Budget 2012: New TV tax credit is cracking news for Wallace and Gromit

The television industry has greeted the planned tax credit as “a much-needed shot in the arm” that will stop big-budget shows going abroad.

The Chancellor said the plan – similar to the film tax credit – would also attract “top international investors” to the UK.

A spokeswoman for the TV Coalition, made up of some of the biggest names in TV production, said it could “put an end to the exodus” of UK drama, that has seen shows including Birdsong and Titanic made abroad to take advantage of tax incentives.

Research estimates the plan would generate £350 million a year for the UK economy.

Glenn Whitehead, executive at US cable network HBO, said yesterday: “Today’s news has turned the UK from one of the most expensive options into a competitive and affordable location. We would therefore love to bring more production to the UK.”

Animation studio Aardman – the company