UK's film and TV visual effects industry handed boost in Autumn Statement

The UK is a popular place to film major Hollywood films, like the latest Mission: Impossible film - which was shot in Yorkshire and elsewhere

Films and TV shows will get more support to create their visual effects in the UK, the government has promised.

The UK has become a popular destination to shoot Hollywood blockbusters, but there have been warnings that the current system of tax breaks leads some films to do visual effects elsewhere.

Chancellor Jeremy Hunt pledged more tax relief in his Autumn Statement.

The UK Screen Alliance, which represents visual effects (VFX) industry, welcomed the announcement.

In recent evidence to a House of Commons committee, the body said the existing tax structure, "rather than attracting VFX work to the UK, very often drives it away".

A consultation document published by the government on Wednesday said: "There have been reports of visual effects activity moving overseas, with some UK-based companies reportedly focussing their expansion overseas."

According to the UK Screen Alliance, VFX is "the digital manipulation of images to enhance, augment or entirely replace elements of live-action shots in films, TV programmes or commercials".

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After the chancellor's announcement, the alliance's chief executive Neil Hatton said the new measures "should aim to position the UK as the first choice destination for VFX production for international film and TV".

The organisation added: "The UK has world-class award-winning talent in this sector, but investment in the UK has stagnated, while other territories have increased the attractiveness of their incentive programmes."

Dame Caroline Dinenage, chair of the Commons culture committee, also welcomed the move, which she said "should provide this valuable part of the industry with a much-needed competitive edge".

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The government said it would aim to implement additional tax relief for visual effects from April 2025, and called for input from the industry about how the new measures should work.

As part of the Autumn Statement, the government said it expected a rise in employment as creative industries embrace new technologies.

"To maximise the benefits of this, the government will further boost the international competitiveness of tax incentives for the UK's world-leading visual effects sector," it said.

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However, other industry bodies said the government had not done enough to help different parts of the film industry.

Pact, which represents production companies, said it had made ministers aware that the independent film sector was "now at the point of market failure".

"The Autumn Statement is a missed opportunity for ministers to remedy a clear market failure within the independent film sector," it said on Wednesday.

"Investment into indie films has been in consistent decline and producers are finding it increasingly difficult to secure financing in a challenging market."