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New report shows UK tax reliefs help fuel boom in screen sector

A new independent report published today (Tuesday 9th October) demonstrates the huge value of the government tax reliefs across the UK’s screen industries, seeding unprecedented levels of production, creating thousands of jobs, growing businesses and infrastructure, generating record levels of inward investment, boosting exports of UK productions and services internationally and creating spillover benefits for other industries.
 
The report, Screen Business: How tax incentives help power economic growth across the UK reveals that an estimated £632 million in tax relief seeded £3.16 billion in direct production spend in 2016, a 17% increase on 2015 and a doubling over 9 years.
 
UK-made productions generated £7.9 billion as the screen sector’s overall economic contribution (GVA), including £2 billion in tax revenues. Production spend which would not take place without the tax reliefs, known as additionality, doubled GVA to £4.1 billion in 2016.
 
The breakdown for each relief category is as follows:
 
- £1.72 billion from film production, a new record, 47% up from £1.16 billion in 2013
 
- £896.7 million from high-end television production, more than double from £414.9 million in 2013
 
-  £389.9 million from video games development supported by tax relief, 70% up from £228.8 million in 2015
 
- £97.1 million from animation television programme production, 27% up from £76.2 million in 2013
 
- £61.0 million from children’s television programmes, in the first year of tax relief
 
Over 137,000 full-time equivalent jobs (FTEs) were generated by tax-relief supported screen production in 2016, and growth in the screen industries is outstripping wider economy with 71% increase in FTEs in film, high-end television and animation television production between 2013 and 2016.
 
The report was produced by analysts Olsberg SPI with Nordicity. It was commissioned by the BFI, working with industry partners including Pact, the British Film Commission (BFC), Pinewood Group, UK Interactive (Ukie), the UK Screen Alliance and Animation UK. It uses the latest complete dataset available from 2016.
 
Pact Chief Executive John McVay commented: "Yet again the research shows how much return on investment the creative industries and the screen sector in particular produces for the UK economy. Using the tax relief to maximise opportunities and growth across the UK is vital to help the UK screen sector achieve the high quality needed to compete globally.”
 
Further information about each relief category can be found here.
 
Read the full report here.