Cinema box office takings reached a new record level during 2008 according to new figures released by the UK Film Council (UKFC), although there was also a downturn in film production spend.

The UKFC statistics revealed that box office takings for the UK and the Republic of Ireland totalled £949.5m, an increase of 5 per cent on the previous year and the highest since records began in 1989. British films, including Mamma Mia! and Quantum of Solace, accounted for nearly one third of cinema receipts, although film production in the UK decreased by 23 per cent on 2007 levels despite spend totalling more than £0.5bn.

The UKFC also warned that the economic downturn will have a tough impact upon independent British films during 2009. John Woodward, UKFC chief executive, said: "We will also begin to see the full effects of the economic situation take their toll on independent British movies. "It's going to be even harder for these types of films to raise credit especially through bank loans. Therefore the Lottery funding that the UK Film Council provides will become even more important."