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Tom Cruise Film To Create 500 Jobs In The UK

(c) Sky News 2012

A new Tom Cruise blockbuster is to be filmed at a UK studio, creating 500 new jobs, the Chancellor has announced.

Science fiction thriller All You Need Is Kill, which also stars Emily Blunt, will be made at Warner Brothers' £100m studios at Leavesden near Watford.

Cruise has already started pre-production on the film, which is based on a Japanese novel by Hiroshi Sakurazaka, after finishing work in Iceland on Oblivion.

All You Need Is Kill only received the green light from Warner Brothers last month and is described as a sci-fi version of Groundhog Day.

Cruise will star as a futuristic soldier who becomes caught in a time loop of his last day in battle as he fights a group of invading aliens.

Leavesden Studios has been home to some of the biggest film franchises ever created, including James Bond, Star Wars and Harry Potter.

The Chancellor announced the project as he appealed to technology firms to invest in the UK as part of the latest in a series of Olympic-inspired business summits.

The Government has claimed hosting the Olympics could boost the economy by £19bn and is spearheading a major business drive for new deals during the Games.

Another three investments in east London's Tech City hub by Vodafone (LSE: VOD.L - news) , Barclays (LSE: BARC.L - news) and Tokyo-based mobile social gaming company GREE Inc. were also announced.

Mr Osborne said: "Taken together, these major investments represent a triple whammy for Tech City. Coming so quickly after the announcements from Facebook and Amazon, British technology has hit a purple patch.

"You will not find a country anywhere in the world that is more open to technology, more open to investment and more open for business.

"We're putting in place the right vision and the right policies to help your company succeed right here in the UK. That's why the world's leading technology companies are beating a path to our shores."

He claimed the Government was "leading the world" in supporting technology companies and highlighted changes to the tax system, including slashing the top rate to 45p.

"We have introduced the most generous early-stage investment tax breaks in any country in the world," he added.

London Mayor Boris Johnson said: "It's fantastic that more and more companies are taking advantage of the enormous benefits of doing business in London, and I am delighted to welcome these new additions to Tech City."

Mr Osborne is under intense pressure over his economic plans after grim figures showed GDP shrank in the second quarter by 0.7% and is battling to bring in investment.

Britain is now in the worst double-dip recession on record after the economy started shrinking again at the end of last year.

The Government has been pushing through drastic austerity measures to bring down the deficit but is facing increasing calls to change tack as the economy fails to bounce back.