Screen East, an agency set up to promote film-making in the east of England, is the first large-scale victim of the government's surprise decision to close down the UK Film Council.
The regional body, responsible for luring film productions such as The Duchess, The Dark Knight, Batman Begins, Atonement, Stardust and Children of Men to its locations, has folded after it was declared insolvent this month. It was one of nine regional agencies that made up Screen England and was funded jointly by the national film council and by the East of England Development Agency, both now being disbanded by the government.
In an unexpected twist, the agency's collapse was followed by the arrest of its finance manager, Melvin Welton. The 61-year-old from Great Yarmouth was held by police on suspicion of theft and has been released on bail pending further inquiries.
In the wake of the abolition of the UK Film Council two months ago, the regional screen agencies have been left in limbo. At stake is around £30m of lottery money, once distributed by the film council. Ed Vaizey, the culture minister, is to decide on a new chain of command for the British film industry, possibly handing the purse strings to the British Film Institute or The Arts Council of England. Vaizey has pledged to retain the British Film Commission and the other regional film agencies.
With offices in Norwich and at Leavesden Studios in Watford, Screen East's staff of 12 had the task of promoting and marketing the area. Last year it invested more than £2m in film, television and digital media projects and businesses in the east of England and it also held the rights to run a £3.5m green fund to promote productions with a low carbon footprint.
The collapse of the agency may threaten the future of the 30-year-old Cambridge Film Festival, which concludes today. "We receive £20,000 each year for the festival which is a substantial chunk of money and enables us to make the festival as unique as it is. Our money for this year's festival has not arrived yet and we are now chasing it," said Bill Thompson, chair of trustees for the Cambridge Film Trust.
Caroline Williams, chief executive of the Norfolk Chamber of Commerce, said the film industry played a growing role in the county's economy. "Over four years, the Norfolk film industry's economic impact rose from £685k in 2005/6 to £4.2m in 2008/9," she said.
Norfolk's unspoilt landscapeis suited to period dramas. The 2008 film Dean Spanley, starring Peter O'Toole, was shot in the county because of its stately homes. The film received the first money from Screen East's £2.25m content investment fund, which was expected to bring more than £5m back to the area.
