The UK Film Council is to be axed as part of a cost-cutting drive by the Department for Culture, Media and Sport (DCMS), it has been announced.
The organisation, founded in 2000, had an annual budget of £15m to invest in British films and employed 75 people.
Culture Secretary Jeremy Hunt said he wanted to establish a "direct and less bureaucratic relationship with the British Film Institute".
UK Film Council chairman Tim Bevan called it "a bad decision".
He said the announcement was "imposed without any consultation or evaluation".
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