It may have missed The Budget, but tax breaks for UK games developers will go ahead, MCV can reveal.
High-level industry sources have told MCV that the European Commission has told UK Government officials that subsidies for production are approved, after a long-running investigation into whether they were really needed.
And now major UK studios have told MCV they must prove that they’re worth the investment by matching the glowing success enjoyed by the British movie industry.
“This is far from being the end of the matter,” said Jagex CEO Mark Gerhard. “UK developers need to show that the fight for their introduction has been worthwhile by maximising their potential to deliver a robust, expanding games industry in this country. We should be held in the highest regard, bolstering the British economy and fuelling job creation – things that tax breaks will help reinforce.”
Mode 7’s MD Paul Taylor added: “The industry will put this to good use: more sustainable employment and the chance to try new things are what studios of all sizes are after. This would encourage smaller companies to reinvest and potentially grow.”
It’s likely to be a huge boost to the UK games development scene, which has suffered a number of high profile closures in recent years, including the loss of Blitz last September.
“With the threat of uncertainty now removed, UK studios can now map out their future and stare down overseas competition on a more level playing field,” said Codemasters’ Rod Cousens. “It can only add to inward investment and innovation – the hallmarks of the British creative scene.”