Osborne: "Britain is a cultural center of the world, and with these tax changes, I am determined we will stay that way."
Further support for the film industry was announced today as Chancellor of the Exchequer George Osborne presented his Spring Budget to the House of Commons.
The 25% tax credit allowance previously applicable to the first £20m of any one film's budget is to be extended so that it applies to all expenditure. It was previously only available at 20% on the remaining portion of larger budgets.
"Our creative industries are already a great contributor to the British economy," said the Chancellor. "We back them again today. We make our TV and film tax credits more generous... the distinction between limited budget films and all others will be removed."
The changes will require approval by the European Commission, which aims to ensure fair competition between creative industries in different European states. They will apply either on the date this approval is received or on the 1st of April, whichever is later.
Opposition politicians have argued that the move is part of a package of measures designed to win over voters in the run-up to the General Election and may not represent an ongoing commitment to film.