Directors’ cut: the end of UKFC

In abolishing the UK Film Council, Jeremy Hunt has shown himself to be ignorant of history. David Pu

On 15 June 1990, I was one of 20 senior representatives of the British film world invited to 10 Downing Street by Margaret Thatcher to discuss the parlous state of the industry and to find out what her government might be able to do about it. Sitting alongside the prime minister was Lew Wasserman, head of Universal Studios and a man who, over almost six decades, had deployed a mix of business acumen and political guile to establish himself as by far the most powerful man in Hollywood.

It was Ronald Reagan who had recommend­ed that Wasserman, who was once his agent, be invited. Reagan used to say, "Lew, if only you'd got me a longer-running TV series, I wouldn't have had to run for president!" For some years, Reagan, a fan of British movies, had tried to persuade Mrs Thatcher that this was an industry with a lot to offer.

The seminar generated a series of proposals that eventually resulted in the establishment of a new quango, the British Film Commission, along with a £5m European Co-Production Fund and a dedicated tax break. A few years later, at the urging of Richard Attenborough, the then prime minister, John Major, agreed to National Lottery funds being used to support film production.

In retrospect, that seminar in 1990 can be seen as the beginning of the British film industry's long march back from the wilderness. Ironically, it was Thatcher's government that had cast the industry into the wilderness in the first place, with a series of hasty decisions driven very largely by ideological prejudice.

One of the most striking, and to me distressing, things about the coalition government's recent decision to abolish the Film Council is that it appears to have been taken without any examination of the way support for British cinema evolved over many decades. For it was the Conservatives who first introduced government support for the industry with the Cinematograph Films Act of 1927, which created an advisory committee and introduced quotas on distributors and cinemas.

However, it was only after the Second World War that the concept of public subsidy for film, and the need for a dedicated, independent and expert body to administer and disburse such funding, were recognised. It was Harold Wilson, then president of the Board of Trade, who was the moving spirit behind the initiative to create an organisation that would give "improved access to finance to qualified independent producers during the difficult period of postwar transition".

In 1949, Wilson's efforts led to the Cinema­tograph Film Production (Special Loans) Act and with it the creation of the National Film Finance Corporation, which can in many respects be seen as a forerunner of the UK Film Council. Its mandate was to support people who

. . . while having reasonable expectations of being able to arrange for the production and distribution of cinematograph films on a commercially successful basis, are not, for the time being, in a position to obtain adequate financial facilities for the purpose on reasonable terms from an appropriate source.

The first chairman of the NFFC was Lord Reith, and the corporation was able to borrow money from the Board of Trade which was then loaned to producers. Alexander Korda's company British Lion was an early and significant client. At the time, the creation of the NFFC led to predictable gibes from opposition benches about "casting couches across Whitehall", but the body quickly proved its worth.

It was supposed to have a lifespan of just five years but, following the Conservatives' election victory in 1951, and despite a broad antipathy to state intervention, Winston Churchill (a great film fan) set about strengthening the NFFC and putting it on a secure long-term footing. In 1952, the Tories passed legislation enabling the corporation to borrow an extra £2m from sources beyond the Board of Trade, and in 1954 further legislation extended the NFFC's lifespan - as well as introducing a scheme enabling loans to be written off.

It was also the Conservatives, under Harold Macmillan, who were responsible for the next significant piece of film legislation, the impact of which would be felt for almost three decades. And once again, they chose to build upon the foundations laid by Harold Wilson. In 1949, a Treasury official named Wilfred Eady had proposed an ingenious voluntary scheme for reducing the impact of the entertainments tax on cinema owners, while also rewarding producers of successful British films. Eady proposed that a proportion of the ticket price should be set aside, with half retained by cinemas (in effect a rebate on the tax) and half divided among producers of British films in proportion to the UK box-office takings that their movies achieved.

The Cinematograph Films Act 1957 placed the Eady Levy on a statutory basis. It specified that one-twelfth of the price of a cinema ticket would be paid to the British Film Fund Agency, and that the payments would be allocated to support the NFFC and the Children's Film Foundation. Support was later added for the British Film Institute Production Board and the National Film School.

From 1957 to 1984, the landscape of film policy remained broadly stable, underpinned by a cross-party consensus. To be sure, the Eady Levy had its fair share of critics - not least the cinema owners who believed it helped to drag down admissions, when it was really the impact of television, along with their appalling lack of investment in the fabric of the cinemas themselves, which led to the downturn.

During that period, the NFFC was well managed, productive and relatively well funded. It was also responsible for launching the careers of many outstanding British cinematic talents, including Alan Parker and Ridley Scott, both of whom got an early boost from the NFFC. A film that I produced called Stardust (1974) made sufficient money to encourage the corporation to invest in the making of Bugsy Malone (1976), directed by Parker. As a direct consequence of the success of that film, Paramount in the US offered to put $1m into the next project I was hoping to produce. That was The Duellists (1977), Ridley Scott's first feature.

