Game developer trade association TIGA and publisher body ELSPA have both expressed their disappointment over the government’s decision to abandon plans to introduce tax relief for the UK games industry.
“The Coalition Government has broken pre-election pledges made by the Conservative Party and by the Liberal Democrats to support and introduce Games Tax Relief,” said TIGA CEO Richard Wilson.
“Unless the Coalition Government introduces Games Tax Relief or a similar fiscal measure then the UK will forfeit millions of pounds in inward investment, jobs will be lost and we will cease to be a leading developer of video games. The UK video games industry is export oriented, high tech, highly skilled and low carbon in output. This is an industry of the future which the Government should be supporting with action, not words."
Jason Kingsley, TIGA chairman and CEO of Rebellion Studios, said: “It is hugely disappointing that the Coalition Government has decided not to introduce this tax measure, especially given the existence of tax relief for other sectors of the economy. However, TIGA will continue to lead the campaign for Games Tax Relief in the months ahead. Games Tax Relief or a similar fiscal measure is the industry’s top priority.”
Gareth Edmondson, TIGA vice-chairman and managing director of Ubisoft Reflections, said: “The Government has missed an opportunity by not providing for Games Tax Relief in the Budget. However, TIGA’s campaign for Games Tax Relief has raised awareness about the video games industry in Government and in Parliament. The medium-term prospects for Games Tax Relief are positive. TIGA will continue to strive to make the UK the best place to do games business.”
ELSPA director general Michael Rawlinson also said: “Bearing in mind the pre election commitment towards tax breaks made by the Conservatives and the Liberal Democrats we are extremely disappointed by the outcome of today’s Budget. Our industry will be rightly puzzled as to how tax breaks can be lauded before an election, only to be seen as ‘poorly targeted’ and scrapped just six weeks later.
“We understand that this decision has been made in the context of the current economic climate. Yet the Chancellor today spoke of the need for a more balanced economy. If this is to be attained the government must acknowledge that the creative industries are of vital importance. Therefore in the absence of tax breaks it is the essential that the government work with our industry to ensure that the policies which we have outlined - such as addressing the skills gap and better access to R&D initiatives - are implemented.”
Pic: BBC