The article summarises key aspects of government intervention in the British film industry since the election of a Labour government in 1997. The process of amalgamating a variety of existing institutions (including British Screen, the British Film Commission and the Arts Council's Lottery Film Department) into the new UK Film Council is described and the implications for developments in the English regions is considered. The issue of the continuing American dominance of the industry is explored and this is related to the contentious concept of an economically 'sustainable' domestic industry. In conclusion it is proposed that more careful attention be given to the cultural and educational implications of current policy.

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