — from accommodating the rising cost of production to securing cast and crew, and ultimately to reaching audiences.

BFI statistics reveal that getting U.K. films budgeted under £15 million ($19.6 million) into production had become increasingly challenging. After plummeting by 31% in 2022, spend on independent U.K. film in 2023 fell a further 11% to just £150 million ($196.9 million).

Now, in 2024, post IFTC announcement, Harriet Finney, BFI deputy CEO and director of corporate and industry affairs, says, “We’ve seen a lot of positivity in the industry. It’s definitely changed the conversation for independent filmmakers in this country.”

The BFI is currently preparing for increased capacity once the statutory instrument and guidance notes are published later this year. Finney explains, “We’re making sure that we’re in the best possible position to deal with what is likely to be a flurry of activity. It feels like there’s a growing sense of confidence around domestic production.”

Simon Williams, managing partner at Ashland Hill Media Finance, reports seeing an uptick in projects considering filming in the U.K. “We’re getting lots of different projects coming to us, asking if they should be shot in the U.K.,” Williams says. He notes that some international producers are exploring the possibility of adapting their scripts to meet U.K. requirements. “The U.K. looks more attractive for film currently, because the tax credit, it’s probably bigger than pretty much anywhere else in the world, aside from maybe Australia. But Australia is far away and it’s costly to take people over there,” Williams said.

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However, Williams expresses concerns about potential cost increases. “We don’t want costs to increase by shooting in the U.K., which negates the benefit of the tax credit,” he cautions.

Ashland Hill-backed “The Magic Faraway Tree,” based on Enid Blyton’s beloved book, is currently in production. “The Scurry,” directed by Craig Roberts and starring Ella Purnell, Rhys Ifans and Antonia Thomas, has just finished shooting, which Ashland Hill funded against the increased tax credit. “That film would never have happened if it wasn’t for this increased tax credit. I think the only thing that may deter some lenders from putting money against it [is] if you are entering into a production now, you can’t put a claim in for your tax credit until April next year. Whereas in the current tax credit, you can make interim claims, which from a producer’s perspective, if you have a lender, you can make multiple claims and pay down the loan quicker, rather than doing one big claim in 18 months time,” Williams said.

Alex Ashworth, head of production at Anton, believes the IFTC will make a significant impact, particularly for films in the £5-15 million ($6.5-19.6 million) budget range. “I think it will really help independent film producers where we’ve lost that mid-budget section,” Ashworth says. “There was a long time where that was the U.K. sweet spot, films like ‘The King’s Speech,’ and I feel like the cost of production has gone up so that it’s very hard to make those at that level. Our incentives are good, but they aren’t necessarily comparable to some other territories. So by doing this, you’re offsetting basically the inflation that our production industry has experienced in the last five to seven years. I think it will really help those independent films who are probably struggling to get their finance plans to hit those higher budget levels.”

Ashworth estimates that Anton is currently working on four to five projects with the IFTC in mind for shooting in the next 12 to 18 months.

Producer Alastair Clark, whose recent film “Sister Midnight” premiered at Cannes, also sees the IFTC as a positive development for the industry. “The mood is great,” Clark says. He also points out that while the net benefit is around 32.5% after corporation tax, rather than the initially advertised 40%, it’s still a significant improvement over the previous system.

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Clark is already incorporating the IFTC into his project planning. “Certainly, one very solid project right now that we’re raising the finance for. It’s a big part of it,” he says. Clark believes the increased tax credit will reduce the need for riskier private financing in some cases. “Borrowing against the tax credit versus borrowing against an MG (minimum guarantee) or a sales advance, is cheaper, and therefore helps finance plan a budget,” Clark said.

While the industry awaits full implementation of the IFTC, the initial response suggests it could play a crucial role in bolstering the U.K.’s independent film sector and positioning it far more attractively on the global stage. For Phil Hunt at Head Gear Films, it’s certainly a very positive move after the “nightmare of Brexit,” which he claims “ripped the heart out of indie co-productions.” The veteran producer says he’s already noticed that producers in North America are “definitely now looking to put more productions in the U.K. and, when talking to folk in LA, there seems to be a drain away from the U.S.”

But that’s not to say that execs are seeing IFTC at the perfect solution, of course. As with most newly-launched financial incentives, there are hopes that it will be tweaked and changed along the way, especially with the U.K. under a new Labour government that has, traditionally, been more supportive of the arts. An ideal situation for many is that the 40% rebate actually does mean a full 40% for producers.

“I’d love the government to look at that,” says Kamasa. “I think it should be the full 40%, because then you’d be truly competitive with places like Malta and Italy.”

