A new report has stressed the need for continued government funding and tax relief for the UK film industry.

A new report has shown that the UK film industry contributes over £4.5 billion to UK GDP, supports 100,000 jobs and is weathering the recession well.

The independent study, The Economic Impact of the UK Film Industry by Oxford Economics, was commissioned by the UK Film Council, Pinewood Shepperton plc, Framestore, Cinesite and Double Negative. It concluded that the UK film industry is “substantial, is weathering the recession well, and its long-term trend is one of strong growth and expansion”.

The report also concludes that the UK’s film tax relief is vital to sustaining current levels of global competitiveness and job creation. Without the UK film tax relief in place, UK GDP would be reduced by around £1.4bn a year. That compares with a current cost of the film tax relief of around £110 million a year, meaning that an extra £13 in GDP is generated for every £1 invested.

It will also assist the industry’s lobbying for government backing against the current backdrop of public spending cuts and so called austerity measures being introduced to bring the UK deficit down – it takes into account the broad contribution from the film industry across employment, production, distribution and the supply chain as well as tourism.

Total exports of the film industry in 2008 stood at £1.3bn ($1.9bn) and in 2009 capital investment in the core UK film industry is estimated to have been £147m ($213m), with most of the investment undertaken in the production sector. The report said 36,000 people were directly employed in the movie industry in 2009, up 7% from 33,500 in 2006.

Welcoming the report’s findings, Minister for Culture, Communications and the Creative Industries, Ed Vaizey, said: “The creative industries are a British success story. They continue to grow, and the government sees the real potential they have to help our economy in the coming years. This report is evidence of how important British film is – to our economy as well as promoting our cultural life, our identity and diversity on the international stage.”

Tim Bevan, Chairman of the UK Film Council, said that the UK film industry’s economic contribution is growing in spite of the wider challenges it faces, adding: “This report highlights the financial and cultural benefits of a vibrant British film sector, driving growth and productivity across the creative industries.

“With world-class film facilities, a highly-skilled workforce and effective government support, including a film tax relief that provides certainty for business, the British film industry is firing on all cylinders and is well-placed to play an increasingly valuable role helping the UK economy grow in the years ahead.”

The full report, The Economic Impact of the UK Film Industry, can be downloaded here.