That's the problem in a nutshell - what we term "the British film industry" is in fact a number of small businesses very loosely linked together by common interests.
If it were a proper industry, then someone like Davies might well benefit from the kind of arrangements that bankrolled Powell & Pressburger in the 1940s, Woody Allen in the 1970s, Stanley Kubrick from the 1960s to his death and the Coen Brothers in the 1990s - whereby their films were essentially backed by major studios as prestige projects, not necessarily intended to make a fortune but the critical kudos would compensate for them only just breaking even.
An even more depressing example - because he's only after a low six-figure sum, not seven million quid - is Patrick Keiller, who has apparently been trying to get a follow-up to his marvellous London and Robinson in Space made for ages. His previous films were funded by the BFI Production Board, which would undoubtedly have backed his new film as well - I believe London in particular turned a very healthy profit - but it no longer exists, so Keiller has to deal with the far less sympathetic Film Council. As he pointed out, he's after a tiny fraction of the money they put into Sex Lives of the Potato Men - his films are about as cheap as 35mm features get, since he largely makes them single-handed.
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