ITV to slash £30m from programming budget as UK film and TV production spend plunges by £2.08bn

ITV has announced plans to make £30m in “temporary” savings, including £25m in content and £5m elsewhere in the business, as UK production spend drops.

The broadcaster, which airs I’m a Celebrity … Get Me Out of Here!, expects advertising revenues to fall between 5% and 10% in the final quarter of the year.

This decision comes amid a backdrop of ditched commissions, falling advertising sales, and job reductions across the wider television and streaming industry.

ITV stated that full-year ad sales are projected to drop between 2% and 3%, despite the typically busy Christmas season for broadcasters.

The programming cuts will primarily affect small external commissions, with many being pushed into 2027, according to industry understanding of the move.

Separately, the British Film Institute (BFI) revealed that spending on UK film and high-end TV shows had plunged by £2.08bn year on year.

The BFI figures showed that £5.2bn was spent by domestic and international broadcasters, Hollywood studios, and streamers in the year to the end of September.

This represents a 28% decrease on the £7.26bn spent in the same period in 2025, a record year that included major productions.

Notable 2025 productions included Avengers: Doomsday, Spider-Man: Brand New Day, and the first instalment of the Harry Potter TV series.

A spokesperson for the BFI said: “The figures are the result of a complex picture, ranging from significant shifts in the global industrial context through to increased competitiveness [for productions] from other international territories, and set against a backdrop of a strong [2025].”

The spokesperson added: “This is obviously something we and the British Film Commission are looking at very closely.”

The latest figures are classified as “first reported,” with the BFI typically revising up spending levels as it receives more information over the coming months.

The BFI noted that final figures for 2025 were revised up by £900m from their initial “first reported” level.

However, with the latest provisional figures showing a more than £2bn plunge in investment, 2026 is on track to be a dismal year for the UK production industry.

Carolyn McCall, ITV’s chief executive, said demand for ads had weakened because of “continuing broader macroeconomic uncertainty” and “increased digital advertising on global streaming platforms.”

She also cited new rules this year that imposed a 9pm watershed on TV advertising for less healthy food.

Shares in ITV, which are listed on London’s FTSE 250 index, dropped almost 4% in trading on Wednesday.

The company has lost about a fifth of its market value since the start of the year, reflecting ongoing commercial pressures.

The business has struggled in recent years to keep up with deep-pocketed streaming companies such as Netflix and YouTube.

These platforms have muscled in on traditional media’s audiences and commercial revenue, intensifying competition for viewer attention.

Other mainstream broadcasters are also struggling, with the BBC intending to shed as many as 2,000 jobs and Channel 4 planning layoffs.

ITV indicated that the proposed cost savings would not involve staff cuts, focusing instead on content budget adjustments.

McCall has argued that the £1.6bn sale of its TV and streaming business to Sky is ITV’s route to survival.

However, last week, the culture secretary, Lisa Nandy, issued a public interest intervention notice, triggering an investigation by Ofcom and the CMA.

Nandy raised concerns that the combined broadcasters would account for about 86% of linear news and current affairs viewing in Britain.

Reporting verified from official briefings and primary coverage by www.theguardian.com.