New Screen Business Report Shows UK Tax Reliefs Power Unprecedented Boom in UK Screen Industries

Resulting in £13.48 billion to UK Economy and creating 219,000 Jobs

A new independent report Screen Business, published today (Monday 13th December 2021) by the BFI, reveals the highest ever return on investment to the UK economy of £13.48bn (GVA) from the UK’s Government’s screen tax reliefs from 2017-2019. The in-depth triennial report shows the tax reliefs generated record-breaking levels of production and jobs; grew local businesses and infrastructure expansion across the UK’s nations and England’s regions; attracted record levels of inward investment; boosted exports of UK productions and services internationally; and created wider economic benefits for other industries, including tourism and retail.

All Creatures Great and Small Series 2 Episode 4 Behind Scenes - Playground

Film and HETV production spend increased by 121% to £235 million in Yorkshire and Humber from 2017-2019.

Screen Business analyses film and TV production and video games development spend over the latest three-year period of full data, 2017-2019. The report reveals that an estimated £1.02 billion in tax relief seeded £5.11 billion in direct production spend in 2019, a 61% increase on 2016, and led to an additional £6.43 billion in GVA for the UK economy. UK-made productions generated £13.48 billion in overall GVA, a 23.7% increase between 2017 and 2019.

This GVA yielded £3.60 billion in tax revenues for the Exchequer in 2019, a 27% increase since 2017. Production spend on film, high-end, children’s television and animation which would not take place without the tax reliefs, known as additionality, was worth £6.14 billion in 2019.

Direct spend on production generated record £5.11 billion in 2019 across all screen sectors, up from £4.31 billion in 2017, including £59.7 million from high-end TV production (HETV), in Yorkshire and Humber; a 28% increase on 2017 and 48.4million production spend in Yorkshire and Humber on film, generating 143.9 million GVA in Yorkshire and Humber (a 107% increase in Y&H on 2017), making it the fastest growing region for film production during 2017-2019.

Helen Mirren and Jim Broadbent star in 'The Duke' (Pathe UK)

The report’s analysis gives the fullest picture of the sector prior to the pandemic; evidence shows that production activity has accelerated during recovery. The BFI’s production tracking statistics for 2020/2021 to date show a total film spend of £1.8 billion between October 2020 and September 2021, not far behind the pre-pandemic 2018/2019 spend. Feature films made in Yorkshire and Humber during 2021 include: Indiana Jones, Mission Impossible 7, The Railway Children Return, Emily, Enola Holmes, City Girls, Three Day Millionaire, The Unlikely Pilgrimage of Harold Fry.

This report reflects what we’ve been seeing on the ground, reinforced by the number of enquiries our Film Office has received from both UK and international producers. The dramatic levels of production growth and investment in Yorkshire and Humber outlined here for 2017-19 show every sign of continuing and we are busier than ever. We work closely with the BFI to support the development and growth of the screen sector in Yorkshire and Humber, as the first region to receive lottery funding to support this through the BFI’s National Cluster Growth Fund. This has allowed us to respond quickly and positively to these phenomenal production levels by launching a range of targeted initiatives specifically designed to support growth, and ensure we have a diverse and skilled workforce. Our crewing service has already secured over 6,470 days of work for freelancers since its launch in July 2020 and our Yorkshire Content Fund continues to invest to attract major productions to the region.

Sally Joynson, Chief Executive, Screen Yorkshire

A significant amount of HETV production takes place in the UK nations and England’s regions, with an estimated £1.56 billion in production spend, or around 33% of the UK total, being undertaken outside of Metro London between 2017–2019.

In 2019, HETV spend generated 33,548 FTE jobs in Metro London and 15,612 throughout the rest of the UK, including 1,518 FTE Jobs in Yorkshire (a 178% increase for Y&H on 2017). Taking into consideration the wider impacts of the HETV content value chain, 45,240 FTE jobs were created in Metro London in 2019 and 19,070 throughout the rest of the UK, including 1,735 in Yorkshire and Humber (a 143% increase for Y&H on 2017).

HETV productions filmed in Yorkshire and Humber in 2021 include: The Gallows Pole, The Witcher (2 and 3), The Confessions of Frannie Langton, Gentleman Jack (2), All Creatures Great and Small (2)

HETV spend generated £1.67 billion in GVA in Metro London in 2019 and £778.3 million throughout the rest of the UK. The total impact of the HETV content value chain generated £2.64 billion in GVA in Metro London in 2019 and £1.04 billion throughout the rest of the UK, including £75.6m in GVA in Yorkshire and Humber (a 190% increase on 2017.)

Film production has also been more focused around Metro London which has a highly-developed base of specialist facilities and services. However, the report shows significant impacts across the UK, with around £1.18 billion spent outside Metro London over 2017-2019. This represents around 19% of the total.

In 2019, this spend generated 37,685 FTE jobs in Metro London and 7,775 FTEs throughout the rest of the UK, including 932 FTEs in Yorkshire and Humber (37% growth in Y&H on 2017). When the wider impacts of the film content value chain are taken into consideration, 49,845 FTE jobs were created in Metro London in 2019 and 19,085 throughout the rest of the UK, including 2,204 in Yorkshire and Humber (59% increase in Y&H on 2017).

Film spend generated £1.96 billion in GVA in Metro London in 2019 and £404.1 million throughout the rest of the UK, including 48.4million in Yorkshire and Humber, the fastest growing region during 2017-2019. The wider total impact shows that £3.74 billion in GVA was generated in Metro London in 2019 and £1.24 billion throughout the rest of the UK, including 143.9 million in Yorkshire and Humber (107% increase in Y&H on 2017).

Read the report at BFI

The UK is home to some of the best creative talent in the world, and our TV and film industry is a jewel in our crown, driving hundreds of thousands of jobs and billions for the economy. We’ve ensured the sector has had our support throughout the pandemic, with the furlough and self-employment schemes, and the £500 million Film and TV production Restart Scheme is now helping productions get back up and running. We continue to support the creative sector – our tax reliefs make the UK an attractive place to film and are driving a wave of private investment, and our Plan for Jobs is helping more people to enter the industry through apprenticeships, traineeships and the Kickstart scheme.

Chancellor Rishi Sunak

We work with industry and Government to build the UK screen sector, and Screen Business is evidence of the strength of the tax reliefs and how they have supported a staggering level of production and jobs, and built business across the UK’s nations and regions. It’s a testament to this strength that our screen industries have bounced back faster than almost any other industry post pandemic. As we look to the future we need to ensure that we stay on top of our game – by building the skilled workforce this level of production critically needs and increasing investment in areas across the UK where there are opportunities for growth and innovation.

Ben Roberts, BFI Chief Executive