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“The UK leads the world in creating great film and TV and we should all be immensely proud of the impact we’ve had across the globe,” Chancellor Rachel Reeves said.
Film studios will get huge business rates cuts for the next nine years in a major boost to help Britain make the next Wicked or Indiana Jones.
From Monday, councils can start awarding 40% business rate cuts for filmmakers and the tax break will last until 2034.
Chancellor Rachel Reeves confirmed she would go ahead with the reduction in October’s Budget.
“The UK leads the world in creating great film and TV and we should all be immensely proud of the impact we’ve had across the globe,” Ms Reeves said.
“From the Avengers to Indiana Jones, the UK has drawn in some of cinema’s biggest names thanks to a combination of fantastic local talent and a world-leading creative sector as well as attractive tax incentives.”
The UK’s creative sector already employs over 2.4 million people and is worth over the £120 billion to the economy.
Culture Secretary Lisa Nandy said: “The UK’s film industry is truly world class, producing global box office hits like Wicked and indie classics like Aftersun.
“The sector has huge potential for further economic growth and the government is ambitious for its future. Our new tax incentive, as well as other new measures like indie film tax reliefs and £25 million funding for a new film studio in Sunderland, will help ensure we can continue to create British content, international blockbusters and high quality jobs.”
The tax break has been warmly welcomed by businesses and industry groups, including BAFTA and Warner Brothers, who operate Leavesden studios in Watford where the Harry Potter series was filmed.
“We welcome the Treasury’s announcement confirming its commitment to providing vital relief to business rates,” said Simon Robinson, Chief Operating Officer of Warner Bros.
“It will create a stable environment for long-term investment, including securing the Warner Bros. Studios Leavesden expansion, which will create 4,000 direct and indirect jobs, and the opportunity for continued growth of the industry in the UK and US”
And Sara Putt, chair of BAFTA, said the move would “support a healthy talent pipeline to grow our domestic film and TV industry, so more UK talent and stories are celebrated at home and around the world.”