AROUND 14,000 film and screen jobs could be lost when Britain leaves the EU, a report has claimed.

If the UK fails to conclude a deal with Europe and defaults to World Trade Organisation rule, the lucrative screen sector may also productions tail off by up to 17 per cent.

The study, compiled by economists Oxera which wrote the report for the British Film Institute, was presented to the Screen Summit at the Edinburgh International Film Festival.

One of the firm's partners, David Jevons said should the UK negotiate a way of retaining access to the European Economic Area (EEA), a market that includes non-EU states Iceland, Liechtenstein and Norway, the impact would be less severe.

The productivity of the UK screen sector, which is worth around £6 billion, would in this circumstance, the report estimates, reduce by two per cent and lose 300 jobs, out of the 186,000 people directly employed.

Crucially, the loss of freedom of movement of people working in the industry in Europe and the UK would "erode the available pool of staff and talent across the country,...and would also adversely impact the high skilled activities in VFX [visual effects], post production, animation and video games".

And the Oxera report echoed another presentation by Sunniva Hansson, of media law firm Wiggin who emphasised that losing funds from Creative Europe and the European Regional Development Fund (ERDF) would "deprive mainly smaller, independent and TV programme producers from both funding for their content, as well as support in participating in industry wide forums and conventions".

The best case scenario outlined in the report is an European Free Trade Association (EFTA) style arrangement between the UK and EU nations.

The report says: "[It] would mean that the UK would be likely have to retain the freedom of movement" and adds: "Given the current nature of the negotiations with the EU, the UK is unlikely to be able to make such a deal."

It adds: "If the UK reverted to WTO membership with no screen sector domestic policy changes, the impact on the sector would be highly negative."

One potentially positive outcome for the screen industry is the depreciation in the value of the pound, Mr Jevons said, and, if the UK was to sign free trade agreements with non-EU countries, could stimulate business with film makers and companies from outside the EU, such as the US and the Far East.

Mr Jevons said that generating new trade deals with the US or Far East that could benefit the screen industries would be "very challenging."

Amanda Nevill, chief executive of the British Film Institute, said it was clear the organisation and the film industry may have to "work very hard for the [film industry] to be as good as it is now."

Guy Daleiden, chief executive of the Film Fund of Luxembourg and deputy chair of the European Film Agency for Directors, said European film "needs the UK as a partner" and "you have made the most fabulous stories, fabulous films and we don't want you to miss this opportunity".

And he added: "You are not out until you're out.

"There's still much appetite from EU directors to work with the UK."

Culture secretary Fiona Hyslop said: "We want a thriving and fast growing creative industries sector, in which film and television play a key role.

"One that relies on creative people building skills, expertise and knowledge through exchange and dialogue – an approach this international film festival exemplifies – and one that freedom of movement provides in the Single European Market.

"That’s why the Scottish Government is calling for a new, more inclusive approach to Brexit, with the process opened to more voices and to all parts of the UK.

"We will do all we can to work for your interests and to maintain the benefits you currently enjoy as part of the EU."