On the basis of Paramount's offer, I was once again able to secure the balance of the finance from the NFFC, resulting in what Scott recently referred to as "a personal landmark". So, the support from the NFFC, along with that he'd received as a student at West Hartlepool College of Art and subsequently at the Royal College of Art in London, provides a vivid demonstration of the way in which public subsidy can nourish outstanding creative talents, offering them space in which to demonstrate their ability and, in doing so, providing the catalyst for hundreds of millions of pounds of inward investment.

But despite, or possibly because of, the state- owned corporation's comparative success, in 1984, Thatcher's government published a white paper in which it proposed to do away with both the NFFC and the Eady Levy. At the same time, the government introduced legislation abolishing the capital allowances which, following a decision by the Inland Revenue in 1979, had been used as a form of tax relief by the film production sector.

This combination of measures was regarded as a disaster by large parts of the industry (with the notable exception of the UK cinema owners). Even the Conservative minister Kenneth Baker confided to me at the time that he had severe doubts about the wisdom of the proposals.

The abolition was fiercely opposed in a campaign led by the Association of Independent Producers, which described the substitute proposals as little more than "interim measures and vague hopes for the future". Ignoring the criticism, in 1986 the Tory government created British Screen Finance, a private company to support British film-makers, with shareholders including Channel 4 and the Rank Organisation, topped up by an annual government grant of £1.5m. It quickly developed a decent track record of investment, helping to support such films as Stephen Frears's Prick Up Your Ears in 1987 and Mike Leigh's High Hopes in 1988. But its budget was far too small to enable it to make a meaningful difference to the overall levels of production. As a result, investment in British films declined from roughly £275m in 1984 to £137m by the end of 1990.

These were barren years for British film production. However, a meeting between a thoroughly enlightened arts minister, Richard Luce, and Richard Attenborough led to the idea for that Downing Street seminar. And together with John Major's subsequent decision to allow Lottery money to be used for film production, the meeting helped to put the industry on the road to recovery.

Consequently, when Labour assumed power in May 1997, the landscape for British cinema looked very different from the way it had been in 1990, before the Downing Street seminar. But film policy continued to lack any real strategic coherence. To remedy this, the incoming secretary of state, Chris Smith, set up a "film policy review" chaired by Stewart Till, then president of Polygram Filmed Entertainment. Among its many recommendations was the proposal to create a unifying body with strategic responsibility for film, which in turn led to the creation, in 2000, of the UK Film Council. (The idea for a "British Film Auth­ority" had in fact been proposed as early as 1976, by a working party created by none other than Harold Wilson, but it had never been taken further.)

Tragically, instead of building on everything that has been learned, the present government has set about destroying the UK Film Council - to little purpose and with even less of a plan. In doing so, the Culture Secretary, Jeremy Hunt, would appear to have acted without any sense of the role that his party, and Margaret Thatcher and John Major in particular, played in breathing new life into an industry that, in 1990, had still to recover from the blow dealt to it by the abolition of the Eady Levy and the withdrawal of tax allowances.

At some point, long after Hunt and his team have left the Department for Culture, Olym­pics, Media and Sport, the work of rebuilding a coherent film policy, organised and controlled by a single body, will have to start all over again. It would be extremely helpful, therefore, if the Secretary of State were prepared to debate with me and others in a public forum, so that we might better understand why he and his coalition partners, in making their decision to demolish the UK Film Council, failed to take account of any of the lessons of recent history.

David Puttnam is a former film producer and a Labour peer

This article first appeared in the 11 October 2010 issue of the New Statesman, Melvyn Bragg guest edit

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Why Jeremy Corbyn is a new leader for the New Times

In an inspired election campaign, he confounded his detractors and showed that he was – more than any other leader – in tune with the times.

There have been two great political turning points in postwar Britain. The first was in 1945 with the election of the Attlee government. Driven by a popular wave of determination that peacetime Britain would look very different from the mass unemployment of the 1930s, and built on the foundations of the solidaristic spirit of the war, the Labour government ushered in full employment, the welfare state (including the NHS) and nationalisation of the basic industries, notably coal and the railways. It was a reforming government the like of which Britain had not previously experienced in the first half of the 20th century. The popular support enjoyed by the reforms was such that the ensuing social-democratic consensus was to last until the end of the 1970s, with Tory as well as Labour governments broadly operating within its framework.

During the 1970s, however, opposition to the social-democratic consensus grew steadily, led by the rise of the radical right, which culminated in 1979 in the election of Margaret Thatcher’s first government. In the process, the Thatcherites redefined the political debate, broadening it beyond the rather institutionalised and truncated forms that it had previously taken: they conducted a highly populist campaign that was for individualism and against collectivism; for the market and against the state; for liberty and against trade unionism; for law and order and against crime.

