11/12/2003

In the government’s pre-budget statement, the Chancellor, Gordon Brown, has announced that he would “consider the right incentives to support one of our great British creative industries”, namely the cinematographic industry. These measures would include extending tax reliefs on UK film production after the 2005 expiry date of Section 48, as well as plans to make the system simpler and better targeted.

“Building on the tax measures introduced by the Government in 1997, and extended in 2001 to promote investment in British films, the 2004 Budget (next April) will announce the results of discussions with the industry and others to extend support through the tax system, beyond 2005”, outlined the statement. “In doing so, the Government will consider the scope for further simplification and ensure that the extended support is targeted effectively”.

Alan Parker, the chair of the UK Film Council (FC) welcomed the government’s continued commitment to the UK film industry: “Film plays an important cultural and economic role and the Chancellor’s comments will be widely welcomed throughout the UK film industry”, he said.

But the government will be taking a closer look at films qualifying for tax relief in the UK, with the aim of cracking down on producers abusing the system. Estelle Morris, the UK Culture Minister stressed she was “determined to ensure the right people are reaping the benefits. Over the next few months, we will work closely with the industry and the Treasury to find ways to simplify and target the extended support effectively”.