Shadow Culture Minister Ed Vaizey has slammed the UK Labour government for its lack of support for the domestic games industry.

“NESTA’s research suggests the UK videogames sector could shrink by 16.5 per cent over five years, resulting in the loss of more than £180m in external investment and nearly 1,700 jobs. As in so many other areas, Labour ministers simply do not seem to care that we are falling behind our competitors in a critically important economic growth area,” he told attendees at the London Games Conference.

“Gordon Brown’s economic mismanagement means the UK government simply has not had the fiscal headroom to offer the kind of support that has been available in some other countries. But just because they cannot offer tax breaks, does not excuse them actively doing down the industry.

“I would love nothing more than to work with you to facilitate the investment and risk-taking the industry needs. We are campaigning at a time when Britain is broke, but this creates an opportunity to shape policies that assist the high tech entrepreneurs that will drive our economy in the future. The videogames sector must play a key part in this.

“Politicians need to take this industry seriously and promote you consistently. The principles of our approach are clear. The industry needs a voice at the national level, and we will explore how best to effect this. There needs to be a renewed focus on the skills you need to continue to grow. And when possible and when necessary, we will provide the right investment, business and fiscal environment to allow you to compete.”

Trade body Tiga predicted today that the UK development sector will decline by 25 per cent within five years unless the government introduces tax breaks for the games industry.