UK film body the Film Council stands to get the lion's share of a $3m (£2m) boost in annual government funding.

The funding, announced by the government as part of last month's spending review, is expected to be split between the Film Council and the National Film and Television School (NFTS). The recently-launched Council currently receives about $31.5m (£21m) a year in funding direct from the government, most of which is channelled into its cultural wing, the British Film Institute.

The government is to finalise how much the Council and the NFTS each receive this autumn. The hike is expected to kick in April 2002.

The Council has also dished out a round of interim National Lottery awards ahead of the creation of permanent funds for production and development in October. Amongst the winners are FilmFour's $6.5m (£4.3m) untitled John McKay project (previously called Sad Fuckers' Club), which secured $1.3m (£875,000).

Other titles to secure funding included Pathe Pictures' $6.1m (£4.1m) The Hole, to be directed by Nick Hamm; Morvern Callar, which marks Lynne Ramsay's follow-up to Ratcatcher; and Hot Property Films' Dogfight, a $3.7m (£2.5m) adaptation of William Gibson's book.