These ideas were dismissed by the left as just an extreme version of the same old Toryism, entirely failing to recognise their novelty and therefore the kind of threat they posed. The 1979 election, followed by Ronald Reagan’s US victory in 1980, began the neoliberal era, which remained hegemonic in Britain, and more widely in the West, for three decades. Tory and Labour governments alike operated within the terms and by the logic of neoliberalism. The only thing new about New Labour was its acquiescence in neoliberalism; even in this sense, it was not new but derivative of Thatcherism.

The financial crisis of 2007-2008 marked the beginning of the end of neoliberalism. Unlike the social-democratic consensus, which was undermined by the ideological challenge posed by Thatcherism, neoliberalism was brought to its knees not by any ideological alternative – such was the hegemonic sway of neoliberalism – but by the biggest financial crisis since 1931. This was the consequence of the fragility of a financial sector left to its own devices as a result of sweeping deregulation, and the corrupt and extreme practices that this encouraged.

The origin of the crisis lay not in the Labour government – complicit though it was in the neoliberal indulgence of the financial sector – but in the deregulation of the banking sector on both sides of the Atlantic in the 1980s. Neoliberalism limped on in the period after 2007-2008 but as real wages stagnated, recovery proved a mirage, and, with the behaviour of the bankers exposed, a deep disillusionment spread across society. During 2015-16, a populist wave of opposition to the establishment engulfed much of Europe and the United States.

Except at the extremes – Greece perhaps being the most notable example – the left was not a beneficiary: on the contrary it, too, was punished by the people in the same manner as the parties of the mainstream right were. The reason was straightforward enough. The left was tarnished with the same brush as the right: almost everywhere social-democratic parties, albeit to varying degrees, had pursued neoliberal policies. Bill Clinton and Tony Blair became – and presented themselves as – leaders of neoliberalism and as enthusiastic advocates of a strategy of hyper-globalisation, which resulted in growing inequality. In this fundamental respect these parties were more or less ­indistinguishable from the right.

***

The first signs of open revolt against New Labour – the representatives and evangelists of neoliberal ideas in the Labour Party – came in the aftermath of the 2015 ­election and the entirely unpredicted and overwhelming victory of Jeremy Corbyn in the leadership election. Something was happening. Yet much of the left, along with the media, summarily dismissed it as a revival of far-left entryism; that these were for the most part no more than a bunch of Trots. There is a powerful, often overwhelming, tendency to see new phenomena in terms of the past. The new and unfamiliar is much more difficult to understand than the old and familiar: it requires serious intellectual effort and an open and inquiring mind. The left is not alone in this syndrome. The right condemned the 2017 Labour Party manifesto as a replica of Labour’s 1983 manifesto. They couldn’t have been more wrong.

That Corbyn had been a veteran of the far left for so long lent credence to the idea that he was merely a retread of a failed past: there was nothing new about him. In a brilliant election campaign, Corbyn not only gave the lie to this but also demonstrated that he, far more than any of the other party leaders, was in tune with the times, the candidate of modernity.

Crises, great turning points, new conjunctures, new forms of consciousness are by definition incubators of the new. That is one of the great sources of their fascination. We can now see the line of linkage between the thousands of young people who gave Corbyn his overwhelming victory in the leadership election in 2015 and the millions of young people who were enthused by his general election campaign in 2017. It is no accident that it was the young rather than the middle-aged or the seniors who were in the vanguard: the young are the bearers and products of the new, they are the lightning conductors of change. Their elders, by contrast, are steeped in old ways of thinking and doing, having lived through and internalised the values and norms of neoliberalism for more than 30 years.

Yet there is another, rather more important aspect to how we identify the new, namely the way we see politics and how politics is conceived. Electoral politics is a highly institutionalised and tribal activity. There have been, as I argued earlier, two great turning points in postwar politics: the social-democratic era ushered in by the 1945 Labour government and the neoliberal era launched by the Tory government in 1979.

The average Tory MP or activist, no doubt, would interpret history primarily in terms of Tory and Labour governments; Labour MPs and activists would do similarly. But this is a superficial reading of politics based on party labels which ignores the deeper forces that shape different eras, generate crises and result in new paradigms.

Alas, most political journalists and columnists are afflicted with the same inability to distinguish the wood (an understanding of the deeper historical forces at work) from the trees (the day-to-day manoeuvring of parties and politicians). In normal times, this may not be so important, because life continues for the most part as before, but at moments of great paradigmatic change it is absolutely critical.

