The UK Film Council says £1.15 billion was spent in the making of 119 films in Britain during 2010. The amount is a rise of 8% on £1.07 billion in 2009.
International film-makers spent more money than ever in Britain last year, investing almost £929 million into the production of 28 films.
Film Council managing director Tim Cagney said the figures "highlight the importance of a strong film sector".
He said they underlined "the vital contribution that film makes to Britain's cultural and economic fabric".
Pirates of the Caribbean: On Stranger Tides, The War Horse, Sherlock Holmes 2 and Tinker, Tailor, Soldier, Spy were among the
However, the BBC reports the number of domestic productions was down in 2010: 72 films were made compared to 83 in 2009.
According to Mr Cagney, this was evidence of "how difficult it is to raise finance for making independent British films".
Audiences spent more than £1 billion at the box office in Britain and Ireland in 2010. Toy Story 3 was the highest grossing title.
The UK Film Council is to close later this year. It was set up in 2000.