Budget Brings no Relief for the Games Industry

Budget Brings no Relief for the Games Industry

We are always looking for a glimmer of hope with any budget... These days it's hard to find any. And that's certainly the case for the UK Games industry. I appreciate we are a niche sector, but the fact that we are a long established (in CG terms) and vibrant industry that allows us to lead the way just goes seemingly forgotten. The petition paperwork will have been 'filed' and once again we find that there is no support.

Richard Wilson said: “The Government’s failure to deliver TIGA’s Games Tax Relief is a dismal decision that displays a complete lack of imagination and one which will leave the UK video games industry swimming against the tide internationally. Our key competitors have tax breaks for games production. The UK does not. Other countries, including Canada, are surging ahead while the UK is struggling: between 2008 and 2010 the Canadian games industry grew by 33% while the UK sector declined by 9%.

“TIGA’s Games Tax Relief would increase employment, investment and innovation in the UK video games sector. Over a five year period Games Tax Relief would create or protect 9,519 direct and indirect jobs (including 3,366 jobs in the games industry), £431 million investment in development expenditure and £394 million in tax receipts to HM Treasury. TIGA’s Games Tax Relief is supported by the Scottish Government and has cross-party support at Westminster. TIGA will continue to campaign for this crucial measure.

There was some light in terms of R&D tax credits but obviously that is spread over many industries and on its own will not help the industry.

Richard continued; “Reforms to the R&D tax credits are very positive and will benefit the UK games industry. However, only the introduction of Games Tax Relief will put the UK on a level playing field with our overseas competitors. Games Tax Relief would be the real game changer for the industry.”

What's next for the UK games industry? Will this decision have a negative impact on the industry? it will certainly stifle growth at the very least... It's a bitter blow for TIGA after all their dedication to the cause, and we should congratulate Richard and the team for all their efforts. We hope that continued pressure will finally see to the government giving us a break....

0 Comments Mark Cass

Posted by
Mark Cass
Thu 24 Mar 2011: 11:30am

Tags: , , , ,


No comments on this article.

comments powered by Disqus