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In a statement issued on its website on 26^th July 2010, the Department of Culture, Media and Sport said, ‘ A number of the Department for Culture, Media and Sport’s (DCMS) 55 public bodies are set to be merged, abolished or streamlined as part of the Government’s drive to cut costs and increase transparency, accountability and efficiency, Culture Secretary Jeremy Hunt announced today.   Mr Hunt has proposed a number of changes, including abolishing the UK Film Council and establishing a direct and less bureaucratic relationship with the British Film Institute.  This would support front-line services while ensuring greater value for money. Government and Lottery support for film will continue… Key activities currently carried out by the UK Film Council will continue, including Lottery funding and work in support of film certification for tax purposes. DCMS will now consider options for transferring those responsibilities to other organisations. As a charity, the British Film Institute (BFI) is not within the scope of this review, but the Government is committed to its long term future. DCMS will now consider how to build a more direct relationship between the BFI and Government.’

Working Title’s Tim Bevan, the chairman of the UK Film Council, issued the following statement in response to the announcement: ‘Abolishing the most successful film support organisation the UK has ever had is a bad decision, imposed without any consultation or evaluation. People will rightly look back on today’s announcement and say it was a big mistake, driven by short-term thinking and political expediency. British film, which is one of the UK’s more successful growth industries, deserves better.

‘Our immediate priority now is to press the Government to confirm that the funding levels and core functions that are needed to underpin British film are locked-in, especially at a time when filmmakers and film companies need more support than ever as they make the challenging transition into the digital age. To that end, we will work with the DCMS over the summer to identify how they can guarantee both continuity and safe harbour for British film.’

Lord Puttnam, the President of the Film Distributors Association said, 'Today's announcement, which would appear to have come out of the blue, will take some time to digest fully. Over the past decade, the UKFC has been a layer of strategic glue that’s helped bind the many parts of our disparate industry together. On the welcome premise that government and lottery support for film will continue, I look forward to discussing ways in which a new, coherent plan for film can be developed and implemented to benefit audiences throughout the UK.'

However, not everybody was disappointed by the news:  Documentary filmmaker Chris Atkins tweeted, 'UK FILM COUNCIL ABOLISHED! Fabulous day! I wonder what 70 incompetent overpaid bureaucrats are going to do? I could use a couple of runners. It had far more misses than hits. Funded Sex Lives of Potato Men, U2 3D, 4321, Rolling Stones, St Trinian’s, I could go on...'

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