16/10/2009

UK production spend has fallen from £182.8 million in the first nine months of 2008 to £154.2 million in the comparative period this year. Co-productions fell from 18 to just eight in the same period, according to new statistics released by the UK Film Council (UKFC).

The silver lining in the gloom is that inward investment in the UK film industry shot up to a record £686.4 million, compared to £283.7 million in 2008 – a 142% increase. Independent UK film production held steady with 62 UK films made, compared to 61 in the same period in 2008. The number of inward investment films increased from 22 to 28 in the same time frame.

UKFC CEO John Woodward said, “The UK’s film industry is actually weathering this global financial storm relatively well and we’re of course helped by the current favourable exchange rate. That’s not to say there aren’t going to continue to be challenges ahead, but today’s figures show just how resilient we are as an industry. Not only do we have a critical mass of world-class facilities and talent hugely skilled in making good quality and popular films, but the film tax credit is an important building block in this success, and it’s going to be crucial to maintain it in the future.

“The one ongoing concern is in relation to the continued drop in UK independent co-productions. This is largely a function of the one flaw in the otherwise excellent film tax credit which disincentives UK participation in co-productions by focusing tax relief only on production spend made on the ground in the UK.”