UK toon firms add to tax credit calls

More UK animation houses, including the relaunched Cosgrove Hall, have called on the British government to introduce tax credits to save the country’s struggling toon industry.

Cosgrove Hall Fitzpatrick Entertainment (CHFE), Komixx Entertainment and Snapper Productions are the latest names throw their weight behind the campaign for production tax breaks akin to those in Ireland, Canada and other territories.

There are fears production within the country will dry up without help. Lobby group Animation UK last year unveiled research that showed two in five British animation firms were in danger of going out of business.

“It is important for all of us to see animation remain in the UK. Not only do we have world-leading creative talent here, but we also have a legacy of entertaining shows too,” said CHFE co-founder Mark Hall.

Companies are doing the “best” they can with the government’s current Enterprise Investment Scheme, “but tax credits would truly level the playing field,” Hall added.

Snapper’s co-founder Nick Butterworth said he had found it “difficult and time consuming” to close the financing for the fledgling toon house’s first show, Q Pootle 5. He echoed Hall’s call for the government to introduce incentives in its upcoming budget.

Children’s IP group Komixx said it was getting support from an equity fund to keep production of its Channel 5 commission Toby’s Travelling Circus in the UK, noting this was at “investor and not company level.”

“Britain has a rich heritage in animation and for every company like Komixx who were able to keep production in the UK there are a hundred others who are forced to seek tax credits abroad and enter production deals with companies outside of the UK,” said Komixx’s CEO and head of TV and film Andrew Cole-Bulgin.

Dangermouse producer Cosgrove Hall relaunched as CHFE last year – as first reported by C21 – after its previous incarnation went out of business in 2009. It has since launched its first show, preschool series Pip!.

Children’s author Butterworth launched Snapper in 2009, while five-year-old Komixx is known for its joint-venture partnership with book publisher Random House, Random House Children’s Screen Entertainment.

All three have joined Animation UK, which is chaired by Blue Zoo owner Oli Hyatt. The lobby group says it has support from UK media regulator Ofcom and the Department of Culture, Media and Sport.

All eyes are now on March’s budget, which will outline the level of support the toon industry will receive.