Chancellor ‘dolls’ out fresh tax breaks for British blockbusters in the wake of hits like Barbie
It appears that the British TV and film industry will receive new tax breaks in the wake of successful productions such as the blockbuster Barbie.
Chancellor Jeremy Hunt announced a ‘call for evidence’ on how the government can increase the ‘generosity of film and high-quality TV tax credits’.
It will explore how Britain can increase international competitiveness for the visual effects sector, attracting even more foreign filmmakers.
The Chancellor said Britain’s creative industries ‘already support Europe’s largest film and TV sector’ and highlighted Barbie.
The film, starring Margot Robbie, was largely filmed at the Warner Bros studio in Leavesden, Hertfordshire, and has earned more than £1 billion at the box office.
Support: The Chancellor said Britain’s creative industries ‘already support Europe’s largest film and TV sector’ and highlighted Barbie starring Margot Robbie and Ryan Gosling (pictured)
According to the British Film Institute (BFI), the British film and television industry has grown enormously in recent years, with production spend reaching a record £6.3 billion by 2022.
A major attraction for filmmakers is Britain’s generous tax relief system.
Film production companies can claim up to 25 percent cash rebates on up to 80 percent of eligible spend, regardless of the film’s budget, as long as at least 10 percent is spent in Britain.
Hunt also announced that the BFI and the British Film Commission will receive an additional £2.1 million to support new shows and films.
But the industry has come to a standstill following strikes by writers and actors in Hollywood over wages and concerns about artificial intelligence.
These strikes have only recently been resolved, meaning that many productions are starting again.
Some have said the government’s changes do not go far enough to boost smaller players.
The Producers Alliance for Cinema and Television, a film trade organization, said more was needed.
John McVay, chief executive, said the government had ‘missed an opportunity to fix a clear market failure’ after refusing to increase tax breaks for lower budget films costing £1m to £15m.