Investment in UK-linked filmswas $1.1 billion (£699.1 million) into 78 films in 2005, down 27% from 2004'sinvestment of $1.7 billion (£960 million) in 68 projects, according to figuresfrom ScreenFinance.

ScreenFinance also noted that inward investment from Hollywood into the UK fell from $889.5 million (£503.4 million) with eightproductions in 2004 to only $302.1 million (£171 million) and four productionsin 2005. Last year's shoots for studio films were The Da Vinci Code, Children of Men, A Good Year, and BasicInstinct 2.

Average costs of films werealso down in 2005: co-productions had an average cost of $12.7 million (£7.2million) and average costs of completely British films fell to $9.2 million (£5.2million). There were 41 wholly UK films that started production in 2005.

Reasons blamed for thedownturn are the changes in the UK film tax laws, the strength of the pound, and theaffordability of alternate shooting locations such as Eastern Europeancountries. It's a trend that is likely to continue in 2006 - even the JamesBond franchise is going overseas, with only part of Casino Royale to shoot in England while the bulk will be based in the Czech Republic.