According to the reports, the cost allotments for the UK film council are going to be axed because of the cost cuts implemented by the UK department of Culture, Media and Sports (DCMS).

The UK Film Council was established in the year 2000 and invests around 15 million euros in the British movies with 75 employees. But the Culture Secretary Mr. Jeremy Hunt said he wanted to build up a direct and easier relation with the Institute of British Films.

The chairman of the UK Film Council, Mr. Tim Bevan has criticized this move of government. He said it was a big mistake by the government driven by political pressure and short term thinking.

After this announcement of cost cuts the DCMS has said the film funding would not stop and rather it would be distributed through several new people or organizations.

The lottery funding for UK films is 26 million euros per year currently but it is expected to rise to 32 million euros after the year 2012. Now the direct funding from the government is now 25 million euros per year and considered as a part of the spending review.