Union approves film tax breaks

BECTU has welcomed announcements by Chancellor Gordon Brown, and Film Minister James Purnell, on the future of the British film industry.

In his Pre Budget Report the Chancellor announced that the new film tax credit will be set at 20% for films with budgets up to £20 million, and 16% for films over £20 million.

This is a higher level of support than was previously signalled, and is in line with the arguments put forward by BECTU and other industry representatives.

Minister James Purnell has also announced changes to the "cultural test" which will be used to decide which films qualify for the tax credit.

This was an issue on which BECTU campaigned alone, but a fantastic response from the union's members attracted widespread support from MPs.

The changes announced by Mr. Purnell are again in line with BECTU's arguments. Most significant is the inclusion of a "majority UK/EEA crew" as a significant factor in the test, which previously focused on a small number of elite individuals.

BECTU Assistant General Secretary Martin Spence said: "Congratulations are due to all the union's members who wrote to MPs and made their voices heard. And all credit to Ministers and officials in the Treasury and DCMS as well, for listening to the arguments."