Blue Zoo has become one of the first companies to qualify for the government’s animation tax break for its new production Digby Dragon.

The indie, led by Oli Hyatt one of the chief campaigners for the tax break, has received a letter of comfort from the British Film Institute which confirms the project has passed the cultural test required to qualify for funding. Blue Zoo is one of five companies to qualify for funding. The BFI has not disclosed the names of the remaining four firms.

Separately, the indie has become the first company to contribute towards Creative Skillset’s Skills Investment Fund (SIF). Its contribution will be matched by the Treasury.

The development was announced by Skillset executive director Kate O’Connor at last week’s Annecy Festival.

“These developments mark a step change in the competitiveness of the UK animation industry. They put out a clear message that the UK animation industry is open for business,” she said. 

Hyatt added the financial support helped UK indies operate on a level playing field with the rest of the world.

“UK producers faced increasingly subsidised competition from overseas, we saw our top talent moving overseas and there was simply not enough investment in the next generation of animation producers,” he said. 

Animation education

Separately SIF-funded animation courses are due to start in July. Industry veteran Frank Gladstone, who has worked for businesses including Aardman Animation, Disney and Dreamworks, is to lead a four-week Advanced Storyboarding for Animation course.

It will train experienced storyboarders in the skills needed to run and supervise fast-paced shows targeted at 8-12 year olds.

Red Kite chief executive and Animation Council member Ken Anderson said: “Creative Skillset has been working closely with the animation industry over the last six months to identify the skills gaps and shortages that businesses face. It revealed urgent skills shortages in Storyboarding, CelAction, production management and compositing and rigging.”