The UK's higher tax credits are starting to make an impact

The recent spike in BFI applications for films budgeted under £20m, as reported by Screen Daily, is a promising sign for the UK’s indie film sector. It follows the government’s greenlight of the Independent Film Tax Credit (IFTC), which offers a significant uplift in relief for lower-budget films, up to 53% for those under £15m.

The new tax credit doesn’t fix everything, but it does address a long-standing imbalance: many ambitious, mid-size indie projects, particularly those that don’t fit into commercial genre boxes, have struggled to close their financing. With production costs rising and distribution uncertain, this fiscal support could be the push that keeps these projects alive.

We’ve already seen what’s possible when indie films with modest budgets are given room to breathe. Charlotte Regan’s Scrapper, backed by BBC Film and BFI, was a joyful and emotionally honest debut that took home Sundance’s Grand Jury Prize and quietly built a strong following. Rye Lane, Raine Allen-Miller’s South London rom-com, burst with visual flair and fresh perspective.

These are not outliers; they’re indicators of what’s achievable when new voices are trusted. Both films were led by women directors, both celebrated specific, often overlooked communities, and both challenged the idea that low-budget means low ambition.

It’s worth noting that the commercial appetite for this kind of cinema still exists.

We’re encouraged by this news because it reflects renewed optimism. More producers are taking chances on new writers and directors. More investors are considering projects that wouldn’t have fit their remit a year ago.

If the IFTC helps build momentum behind these kinds of stories, then it’s a step in the right direction. Not every project will break out, but with the right conditions, more will have the chance to try.