The actor Ray Winstone yesterday launched a scathing attack on the government for hampering investment in the domestic film industry, saying that its demise "breaks your heart".

The actor, whose roles in British films include parts in Last Orders, Sexy Beast and Scum, said he had been forced to seek roles abroad because the government had caused uncertainty about financing by threatening to clamp down on tax breaks.

"We have to make films in other countries that we should be making here," he said yesterday.

"I saw it happen in Ireland ... a man who earns loads of money and finds a tax loop goes and makes films, so the government said we're not having that. But for each film you're putting four or five hundred people out of work who all pay their taxes. I'm waiting for someone to explain why that's a good idea," he said.

The government's consultation with the UK film industry over the future of "section 42" incentives, which are used by studios to offset the cost of much larger productions by as much as 20%, was announced in March's budget. But the process was delayed by the election.

The film industry is continuing to lobby the government over its plans to close the tax loophole in the hope that it will replace it with new incentives for studios to film here.

Winstone said he had been forced to relocate Sweeney Todd, a period drama his production company is making for the BBC that will go out later this year or early next, to Romania because it was uneconomical to shoot it in London.

"I've got to go to Romania to make it. It's about London and I don't see the fucking logic in that. But it would cost probably two-thirds more to make it here and we couldn't afford it."

Winstone was speaking at ITV's autumn launch to publicise his return to the small screen in Vincent.

He is also filming Breaking and Entering, the new film by the English Patient director Anthony Minghella and co-starring Jude Law and Juliette Binoche. He said it could only be filmed in the UK because of its low budget and thanks to favours from the cast and crew.

"You can't rely on favours all the time. We should have an industry here, we've got all the talent here. It's just the fucking government again."