Union welcomes Brown's film pledge

Gordon Brown's budget plan to extend tax relief on low-budget films for another year has been welcomed by BECTU.

In his March 16 budget statement, Brown announced that Section 48 tax relief will continue until at least March 2006, giving a welcome break to the UK film industry as it braces itself for a tough year ahead.

Martin Spence, BECTU Assistant General Secretary, said: "This is desperately needed, as production levels right now are very low, and I hope this move will encourage employment on new film projects."

However, Spence pointed out that the government has still said nothing about longer-term plans for tax relief on high-budget films over £15 million.

Continuing uncertainty in this sector threatens the UK's strong record of hosting big-budget US films, many of which have been based in Britain in recent years. In addition to uncertainty about tax breaks, US producers are beginning to feel the effect of a falling American dollar, which makes filming in the UK more expensive.

BECTU has lobbied the government on this issue, and in a submission to the Treasury earlier this year argued that the UK must continue to attract these films in order to sustain jobs, skills, and infrastructure.