The UK film industry is asubstantial contributor to the UK economy, directly contributing £960m to GDPand employing 31,000 people, according to a new report published today byOxford Economic Forecasting.

Published at a sensitivetime for the film sector - the Treasury's consultation period on its tax creditproposals ends on October 21 - the report argues that the UK film industryplays a vital role in British economic and cultural life. The report wassupported by the UK Film Council and Pinewood Shepperton plc.

Pinewood Shepperton chairmanMichael Grade, who introduced the report at a presentation held at BAFTA inLondon, said that it "puts to rest any view that the British film industry is aluxury item. In fact it is a significant contributor to the UK economy.'

The report concludes the UKfilm industry directly contributed £310m to the Exchequer in 2004 in incometax, national insurance contributions, VAT and corporation tax.

In turn, the report'sauthors told the audience at BAFTA that the film industry received £124m inpublic money via Lottery cash and tax relief in the 2004/5 financial year. Ofthis £124m, some £70m was tax relief.

Key findings of the reportinclude:

-the UK film industry directly employs31,000 people, making it similar in size to the BBC and the book publishingindustry. Indirectly, the industry supports 62,000 jobs in total, taking intoaccount companies supplying the film industry and jobs dependent on thespending of film workers.

-The film industry directly contributedaround £960m to UK GDP in 2004, more than the machine tools manufacturingindustry.

-Taking into account all the ways inwhich the UK film industry contributes to UK plc - through indirect factorssuch as attracting tourists, promoting British cultural life, supporting UKexporters and sales of DVDs and CDs - the UK film industry generated in totalabout £3.1bn in GDP in 2004 and Exchequer revenues of £850m.

Note: the report's figures are based on the performance ofthe 'UK film' industry, which the authors define as any company or individualemployed in film production in the UK, distribution of UK-made films and theexhibition of UK-made films.