In the announcement, Lucasfilm President and Episode VII producer Kathleen Kennedy said: "We've devoted serious time and attention to revisiting the origins of Star Wars as inspiration for our process on the new movie, and I'm thrilled that returning to the UK for production and utilizing the incredible talent there can be a part of that."
Kennedy further said that, after her experience working in the UK on films such as Raiders of the Lost Ark and War Horse, "it's very exciting to be heading back."
Lucasfilm representatives previously met with George Osborne, Chancellor of the Exchequer, to negotiate an agrement for producing Episode VII in the UK. According to the Daily Mail, the British government offered tax breaks as an incentive for Star Wars returning to the country. This has been done with other recent films in order to help boost the British filmmaking industry.
Chancellor Osborne is quoted as saying that he is "delighted that Star Wars is coming back to Britain. Today's announcement that the next Star Wars film will be shot and produced in the UK is great news for fans and our creative industries, and it is clear evidence that our incentives are attracting the largest studios back to the UK."
It is also rumored that Episode VII will be filming on location in Scotland.