<Interior of Tyneside Cinema, an independent theater. Image courtesy of the Tyneside Cinema website>
Across the UK, many independent cinemas play a key role not only in satisfying the diverse cinematic appetites of local film lovers but also in serving as cultural hubs for their communities. However, numerous British media outlets have reported on the growing financial difficulties these cinemas face due to rising costs driven by the COVID-19 pandemic and the subsequent surge in energy prices caused by the war between Russia and Ukraine. These reports have raised increasing concern about the future of independent cinemas. This report aims to examine the current situation of local independent cinemas in the UK, highlight exemplary cases of cinema operations, and review relevant government support policies. The content herein is based on reports from British media, as well as information from the British Film Institute (BFI) and UK government websites.
The Reality of Independent Cinemas
There is no exact statistic on the total number of independent cinemas in the UK. However, considering that 209 cinemas received cultural recovery funding from the government between 2021 and March 2022 – estimated to be about 78% of all independent cinemas – there were likely around 268 independent cinemas in 2022.
Following the COVID-19 outbreak and the energy price hikes due to the Russia-Ukraine war, many independent cinemas have faced financial crises. This, combined with a sluggish return of audiences post-pandemic, has led some cinemas to temporarily shut down or permanently close. This suggests a likely decline in the total number of independent cinemas since 2022.
Media reports about the closures of long-standing cinemas that have served their communities for decades further highlight the challenges and stir public concern about the future of such venues. Below are some examples that illustrate the tough conditions facing independent cinemas in the UK.
The Electric Cinema, located in a historic district of Birmingham, was the first purpose-built cinema in the UK, opening in 1909. Despite being the country's longest-running independent cinema, it suddenly closed in February 2024. The closure triggered redevelopment concerns for the area, leading to campaigns to preserve the district, which includes the historic theater, the Electric Cinema, and nearby pubs.
Tyneside Cinema in Newcastle, the only independent cinema in the northeast of England and the last remaining “showreel” theater in the country, is also struggling. Andrew Simpson, the cinema's head of film programming, described the future as “bleak,” noting that a 300% increase in utility costs in 2024 left a massive budget hole. Audience numbers are down approximately 40% compared to pre-COVID levels.
Watershed, the largest independent cinema in Bristol, is also experiencing financial hardship. Post-COVID, audience numbers have dropped by around 20%, while costs have increased by 20% due to rising utility prices. Clare Reddington, CEO of Watershed, warned that funding from the Arts Council England and the BFI may no longer be sufficient to withstand ongoing inflation, highlighting the cinema's precarious situation.
The struggles of these local cinemas reflect a nationwide crisis among small UK cinemas. While some, like Tyneside and Watershed, manage to keep operating despite hardships, many have not survived. In addition to the Electric Cinema, Wolverhampton's The Lighthouse and Edinburgh's Filmhouse both shut down in 2022.
Government Support Policies for Independent Cinemas
To support independent cinemas during the COVID-19 crisis, the UK government introduced emergency aid in 2020. A key part of this temporary package, the Culture Recovery Fund for Independent Cinemas, became a lifeline for financially struggling cinemas. This special program ended in 2022 as the pandemic subsided. Beyond this exceptional initiative, ongoing support for independent cinemas is primarily provided through the BFI. The BFI administers several funds to assist cinemas, including the BFI National Lottery Audience Projects Fund, the BFI Film Audience Fund, and BFI National Lottery Open Cinemas.
Conclusion
According to the UK Cinema Association, the cinema industry experienced steady growth from 2010 to 2020, with a 15% increase in the number of cinemas. However, this trend reversed after 2020 due to the pandemic and soaring utility costs – a pattern that has heavily impacted independent cinemas.
The severity of the crisis is reflected in a survey conducted by the Independent Cinema Office (ICO) in September 2023, targeting independent cinemas, small cinema chains, and multi-arts venues. Among the 157 respondents:
In this climate, half of the respondents stated that they would need public subsidies, VAT reductions, and government financial support to keep operating. The ICO announced plans to submit these proposals to the UK Parliament’s Culture, Media and Sport Committee during an official inquiry into British film and television in October 2023.
As of August 2024, however, the UK government has not announced any new support measures for independent cinemas. Phil Clapp, head of the UK Cinema Association, expressed gratitude for the government’s financial assistance in early 2023 when energy prices peaked. Yet, he lamented the sudden end of this support in March 2023, noting that many small cinemas are now struggling. These short-term policies may address immediate issues, but the survival of independent cinemas ultimately depends on systematic, long-term governmental support.
The detailed report “Current State and Support Policies for Local Independent Cinemas in the UK,” featured in KOFIC Correspondent Report 2024_Vol.37, is available on the Korean Film Council's policy research board.
Written by Choi Sang-hee, UK Correspondent for the Korean Film Council