HOW THE IFTC WORKS

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The IFTC is calculated on “core expenditure” related to production activities, with qualifying companies able to claim up to 80% of their core expenditure or the amount of U.K. core expenditure, whichever is less. For a £15 million ($19.6 million) budget film, this could mean a maximum credit of £6.36 million before tax.

After corporation tax, which varies between 19% and 25%, the actual cash benefit could range from £4.77 million ($6.26 million) to £5.15 million ($6.76 million). This represents a substantial increase from the previous Audio-Visual Expenditure Credit (AVEC) system, which would have provided between £3.06 million ($4.01 million) and £3.30 million ($4.33 million) for the same budget.

The BFI will assess film budgets to ensure they meet the IFTC criteria. Productions that exceed the £15 million budget cap during filming will have the option to continue with the IFTC or switch to the AVEC system.

Claims for the IFTC can be submitted to HMRC (His Majesty’s Revenue & Customs) from April 1, 2025, for expenditure incurred from April 1, 2024, provided principal photography began after April 1, 2024.

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UPS distribution hub in Louisville has 300 flights per day. What to know

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UPS distribution hub in Louisville has 300 flights per day. What to know

LOUISVILLE, Ky. (AP) — A UPS cargo plane crashed Tuesday at an airport in Louisville, Kentucky, where the company operates its largest package delivery hub.

UPS calls the giant center Worldport.

Here’s what to know about its enormous scale:

Processes 2 million packages per day

The facility at Muhammad Ali International Airport sprawls across an area the size of 90 football fields.

It processes 2 million packages per day, but has the ability to handle even more. It has the capacity to process 416,000 packages and documents per hour if needed.

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The Louisville airport ranks third among U.S. airports for cargo as measured by weight, after Memphis, Tennessee, and Anchorage, Alaska, according to Airports Council International World.

A UPS town

Some 20,000 people work at the center, making UPS the largest employer in the Louisville area, the company said on its website.

Louisville Metro Council member Betsy Ruhe said everyone in town knows someone who works at UPS.

“My heart goes out to everybody at UPS because this is a UPS town,” Ruhe said. “My cousin’s a UPS pilot. My aide’s tennis partner is a UPS pilot. The intern in my office works overnight at UPS to pay for college.”

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Hundreds of flights per day

More than 300 flights take off and land from the facility each day..

A time-lapse video UPS posted on YouTube shows planes taxiing to and from special cargo gates. Workers unload containers packed with cardboard boxes. Other employees load the boxes onto a conveyor belt, which delivers packages to workers who load them into other containers.

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The center has room for 125 aircraft to park.

Louisville’s location in Kentucky puts it within four hours of flight time to 95% of the U.S. population. It serves 200 countries around the world.

UPS flies six different types of planes in the U.S.

It has 27 MD-11s, which is the model that crashed on Tuesday. It also flies the Airbus A300-600 and four different types of Boeing jets: the 757-200, 767-300, 747-400 and 747-8.

Expansions in Louisville

UPS made Louisville an air cargo hub starting in the 1980s. It opened the package sorting center it calls Worldport in 2002. The public media outlet Marketplace reported UPS picked the city because it doesn’t get a lot of extreme heat or snow and because it’s centrally located.

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The hub has steadily grown over the decades. Last year, UPS opened a new $220 million aircraft hangar in Louisville large enough to park two 747 planes side by side. The investment tripled the company’s maintenance footprint for the plane at the airport.

In 2022 it announced plans to add eight new flight simulators.

UPS Healthcare, which provides shipments for clinical trials, shipments to medical care patients and other services, was due to get two new buildings in the expansion.

UPS gets permission to fly its own planes in 1988

UPS got its start in Seattle in 1907, when two teenagers started American Messenger Co. The name United Parcel Service debuted in 1919.

The company won Federal Aviation Administration approval to operate its own aircraft in 1988.

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Headquartered in Atlanta, UPS today employs about 490,000 people worldwide.

___

This story has been corrected to show that the facility is equivalent in size to 90 football fields, not 10.

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Hegseth applauds South Korea’s plan to take larger role in defense against North Korean aggression

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Hegseth applauds South Korea’s plan to take larger role in defense against North Korean aggression

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U.S. Pentagon chief Pete Hegseth on Tuesday lauded South Korea’s plans to boost its military spending and take on a larger role in defending itself from North Korea’s aggression.

The U.S. has wanted South Korea to increase its conventional defense capabilities so that Washington can center its attention on China.

Hegseth spoke to reporters after annual security talks with South Korean Defense Minister Ahn Gyu-back in Seoul, where he said he was “greatly encouraged” by Seoul’s commitment to raising defense spending and making greater investments in its own military capabilities.

