Aardman, the maker of Wallace and Gromit, has warned that the classic animated cartoon may be forced to move overseas. The studio's boss, Sean Clarke, said challenges in the UK could mean it is made abroad in the future.
Mr Clarke said that the company is struggling with competition overseas and tax relief issues. He also warned there was a skills shortage in the UK.
Speaking to The Guardian, he said: “Children’s television is suffering and what’s produced in this country will go off the edge of a cliff in the next couple of years, unless something is done. The ideas will still be conceived here, but they’ll be made elsewhere.”