Film Industry contribution to UK economy up 13.8% in 1 year

John Boyega in 'Star Wars: The Force Awakens'

The recent expansion in film industry production and distribution activity has created an unprecedented boost to the UK economy.

In the period between 2013-2014, Film, TV, radio and photography surged ahead contributing a 13.8% increase in GVA (Gross Added Value) to the UK economy. Overall the Creative Industries contributed £84.1bn to the UK economy, representing 5.2% of all activity.

In the same period, employment in the Creative Industries grew by 5.5% to 1.8 million jobs while the value of exports amounted to 8.7% of the total of the UK’s services output in 2013.

The economic contribution of the Creative Industries grew at the fastest rate of any sector in the UK between 2008 and 2014 at 37.5%.

Creative Industry growth exceeded overall UK economic expansion (Gross Added Value)

WIth corporation tax rates being reduced to 18% by 2020 and the current weakness of the pound, the UK’s film industry is well positioned to grow over the next 4 years with more foreign investment, particularly from the US.

Sterling is currently at 0.70 against the Dollar, nearly at its all time low during the financial crash between 2008 and 2009. This has created a perfect storm for American investors looking to produce films and TV programs in the UK for lower cost.

Despite the increase in employment for the sector, there remain key issues in the workforce such as a lack of diversity and opportunities for women which are currently being addressed. Recently the BFI announced a £1 million fund to provide training schemes to support talent diversity. This scheme was launched In November 2015 and will run for 12 months.

The UK’s Creative Industries are expected to grow at an annual rate of 6% over the next few years providing more opportunity for young creative talent.