A DEAL has been struck to create a film and television production studio in a Glasgow building.

The £12 million project is hoped to be a boost to the sector in the city, attract new business and help retain talent.

Part of the Kelvin Hall complex in the west end will be turned into a studio capable of delivering the scale of studio space that production firms have said is needed to secure the sort of work the city has missed out on.

While Glasgow has been used an outdoor location for many movies and TV series including some Holywood productions it has been lacking the indoor facilities needed to bring in more work.

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Lack of studio space has been a significant barrier to bringing larger productions to the city including higher-budget scripted and entertainment commissions.

The deal sees Glasgow City Council borrowing £4m for the core studio “box and screen” space which will be financed by rental income from tenants.

Another £7.9m will come from the Scottish Government for an expansion that will enable bigger productions to be made at the studio.

Councillors are being asked to approve the deal this week and it is expected the studio will be in operation later this year.

Susan Aitken, leader of Glasgow City Council said: “This exciting plan for the Kelvin Hall will not only establish that kind of facility but do it right in the heart of the city. It shows how serious Glasgow is about fostering and building on a well-deserved reputation as centre of excellence in television production.”

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Glasgow recently was successful in bidding to be one of two regional commissioning hubs for Channel 4, which recognised the breadth of production talent in the city.

It is envisaged that the new studio will enable bigger productions to be made in Glasgow that would previously have gone to cities like Manchester or London.

Aitken said: “Glasgow’s creative industries are hugely important not only to the city’s economy but also its culture and its national and international profile.

“The city is home to an incredible community of independent producers, with access to an enviable pipeline of young talent.

“We know they are in demand all over the country and, often, the world – but we also know that, here at home, there is a relative lack of the kind of studio space they need to be able to win higher-value commissions.”

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Aitken said Glasgow and Scotland have a great reputation for producing some of the best and most successful factual programming in the country.

She added: “This is our chance to keep that talent, those jobs and real opportunities for our next generation of creative Glaswegians right here.”

Culture Secretary, Fiona Hyslop said: “Glasgow’s plans to create studios at its iconic Kelvin Hall with up to £7.9 million of funding from the Scottish Government is a unique opportunity and builds on Scotland’s ambition to drive growth across all aspects of the film and TV sector.

“This new development would support the city’s thriving creative industries sector, help develop our skills base and attract film and TV productions, creating significant social and economic benefits for Scotland as part of our economic recovery.”

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Part of the Kelvin Hall site is occupied by Glasgow Life, Glasgow University and the National Library of Scotland with collections, temporary displays, and a Glasgow Club health and fitness centre.

They will remain and the studio will be created in another part of the large complex.