He said the two allies agreed that the investments would boost South Korea’s ability to lead its conventional deterrence against its northern foe.

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US, CHINA AGREE TO OPEN DIRECT MILITARY HOTLINE AFTER XI-TRUMP SUMMIT

U.S. Defense Secretary Pete Hegseth, left, looks on as South Korean Defense Minister Ahn Gyu-back, right, speaks during a joint press conference following the 57th Security Consultative Meeting at the Defense Ministry in Seoul, South Korea, Tuesday, Nov. 4, 2025. (AP)

South Korean President Lee Jae Myung, in a speech to parliament Tuesday, asked lawmakers to approve an 8.2% increase in defense spending next year. The president said the increase in spending would help modernize the military’s weapons systems and reduce its reliance on the U.S.

Hegseth noted defense cooperation on repairing and maintaining U.S. warships in South Korea, stressing that the activities harness South Korea’s shipbuilding capabilities and “ensure our most lethal capabilities remain ready to respond to any crisis.”

“We face, as we both acknowledge, a dangerous security environment, but our alliance is stronger than ever,” Hegseth said.

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TRUMP ARRIVES IN SOUTH KOREA FOR KEY TALKS AHEAD OF APEC SUMMIT, XI MEETING — NO KIM JONG UN REUINION

Pete Hegseth in South Korea

U.S. Defense Secretary Pete Hegseth, second from left, and South Korean Defense Minister Ahn Gyu-back, center, visit the Observation Post Ouellette near the border village of Panmunjom, South Korea, Monday, Nov. 3, 2025. (AP)

Hegseth said the South Korea-U.S. alliance is primarily meant to respond to potential North Korean aggression, but other regional threats must also be addressed.

“There’s no doubt flexibility for regional contingencies is something we would take a look at, but we are focused on standing by our allies here and ensuring the threat of the [Democratic People’s Republic of Korea] is not a threat to the Republic of Korea and certainly continue to extend nuclear deterrence as we have before,” he said.

In recent years, the U.S. and South Korea have discussed how to integrate U.S. nuclear weapons and South Korean conventional weapons.

Hegseth visits South Korea

U.S. Defense Secretary Pete Hegseth, left, shakes hands with South Korean Defense Minister Ahn Gyu-back for a photo at the 57th Security Consultative Meeting at the Defense Ministry in Seoul, South Korea, Tuesday, Nov. 4, 2025. (AP)

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South Korea has no nuclear weapons, and Ahn denied speculation that it could eventually seek its own nuclear weapons program or that it is pushing for redeployment of U.S. tactical weapon weapons that were removed from South Korea in the 1990s.

Earlier Tuesday, South Korea’s Joint Chiefs of Staff said the country detected North Korea test-firing around 10 rounds of artillery toward its western waters on Monday, shortly before Hegseth arrived at an inter-Korean border village with Ahn to begin his two-day visit to South Korea.

Hegseth visited the Demilitarized Zone on the border with North Korea earlier in the week.

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Vetoes, reforms: Main takeaways from Euronews’ Enlargement summit

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Vetoes, reforms: Main takeaways from Euronews’ Enlargement summit

Amid a shifting geopolitical landscape and rising global instability, European Union enlargement has re-emerged as one of the bloc’s defining strategic questions. At a high-level Euronews summit bringing together EU officials and leaders from candidate countries, the message was clear: expanding the Union is no longer a matter of choice, but of necessity.

But the unique gathering also highlighted the mounting frustrations on both sides with the enlargement process, in particular with the use of vetoes.

Here is what you need to know about Euronews’ first such summit.

Enlargement is a geopolitical necessity

All the leaders present at the summit agreed that enlargement is a geopolitical necessity for the EU.

European Commission Vice-President António Costa said the EU can no longer delay bringing new members into the bloc.

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“The current geopolitical context makes this priority all the more urgent and necessary for the European Union,” he said. “In an age of geopolitical uncertainty and economic instability, an enlarged European Union means a safer, stronger and more peaceful Europe, at home and in the world. Enlarging is the best investment we can make today for our future.”

Maia Sandu, whose country Moldova is particularly vulnerable to interference from Moscow given part of its territory broke away to form the pro-Russia region of Transnistria, stressed that failing to let new members in leaves the door open for competing powers to exert their influence.

“If you don’t support us to stay a democratic country and participate in the stability and security of the region, then we’re going to be used by Russia and are going to be used against Ukraine and the EU countries in the region,” she warned.

