TIGA Responds To UK Government’s Tax Breaks Stance

10 Dec 2009 at 11:23:45 by Andy Alderson

UK games industry body TIGA has responded to the news that the Government will not be introducing tax breaks for video game developers.

Speaking after yesterday’s pre-budget report by chancellor Alistair Darling, TIGA CEO Richard Wilson expressed his dismay at the Government’s decision.

“We have consistently warned the Government that without the introduction of a Games Tax Relief the video games development sector will likely decline by 5% each year over each of the next five years,” said Wilson.

“Conversely, if a Games Tax Relief is introduced, then the industry will eventually enjoy annual growth of 4%. In addition, Games Tax Relief will more than pay for itself. Over five years the tax measure would cost £192 million but would deliver £415 million in tax receipts. Games Tax Relief would also secure 3,550 highly skilled graduate level jobs.”

Wilson went on to state that the Government offers significant support for the oil, manufacturing, banking and film industries and questioned why similar support is not offered to the games industry.

"TIGA is convinced that the games industry has the potential to be one of the UK's leading digital industries as we emerge from the recession,” he added.

“We will redouble our efforts to convince HM Treasury and other policymakers of the need to invest in our sector in the form of Games Tax Relief, more generous R&D tax credits and other fiscal measures.”

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