Channel 4 is to increase the budget of Film4, the division responsible for hit movies including Slumdog Millionaire, by 50% to £15m per year.
The rise will take effect in 2011 and is guaranteed for the next five years. Channel 4 has pledged to boost its total programming budget by £50m following a double-digit increase in TV ad spend so far this year.
David Abraham, the Channel 4 chief executive, has timed the announcement to coincide with the premiere of Never Let Me Go, a dystopian drama starring Carey Mulligan and Keira Knightley which is financed by Film4. The film will open the London film festival, which begins tonight.
"Film has a special and unique role in UK culture, promoting a wealth of extraordinary British talent from storytellers and producers to directors and actors," said Abraham.
"I have been determined during the current process of creative renewal to ensure that it plays a commensurate part in Channel 4's public service delivery."
Abraham said the increased budget will provide the domestic film industry with a financial boost following the government's decision to close the UK Film Council.
"At a time when funding is increasingly difficult to access it will allow us to extend our reach further towards new voices and new audiences," said Tessa Ross, the controller of Film4 and Channel 4 drama. "It is wonderful to be able to deliver some good news to our industry, most importantly because we believe that there is a wealth of great talent here in the UK that this extra money will allow us to support."
Since 1982 Film4 has developed and produced films including My Beautiful Laundrette, Trainspotting, Shallow Grave, East is East, The Motorcycle Diaries, Touching the Void, This is England and The Last King of Scotland.
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