Film industry pumps £4.3 billion into UK economy
The UK film industry’s contribution to the UK Gross Domestic Product (GDP) rose from £3.bn1 in 2004 to a whopping £4.3bn in 2006 according to a report by Oxford Economics, co-financed by the UK Film Council and Pinewood Shepperton plc.
The figure was arrived at after taking into account the wide-ranging contributions made by the film industry to the economy through employment, production, servicing, worldwide exploitation merchandising and tourism.
According to the report, titled The Economic Impact of the UK Film Industry, the Government’s new film tax relief scheme is proving to be a success, with the UK expected to attract 11% of all global film production in the period till 2010. Inward investment is also expected rise to £800 million by that time.
However, the report also sounded a note of caution, warning that the abolition of the tax relief scheme would reduce the film industry’s contribution to the GDP by £2.25bn and downsize employment by 50,000 jobs, taking account of supply chain impact and multiplier effects.
Abolition would also have negative knock-on effects on tourism, exports and UK cultural life. Currently, the costs of producing a film in the US are over 30% more than the UK while Czech costs are 12-13% lower.
John Woodward, CEO of the UK FC, said: “This new report shows that the UK film industry is a major contributor to the UK economy making films that UK and international audiences want to see and generating financial and cultural benefits.”
Ivan Dunleavy, CEO of Pinewood Shepperton plc, added: “The Oxford Economics report demonstrates clear and irrefutable evidence of the tangible benefits that UK film and the creative industries as a whole bring to the economy.”
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