22/01/2009

Box office collections in the UK and Ireland rose to £949.5m in 2008, up 5% from 2007 according to latest UK Film Council (UKFC) statistics. However, this good news was tempered by the fact that production spend totalled just over £578m – down 23% from 2007’s £753m.

The number of feature films made were down to 111 from 2007’s 126. Nonetheless, spend on indigenous British films rose by 21.5% compared to 2007. Sixty-six UK indigenous feature films were produced in 2008 (68 in 2007) with the total UK spend reaching £192m, 21% higher than 2007’s £158m.

But, inward investment films decreased by 35% compared to 2007’s £523m with 25 films (30 in 2007). Co-productions were down to 20, from 28 in 2007. The UK spend of £48m on these marked a 34% decrease from 2007’s £72m.

UKFC CEO John Woodward said, “It has undoubtedly been a tougher year for inward investment because of the exchange rate, the effects of the US writers’ strike and actors’ dispute plus increased fiscal incentives now offered in more than 30 US states. While these effects were felt the world over, the UK tax credit has remained absolutely vital in keeping us competitive and helping to bring more than £330m in foreign investment into our economy.”

“We will also begin to see the full effects of the economic situation take their toll on independent British movies. It’s going to be even harder for these types of films to raise credit especially through bank loans. Therefore, the Lottery funding that the UK Film Council provides will become even more important as will the tax credit and support from broadcasters such as Channel 4 and the BBC,” he added.