Montenegro’s Deputy Prime Minister for Foreign and European Affairs, Filip Ivanović, echoed the sentiment, calling enlargement “the best policy the EU ever had.” He added, “It will transform the EU into a geopolitical player — Montenegro wants to play a role in this.”

Vetoes amount to ‘bullying’ and are ‘not fair’

A key frustration for the leaders was the use of national vetoes by individual EU member states to stall the enlargement process.

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Hristijan Mickoski, the prime Minister of North Macedonia, described it as a form of “bullying.”

North Macedonia’s path toward European Union membership has been one of the most protracted and politically complex in the bloc’s history. The country first applied for EU membership in 2004 and was granted candidate status in 2005, but its progress was long stalled by disputes with neighboring countries.

Bulgaria is currently blocking its progress, demanding new changes to the country’s constitution over historical and linguistic issues.

“We would like to see ourselves at the table in Brussels…If somebody dares to bully someone else who wants to join the club, why should the other be silent? This is not normal,” Mickoski said.

“It obviously works…and that’s why it will occur again and again,” he warned.

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Marta Kos, the enlargement commissioner, also said it was “not fair” for member states, who have to unanimously approve each step of the accession process, to wield vetoes.

“You notice the same member state has given a green light to give candidate status to Ukraine, has given the green light to start negotiations, but now it is blocking,” she said, referring to Hungary.

“This is not fair and this is not how I see European solidarity and geopolitical need,” she added.

She said that one workaround would be for the Commission and aspiring member states to carry on doing the technical work behind the scene, even if the formal opening of negotiation clusters hasn’t happened so that they are closed quickly when member states do give their backing.

Full-fledged membership or nothing

Leaders from candidate countries have pushed back firmly against proposals suggesting that future EU members could be subjected to a “probation period” when they join during which they might not have the full veto rights.

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Ukrainian President Volodymyr Zelenskyy said such an approach would contradict the very principles of equality and unity on which the EU was founded.

“It seems to me it’s very important that Ukraine could get such a treatment as equals,” he said. “If we speak about EU membership, it has to be fully pledged. You cannot be semi- or demi-member of the EU.”

Montenegro’s Ivanović also described the idea of accession without full rights as “hardly acceptable.”

His small country of 620,000 inhabitants has already been “on trial for the past 15 years,” he said. “Once we close all the negotiation chapters, as far as I’m concerned, the trial is over.”

Kos also voiced clear opposition, saying: “No, I’m strictly against, but this is my personal opinion”.

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Internal reforms: transitional period, accession treaties

The Commission’s enlargement tsar, who in the coming weeks is expected to present a review onpre-enlargement reforms and policy for the EU to undertake before it accepts new members, instead said the bloc should make better use of accession treaties through which “we can define transitional periods”.

Poland’s accession treaty, for instance, included a transition period related to agricultural land.

“We have transitional periods, we have different areas where we really can talk about, to enable a full integration and really strong EU,” she said.

Countries push back against Commission criticism

Some leaders from candidate countries have pushed back against what they see as overly harsh or one-sided criticism in the European Commission’s latest Enlargement Package, defending their domestic progress and arguing for greater understanding of their political contexts.

Ukrainian President Volodymyr Zelenskyy seemingly took offence to a line in the report that flags “recent negative trends”, including “a pressure on the specialised anti-corruption agencies and civil society”.

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He said that despite fighting a full-scale war, Ukrainian authorities “have implemented the widest, the broadest anti-corruption infrastructure in Europe.”

”I don’t know about any country who has that many anti-corruption authorities… We’re doing everything possible,” he said.

Albanian Prime Minister Edi Rama, whose country was urged in the Commission’s report to provide “further efforts” to fight drug traffickers and dismantle organised criminal groups, also took offence.

“In this moment in time we accept support, we accept partnership, we accept help, but we don’t accept lectures from anyone when it comes to the fight against corruption”, Rama said.

Similarly, Serbian President Aleksandar Vučić also dismissed the Commission’s criticism of political polarisation in his country, arguing that division is a global trend rather than a uniquely Serbian problem.

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“Tell me the name of a country without deep political polarisation. I don’t know the name,” Vučić said. “Is it Romania? Bulgaria? Germany? France? Great Britain? It’s happening all over the world because of social networks. That’s how it goes in today’s world. That’s the evidence of democracy, which is key.”

The Commission also took aim at Serbia’s low alignment rate with the EU’s foreign policy, especially sanctions against Russia in response to the full-scale invasion of Ukraine, and his decision to visit Moscow to attend a military parade.

“I’m not going to justify myself for talking with someone,” Vučić said. “I believe that everybody should talk to each other.”

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