Yesterday’s EU Referendum (AKA Brexit vote) resulted in a narrow victory for the leave campaign, who secured 52% of the popular vote.
In the immediate aftermath of the results, the pound sterling tumbled on the international market, falling to its lowest levels since the 1980s; and Prime Minister David Cameron has announced his resignation, effective in October.
Further repercussions are expected from the retreat from the EU that is likely to occur in the next two years, but the Independent Film & Television Alliance – the body representing all the independents within the TV & film industry – has warned that the decision is “major blow” to UK producers and will have dire consequences for the industry as a whole.
“The decision to exit the European Union is a major blow to the UK film and TV industry. Producing films and television programs is a very expensive and very risky business and certainty about the rules affecting the business is a must”, said Michael Ryan, Chairman of the Independent Film & Television Alliance and Partner at GFM Films.
“This decision has just blown up our foundation – as of today, we no longer know how our relationships with co-producers, financiers and distributors will work, whether new taxes will be dropped on our activities in the rest of Europe or how production financing is going to be raised without any input from European funding agencies”, he added. “The UK creative sector has been a strong and vibrant contributor to the economy – this is likely to be devastating for us.
UK producers, who have benefited from increased production across Europe and the greater business opportunities offered by the single European market, were clear in the run up to the referendum that they re-soundly backed the remain campaign. As the IFTA has expressed, the Brexit win brings a(nother) period of uncertainty for the industry. How will the decision to leave the EU affect UK producers in the end? Watch this space.