Scottish screen industry’s £1bn target within sight according to research from Saffery and Nordicity

GVA impact of Scotland’s screen sector increased by 15% to £718 million in 2023

New research from Saffery LLP, in partnership with Nordicity and commissioned by Screen Scotland, reveals Scotland’s screen sector continued its impressive trajectory of growth in 2023, with forecasts suggesting the industry is on track to contribute £1 billion to the Scottish economy by 2030/31.

The Economic Value of the Screen Sector in Scotland in 2023, authored by Stephen Bristow, Partner in the Film & Television team at top-15 accountancy firm Saffery and economic analysts at international consultancy Nordicity, examines the economic and employment value of Scotland’s Screen Sector.

This is the third bi-annual edition of the research, which began in 2019.

Despite 2023 being a challenging year for production globally, with industrial action from the US actors and writers’ unions halting much film and high-end TV drama production across the second half of the year, this latest edition of the research found that significant growth across the sector continued in 2023, with both cinemas and screen tourism rebounding as COVID restrictions lifted.

Summary findings

• The GVA* of Scotland’s screen sector increased by 15%, from £627.1million in 2021 to £718million.
• Employment in Scotland’s screen sector increased by 12.1%, from 10,940 full-time equivalents (FTEs) in 2021 to 12,260 FTEs in 2023.
• Having more than doubled between 2019 and 2021, inward investment film and HETV production in Scotland fell back to £173.5 million in 2023 as a direct consequence of the US writers and actors strikes, from £347 million in 2021 – with several projects of scale moving to a 2024 start of production. Nonetheless, 2023 remained well ahead of the pre-COVID baseline of £165 million in 2019.
• Cinema attendance recovered faster in Scotland in 2023 than across the rest of the UK
• Supported by Screen Scotland, independent film production spend rose 10% to £8.4million – increasing the number of locally originated films made in Scotland.
• £173.5million of project investment was supported by Film and HETV tax relief in 2023. After more than doubling between 2019 and 2021 – due to factors including the opening of new production facilities – this represented an approximate 50% reduction, but still an increase of £10million compared to 2019.

*GVA is the standard measure used by the Office for National Statistics (ONS) and other national statistical agencies for measuring the monetary value of economic activity and the economic performance of industries.

Stephen Bristow, Partner in the Film and TV team at Saffery, said:

“The screen sector is an economic success story for the UK and nowhere more so than in Scotland. The industry has had to navigate ongoing challenges, not least including the impact of the Hollywood strikes – which displaced some of 2023’s planned investment into 2024. But with employment and GVA up in 2023, and inward production investment having shown marked signs of recovery in 2024, the Scottish screen sector is going from strength to strength.

The Westminster government has signalled its support for the industry with its Creative Industries sector plan, which recognised Scotland’s position as a dynamic hub of creative talent and economic potential, and has continued to show commitment to the UK’s globally leading range of tax reliefs and incentives; these deliver huge value for both taxpayers and the production industry across all corners of the UK – including Scotland.

 Taken together with an expanding production base and a highly skilled workforce, Scotland is well positioned to hit Screen Scotland’s target for the sector to add £1billion of economic value by 2030/31.”

 Isabel Davis, Screen Scotland’s Executive Director said:

 “These new figures highlight not only the resilience of Scotland’s screen sector, but also the extraordinary creativity and commitment of the people working within it. Despite global headwinds in 2023, the industry continued to grow and contribute significantly to the Scottish economy.

This growth is a result of years of sustained investment in skills, talent development, production, education and infrastructure, all of which are vital in ensuring Scotland remains an attractive destination for both inward investment and locally originated content.”

Culture Secretary, Angus Robertson, said:

“Scotland’s screen sector is one of our greatest cultural and economic success stories, and this report demonstrates just how important it has become to the nation’s economy, identity, and global reputation. From attracting major international productions to nurturing homegrown filmmakers and independent talent, the industry is creating jobs, opportunities, and significant economic returns for communities across Scotland.

 The progress we’ve seen is the result of strategic investment, partnership, and an outstanding pool of creative and technical talent. We will continue to support the sector so that it can continue to thrive and inspire.”