Paramount has two asks for British authorities: Approve the Warner Bros. Discovery mega-merger and slash UK tax break thresholds.
The latter request was on the agenda at the Creative Cities Convention in Liverpool on Wednesday, where Paul Testar, a drama commissioner at Paramount-owned network 5, appealed to the government to reform high-end TV tax incentives.
5 has gone from commissioning 12 hours of drama in 2019 to more than 100 hours in 2026, but the network produces many of its series overseas in locations like Malta and Lithuania, where it can access tax breaks that are more competitive than those on home soil.
Testar told Creative Cities delegates that “tens of millions of business” could return to the UK if the tax break, which pays out around 25% for shows costing more than £1M ($1.36M) per hour, was halved to £500,000.
He added that this was part of 5’s plans to continue growing its drama slate, which includess Yorkshire-produced hit All Creatures Great and Small. “It has become harder to make drama generally, but we have found a way to grow every year, and we’re continuing to do so,” Testar explained.
Testar’s intervention is not the first time a 5 executive has commented on tax breaks, and the network’s position enjoys broad support across the British scripted community. The UK government has so far declined to heed the call of the industry, however. The 2025 budget delivered nothing in terms of tax credit demands.
Meanwhile, Paramount executives will be closely watching how the UK’s antitrust authority handles its $110 billion merger with Warner Bros. Discovery. The Competition and Markets Authority sought comments from interested parties last month — a first step towards commencing a deeper examination of a deal that will reshape the global media landscape.
Paramount Skydance CEO David Ellison visited the UK earlier this year as part of a charm offensive of European regulators. He met with UK culture secretary Lisa Nandy, as well as prominent European creatives.