Keir Starmer is banking on the British Hollywood for economic growth with new tax relief coming into play. The Prime Minister, in an exclusive interview with The Independent, emphasized the importance of the creative arts to him personally, citing his own musical background having played the flute and the violin.
Starmer is gearing up to reveal a significant investment strategy for the UK’s film industry as a core element of his agenda to accelerate economic expansion. He highlighted the new package of tax relief aimed at bolstering “British Hollywood” and increasing the production of films in the UK, consequently creating numerous job opportunities.
Speaking to Independent TV, Starmer said, “This is a very significant initiative, tax relief for filmmaking. In the UK, we excel in the creative sector. We have a strong presence globally due to our creative output. Encouraging more film productions in the country is a key part of our economic growth strategy.”
The introduction of the Independent Film Tax Credit (IFTC) coincides with the commencement of the London Film Festival. The tax relief will extend to productions with budgets up to £15 million, making them eligible for a 53% tax relief. Additionally, films with budgets up to £23.5 million will qualify for the credit, albeit with tapered relief.
The UK film sector currently contributes £1.36 billion to the economy and employs over 195,000 individuals. The requirement for films to have either a UK writer or director, or to be certified as an official UK co-production, aims to boost indigenous talent and content in the film industry.
The announcement has been well-received by industry insiders. Amy Jackson, producer of the Oscar-nominated Aftersun, praised the tax relief as a critical intervention that will support British independent film productions and enhance co-production opportunities.
Culture Secretary Lisa Nandy underlined the cultural and economic benefits of the tax reliefs, anticipating a positive impact on talent development, content creation, and the overall sustenance of the UK’s flourishing film industry. The response from industry figures like British Film Institute chair Jay Hunt and Pinewood Group’s corporate affairs director Andrew M Smith has been equally enthusiastic.
The unveiling of the tax relief precedes a government investment summit set to convene next week, bringing together UK leaders, global investors, and businesses to further support the growth and development of the UK’s film industry.