The British TV and film industry looks set to be handed fresh tax breaks in the wake of successful productions such as blockbuster Barbie.
Chancellor Jeremy Hunt announced a ‘call for evidence’ on how the Government can increase the ‘generosity of the film and high-end TV tax credits’.
It will look at how the UK can boost international competitiveness for the visual effects sector – attracting even more foreign film makers.
The Chancellor said Britain’s creative industries ‘already support Europe’s largest film and TV sector’ and highlighted Barbie.
Starring Margot Robbie, it was largely filmed at the Warner Bros studio in Leavesden, Hertfordshire, and has made more than £1billion at the box office.
Support: The Chancellor said Britain’s creative industries ‘already support Europe’s largest film and TV sector’ and highlighted Barbie starring Margot Robbie and Ryan Gosling (pictured)
UK film and TV has boomed in recent years, with production spend reaching a record £6.3billion in 2022, according to the British Film Institute (BFI).
A key attraction for film makers has been the UK’s generous tax relief system.
Film production companies can claim up to 25 per cent in cash rebates on a maximum of 80 per cent of qualifying spending, regardless of the film’s budget, as long as at least 10 per cent is spent in Britain.
Hunt also announced that the BFI and British Film Commission will be given £2.1million extra to support new shows and films.
But the industry has stalled following strikes by writers and actors in Hollywood over pay and concerns about artificial intelligence.
These strikes were only recently resolved, meaning many productions are getting back in the works.
Some have said the Government’s changes do not go far enough to boost smaller players.
The Producers Alliance for Cinema and Television, a film trade body, said more was needed.
John McVay, chief executive, said the Government ‘missed an opportunity to remedy a clear market failure’ after refusing to raise tax relief on lower-budget films costing £1million to £15million.
