Troubles on the Visual Effects Horizon in the United Kingdom

All the while I was working in Soho, UK, there was all this background hub-bub about the "tax incentives" and "lease buy back program" that was (depending on who you listened to!) footing the entire bill for the expansion and growth of the Soho post-production houses, or merely a helping hand along for a ride that was largely merit driven. For example, the Soho studios were doing good work, and therefore getting more work as a result of that good work. Although it seems to be true that if you look at, for example, "Harry Potter and the Prisoner of Azkaban" the shots completed in the United States (the Dementors at ILM) versus the shots completed in the UK (everything else at The Moving Picture Company, Double Negative, Framestore/CFC and Cinesite) there is hardly a recognizable "quality gap." Especially if considering the average cinema goers' eye for level of accomplishment. So, given this increase in level of accomplishment to match the high levels of achievement in US -based visual effects, or seeming parity amongst studios on both sides of the Atlantic, one can only really draw one conclusion... That the work was coming to the UK because the producers liked what they saw! In fact, and with the benefit of growing hindsight, these incentives were largely the motivating force behind the growth and expansion of the UK visual effects industry. Sadly, it has had little to do with the work (some of which I did!) aside from the fact that American producers knew that they "could get it done in the UK." As this recent news item points out, as the laws that allowed for the incentives come under review, the post-production work is already moving elsewhere. As always, you just have to follow the trail of money:

The uncertain future of Britain's entire film industry was triggered by a revision of Section 48 tax benefits for films with budgets of more than £15 million, which the Government found was being abused by some producers.

The situation has been worsened by the weakness of the dollar against the pound, which has meant that American film producers are finding it as much as 30 per cent more expensive to make movies at studios such as Pinewood than it was 18 months ago.

Industry executives expect a huge drop in film production because of the uncertainty. Pinewood suffered a hit this year when Paramount indefinitely postponed shooting its $120 million (£66 million) feature The Watchmen.

Concerns remain over whether the forthcoming Bond film, Casino Royale, and Harry Potter and The Order of the Phoenix will be shot in the studios. The producers of both are considering going to cheaper Eastern European cities, such as Prague and Budapest.

The Film Council, which represents the industry, is in talks with the Treasury to work out a framework for tax relief. It is expected within weeks to set down a timetable for rolling out a new tax regime that will allow for a fresh round of investment from Hollywood studios.