European Commission Cinema Communication Safeguards UK Film Tax Relief

The European Commission has today published a new Cinema Communication, which safeguards the UK’s film tax relief and Lottery funding for film.

This follows a thorough review of State Aid by the Commission, in consultation with European industry. The new Communication, which acknowledges concerns raised by the UK Government and the BFI, allows Member States to support the evolving need for public intervention in areas including distribution, exhibition and screen heritage. This will ensure that the economic and cultural vitality of the industry is safeguarded and sustained.

Additionally, the Communication also recognised the importance of co-production, allowing the maximum aid intensity to be increased to 60 per cent of the total production budget.

As the UK film sector supports approximately 117,000 jobs and contributes over £4.6 billion to UK GDP and more than £1.3 billion to the Exchequer, this new Communication is welcome news across the industry.

Responding to the Communication, George Osborne, Chancellor of the Exchequer, commented that, “The UK film industry makes a valuable cultural contribution and is an important part of our diverse and dynamic economy. Through the film tax relief we have been able to support this highly skilled, innovative and creative sector and the European Commission’s Cinema Communication will mean we can continue to provide that support.”

Amanda Nevill, CEO of the BFI, said, “The BFI is delighted that the Commission has listened to our representations, made in partnership with other European countries, on behalf of the industry. This successful outcome is a great example of what can be achieved when the main agencies for film in the UK and across Europe come together and pool expertise.’’