Hollywood money fuelled record £2.8bn spend on UK film production in 2025

by February 5, 2026

February 5, 2026

Close Bank of England vote could see "reversal of this week's mortgage rate increases" say brokers BROKERS have said the closer than expected vote split at this week's Bank of England (BoE) rate decision and an apparent confidence among policyholders that inflation will be back to around target from April could see "a reversal of this week's rate increases" from major lenders. One said: "Lenders have been edgy over the past week or so but we could now see Swap rates, which determine the pricing of fixed rate mortgages, start to edge down again." But while this is good news for borrowers, a money expert warned savers that "the direction of travel is clear". At its meeting ending on 4 February 2026, the Monetary Policy Committee (MPC) voted by a majority of 5–4 to maintain Bank Rate at 3.75%. Four members voted to reduce Bank Rate by 0.25 percentage points, to 3.5%. The Bank of England said that while inflation is above the 2% target currently, it is expected to fall back to around the target from April, owing to developments in energy prices including from Budget 2025. Crucially, it added that, on the basis of current evidence, Bank Rate is likely to be reduced further, caveating that the extent and timing of further easing in monetary policy will depend on the evolution of the outlook for inflation. Brokers and property experts were upbeat about the announcement and accompanying minutes, suggesting the Bank's dovish tone and vote split could see mortgage rates once again start to edge down. Shaun Sturgess, Director at Swansea-based mortgage broker, Sturgess Mortgage Solutions, said: "A closer than expected vote and dovish minutes, with policymakers seemingly confident that inflation will be back to target soon, is exactly what the doctor ordered for borrowers. "Lenders have been edgy over the past week or so but we could now see swap rates, which determine the pricing of fixed rate mortgages, start to edge down again." Chris Barry, Director at Thomas Legal, a nationwide conveyancing firm, also said the vote was much closer than many anticipated. He continued: "This data does hint that when inflation starts to play ball, as the Bank expects it to, we could quite easily see another rate cut and in the not-too-distant future. The timing could be perfect if this takes place in the usually busy spring property market". Tony Redondo, Founder at Cosmos Currency Exchange, said "the era of hikes is over, the era of timing the next cut has begun", adding "the dovish hold signals the Bank of England is on the brink of a pivot". He continued: "While a hold at 3.75% was the consensus, the razor-thin majority suggests a regime shift is imminent. A Spring base rate cut is now firmly on the cards. "By highlighting April’s inflation target return, the BoE has set a clear 'data trigger'. If April data confirms this cooling, a May cut is the base case, though March remains a live possibility." Babek Ismayil, CEO at homebuying platform OneDome, said the vote split bodes well for borrowers: "A hold from the Bank of England was expected but the closeness of the vote and the Bank's apparent confidence that inflation will be back around target in a couple of months bodes well for borrowers. "It will be interesting to see how Swap markets react to this announcement, but there is every chance they may edge down, which could see mortgage rates follow suit." Jack Tutton, Director at SJ Mortgages, agreed: "The fact that the vote was so close will prompt the markets into thinking that a further cut to the base rate is coming sooner than thought. In turn, we could start to see mortgage rates falling again in the coming weeks." Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, said the cut could see lenders backtrack: "This close vote, perhaps closer than many were expecting after the rise in inflation, could see a reversal of this week's mortgage rate increases. "The Bank of England seems confident that inflation will be back around target from April and that is promising for a cut in the Spring, which will help borrowers around the country." But one broker was less convinced. Rohit Kohli, Director at The Mortgage Stop, said: "The close split is a clear warning for borrowers banking on continuous cuts. A 5-4 vote is tight by MPC standards and shows how fragile the outlook remains. "Inflation may drift back towards 2% on forecasts, but it has been stubborn, and it would not take much — from energy prices to fiscal shifts — to push it off course. "We already have clients who held off in early January when rates were falling, expecting further reductions. Some are probably now going to regret that decision. Rates have edged back up and those borrowers are scrambling to secure deals at higher levels than were available weeks ago. "A further wait-and-see approach ahead of the next MPC meeting could prove costly. Not everyone will want to roll the dice on that." Meanwhile, Antonia Medlicott, Founder & MD at Investing Insiders, warned savers about what looks set to come. She said: "The closeness of this vote shows that the direction of travel is clear. Savers should act now to ensure they're not repeating the same mistake too many UK savers did last year when they lost billions in purchase power by leaving their money in accounts paying below-inflation interest rates. "Be prepared to look online for the best rates, as the high street is rarely where you'll find them."

Investment in UK film production hit a record £2.8bn last year, driven overwhelmingly by Hollywood studios and global streaming platforms, according to new figures from the British Film Institute (BFI).

However, industry leaders are warning that growth is likely to slow in 2026 as Netflix shifts production back to the United States amid political pressure and plans for a blockbuster acquisition.

The BFI said that 91 per cent of the £2.78bn spent on UK film production in 2025 came from “inward investment”, funding from studios and streamers based outside the UK. The total marks a 23 per cent increase year on year and represents the highest level of film production spend since the BFI began tracking the data in 2002.

The surge was fuelled by a run of major international productions choosing the UK as a filming base, including Avengers: Doomsday, Super Girl and four separate biopics focusing on members of The Beatles. More than £2.5bn of total film spend came from US-based companies such as Netflix and Amazon, up 30 per cent on the previous year.

High-end television production also remained strong. Spending on UK-made TV shows with budgets of more than £1m per episode rose by over 7 per cent to £4bn, again dominated by US-backed platforms. Netflix, Amazon Prime Video and Disney+ accounted for around 80 per cent of that total, backing global hits including Bridgerton, Slow Horses, Outlander and The Thursday Murder Club.

UK broadcasters showed modest recovery after a difficult period. Investment from ITV, Sky, Channel 4 and Channel 5 edged up to £688m, following a five-year low in 2024, but remained well below historic highs.

In total, combined spending on UK film and high-end TV production reached £6.8bn in 2025, up 13 per cent on the year. Yet despite the strong headline numbers, the outlook has become more uncertain.

Netflix co-chief executive Ted Sarandos has confirmed that the streaming giant is actively pulling projects back to the US to support domestic job creation, as it seeks regulatory approval for its proposed $82.7bn (£59bn) takeover of Warner Bros Discovery. Speaking before a US Senate antitrust subcommittee this week, Sarandos said new tax incentives in New Jersey had made filming in the US more attractive than overseas locations, including the UK.

He revealed that since the incentives were approved, Netflix had redirected 11 projects into the US, seven of which had originally been planned for the UK. Sarandos said the company was “very invested in creating more American jobs” and keeping production at home, signalling increased competition for UK studios as governments race to offer more generous incentives.

While the UK remains one of the world’s most attractive destinations for large-scale film and TV production, thanks to its talent base, infrastructure and tax reliefs, industry figures are increasingly concerned that geopolitical pressure and subsidy competition could temper growth after a record-breaking year.

Hollywood money fuelled record £2.8bn spend on UK film production in 2025

Investment in UK film production hit a record £2.8bn last year, driven overwhelmingly by Hollywood studios and global streaming platforms, according to new figures from the British Film Institute (BFI).

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