If the political journalists, and indeed the PLP, had understood the deeper forces and profound changes now at work, they would never have failed en masse to rise above the banal and predictable in their assessment of Corbyn. Something deep, indeed, is happening. A historical era – namely, that of neoliberalism – is in its death throes. All the old assumptions can no longer be assumed. We are in new territory: we haven’t been here before. The smart suits long preferred by New Labour wannabes are no longer a symbol of success and ambition but of alienation from, and rejection of, those who have been left behind; who, from being ignored and dismissed, are in the process of moving to the centre of the political stage.

Corbyn, you may recall, was instantly rejected and ridiculed for his sartorial style, and yet we can now see that, with a little smartening, it conveys an authenticity and affinity with the times that made his style of dress more or less immune from criticism during the general election campaign. Yet fashion is only a way to illustrate a much deeper point.

The end of neoliberalism, once so hegemonic, so commanding, is turning Britain on its head. That is why – extraordinary when you think about it – all the attempts by the right to dismiss Corbyn as a far-left extremist failed miserably, even proved counterproductive, because that was not how people saw him, not how they heard him. He was speaking a language and voicing concerns that a broad cross-section of the public could understand and identify with.

***

The reason a large majority of the PLP was opposed to Corbyn, desperate to be rid of him, was because they were still living in the neoliberal era, still slaves to its ideology, still in thrall to its logic. They knew no other way of thinking or political being. They accused Corbyn of being out of time when in fact it was most of the PLP – not to mention the likes of Mandelson and Blair – who were still imprisoned in an earlier historical era. The end of neoliberalism marks the death of New Labour. In contrast, Corbyn is aligned with the world as it is rather than as it was. What a wonderful irony.

Corbyn’s success in the general election requires us to revisit some of the assumptions that have underpinned much political commentary over the past several years. The turmoil in Labour ranks and the ridiculing of Corbyn persuaded many, including on the left, that Labour stood on the edge of the abyss and that the Tories would continue to dominate for long into the future. With Corbyn having seized the political initiative, the Tories are now cast in a new light. With Labour in the process of burying its New Labour legacy and addressing a very new conjuncture, then the end of neoliberalism poses a much more serious challenge to the Tories than it does the Labour Party.

The Cameron/Osborne leadership was still very much of a neoliberal frame of mind, not least in their emphasis on austerity. It would appear that, in the light of the new popular mood, the government will now be forced to abandon austerity. Theresa May, on taking office, talked about a return to One Nation Toryism and the need to help the worst-off, but that has never moved beyond rhetoric: now she is dead in the water.

Meanwhile, the Tories are in fast retreat over Brexit. They held a referendum over the EU for narrowly party reasons which, from a national point of view, was entirely unnecessary. As a result of the Brexit vote, the Cameron leadership was forced to resign and the Brexiteers took de facto command. But now, after the election, the Tories are in headlong retreat from anything like a “hard Brexit”. In short, they have utterly lost control of the political agenda and are being driven by events. Above all, they are frightened of another election from which Corbyn is likely to emerge as leader with a political agenda that will owe nothing to neoliberalism.

Apart from Corbyn’s extraordinary emergence as a leader who understands – and is entirely comfortable with – the imperatives of the new conjuncture and the need for a new political paradigm, the key to Labour’s transformed position in the eyes of the public was its 2017 manifesto, arguably its best and most important since 1945. You may recall that for three decades the dominant themes were marketisation, privatisation, trickle-down economics, the wastefulness and inefficiencies of the state, the incontrovertible case for hyper-globalisation, and bankers and financiers as the New Gods.

Labour’s manifesto offered a very different vision: a fairer society, bearing down on inequality, a more redistributive tax system, the centrality of the social, proper funding of public services, nationalisation of the railways and water industry, and people as the priority rather than business and the City. The title captured the spirit – For the Many Not the Few. Or, to put in another way, After Neoliberalism. The vision is not yet the answer to the latter question, but it represents the beginnings of an answer.

Ever since the late 1970s, Labour has been on the defensive, struggling to deal with a world where the right has been hegemonic. We can now begin to glimpse a different possibility, one in which the left can begin to take ownership – at least in some degree – of a new, post-neoliberal political settlement. But we should not underestimate the enormous problems that lie in wait. The relative economic prospects for the country are far worse than they have been at any time since 1945. As we saw in the Brexit vote, the forces of conservatism, nativism, racism and imperial nostalgia remain hugely powerful. Not only has the country rejected continued membership of the European Union, but, along with the rest of the West, it is far from reconciled with the new world that is in the process of being created before our very eyes, in which the developing world will be paramount and in which China will be the global leader.

Nonetheless, to be able to entertain a sense of optimism about our own country is a novel experience after 30 years of being out in the cold. No wonder so many are feeling energised again.

This article first appeared in the 15 June 2017 issue of the New Statesman, Corbyn: revenge of the rebel

Martin Jacques is the former editor of Marxism Today. 

This article first appeared in the 15 June 2017 issue of the New Statesman, Corbyn: revenge of the rebel

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