Basic Instinct II is one of just two Hollywood movies at Pinewood

In 2004, 24,816 people were employed in the movie and video production sector, compared with 31,264 in 2003.

The decline reflects the fact fewer films were being made in an industry hit by uncertainty over UK tax changes.

The general trend has been upward for the last decade, however, with the film and video industry workforce 46% higher in 2004 than it was 10 years earlier.

Last month, Pinewood Shepperton studios recorded a fall in operating profits, attributing the decline to uncertainty over tax breaks for UK films.

With new tax laws not expected until next year, it predicted a further decline in production.

'Protracted process'

Big-budget Hollywood productions have been particularly scarce, with only two - The Da Vinci Code and Basic Instinct II - shooting at Pinewood since the start of the year.

In July, the government announced formal consultations on new tax incentives.

"This protracted process will continue to impact trading for the rest of 2005 and into 2006," said Pinewood chief executive Ivan Dunleavy.

As well as the 24,816 people employed in production in 2004, around 20,000 more were employed in cinemas, according to the Film Council's annual statistical yearbook.