By David Sillito BBC News arts correspondent

Harry Potter's movie success shows UK films can still make waves

The story is an American classic - The Christmas Miracle of Jonathan Toomey.

It is aimed at an American audience, maybe Christian Americans. But where is it being filmed? Surrey, of course.

At Shepperton studios, UK producer Thomas Mattinson is proud to be making an international product with a British crew and a British set.

"It's a very good export business," says Mattinson. "Their money comes in, we turn it into whatever we turn it into, and ship it back to them."

It's been a good year for British-made movies such as Batman Begins and Harry Potter. They've made 34% of the takings at the UK box office, the best for many years.

But many of these big British hits are still part of the Hollywood machine.

For those outside the system, it can be a struggle. Take Stormbreaker, an adaptation of one of Anthony Horowitz's Alex Ryder books.

"We don't have a big Hollywood studio behind us," explains producer Marc Samuelson.

Cinema problems

"It's one of the biggest independent films that's ever been made, it's quintessentially British and it's all made here, but it's tough."

But most agree both British and American movies are good for the local film industry if they are made here in the UK.

Batman Begins was another UK-made box office smash

"I think we need to be making quintessentially British movies, but at the same time it's important that infrastructure is expanded by the presence of amazing huge American movies," Samuelson says.

But while Hollywood keeps the industry afloat, some feel the problem lies in the cinema.

"We have a fairly healthy production industry but we don't have a very healthy culture in British cinema," says Tom Mattinson.

"We make a lot of small independent movies that sadly don't get see to the light of day."