Why has the UK government given Disney £32m?

Disney has effectively been handed £31.9m by the UK government for agreeing to make the new Avengers film over here.

The money comes in the form of a tax cut, and is believed to be the largest ever handed out by HM Revenue & Customs since it began its Film Tax Credit scheme in 2007.

The latest Avengers film, which comes out next year, received nearly seven-times the average for the scheme, which is £4.6m.

Since 2007, the government has given hundreds of millions of pounds to Disney to make movies this side of the Atlantic.

Avengers

The scheme allows films with a budget of more than £20m to claim back up to a fifth of their production costs. However, the film must be considered British – with at least 70% of its labour costs paid to European workers and 25% of the production costs to be spent in the UK.

The scheme costs the Treasury £150m a year, according to the British Film Institute, but contributes £12 for every pound spent in GDP.

However, the scheme has been criticised for causing big budget American films to steal talent from smaller UK films.


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