Film production in the UK was up by a third in 2000 thanks to movies such as Harry Potter and the Sorcerer's Stone, a report has revealed.

A record �540m was invested in the UK film industry last year, said The Film Council, which has sole responsibility for public film funding.

Other high budget productions have included 51st State and Tomb Raider.

Steve Norris, the British Film Commissioner, said: "We are delighted to see such a vast increase in revenue for the British film community in the UK and proud to see such a strong indication of the growing international awareness of British film-making talent found here."

'Incredible success'

Film Minister Janet Anderson said: "The government wants Britain to become a hive of film-making activity and a centre for expertise and excellence."

Tax incentives brought in in 1997 had helped secure large levels of inward investment for the film production industry, she said.

But Mr Norris warned against complacency.

"Without doubt the combination of the weaker pound against the dollar and fiscal breaks have proven to be major incentives in continuing to attract foreign productions to our shores," he said.

"However, we are highly aware of the increase in global competition for this business and without the continued support from government in the form of tax breaks the incredible success we have seen from this year may be short-lived."