TIGA, the trade association representing the UK games industry, said today that the news that Babel Media, the Brighton base outsourcer, is planning to move to Canada, confirms that the UK games industry is at a competitive disadvantage because of a lack of a tax break for games production.
Richard Leinfellner, CEO of Babel Media, said that Babel was reviewing the future of its Brighton base. He said: "There is a brain drain in the UK while Canada is thriving, and benfiting from tax breaks that can save local studios thirty to forty per cent on production costs.
So like THQ, EA, Ubisoft, Square Enix and many more, Babel is taking advantage of these initiatives already."
Babel Media has put its staff into a consultancy period and is asking if they would move to Canada.
Dr Richard Wilson, TIGA CEO, said:
"Babel's decision confirms that the UK video games industry is suffering from a brain drain fuelled in part by Canadian tax breaks. The UK games industry is at a competitive disadvantage. Canada and other key competitors have tax breaks for games production while the UK does not. The Coalition Government must wake from its slumber. If the Coaliton Government wants to see a thriving video games sector then it must look again at TIGA's proposal for a tax break for games production."