29/04/2009

Film production in the UK fell by a whopping 29% to just 19 films in the first quarter (Q1) of 2009, compared to 31 in 2008, according to figures released by the UK Film Council’s (UKFC) Research and Statistics Unit.

This is attributed to the continued freefall in co-productions (just 2 in Q1 2009) and a 50% drop in inward investment features (4 in Q1 2009, 8 in Q1 2008). Total UK spend was down to £228 million, compared to £251 million in 2008.

UKFC CEO John Woodward said, “This is all about timing and tax breaks. As regards the big US studio financed films, what we are seeing is the debris from last year’s perfect storm when pictures weren’t being greenlit because of US strike action and there were $2 to £1. So a production dip at the end of 2008 and the beginning of 2009 isn’t a surprise. Fortunately, the second half of this year is looking good and we fully expect a serious bounce back based on enthusiasm for the film tax credit and the turnaround in the £/$ exchange rate.

“What I’m much more concerned about right now is the drop in UK independent production starts – by which I mean co-productions. And this is largely a function of the one flaw in the otherwise excellent film tax credit which disincentivises co-productions by focusing tax relief only on production spend made on the ground in the UK.

“And whilst it’s important to recognise the crucial role that public funding plays in getting independent films made in a very tough economic climate, the fact remains there is currently a reducing pot of public film subsidy in the UK so getting the tax credit tweaked must be the real answer to this problem.”