Government dodges key Scottish Affairs Committee recommendation

May 3 rd 2011

TIGA, the trade association representing the UK video games industry, said today that while it was good that the Government acknowledged that the UK video games industry faced challenges from countries such as Canada for investment, it was disappointing that the Government would not be undertaking a comprehensive assessment to determine the benefits of Games Tax Relief.

TIGA made the comments following the Department for Culture, Media and Sport’s publication of the Government response to the Scottish Affairs Select Committee's Report on the video games industry in Scotland: Second report of session 2010-12. The Scottish Affairs Committee had recommended that the Government carryout an assessment of the benefits of Games Tax Relief.

Dr Richard Wilson, TIGA CEO, said:

“It is good to see the Government recognising that our industry is facing a real challenge in the battle for inward investment. 76 per cent of investment in the UK games industry comes from overseas publishers. The UK is at a disadvantage in this struggle for investment because our key competitors have tax breaks for games production. The UK does not.

“However, it is unfortunate that the Government has not committed to undertake a comprehensive assessment to determine the benefits of Games Tax Relief, as the Scottish Affairs Committee proposed.

“TIGA’s research shows that over 5 years Games Tax Relief would create or safeguard 9,519 direct and indirect jobs (including 3,366 jobs in the games industry),£431 million investment in development expenditure,£394 million in tax receipts to HM Treasury, at a cost of£194 million in tax relief to HM Treasury. In other words, Games Tax Relief more than pays for itself.”

ENDS

About TIGA:

TIGA is the trade association representing the UK’s games industry. The majority of our members are either independent games developers or in-house publisher owned developers.  We also have outsourcing companies, technology businesses and universities amongst our membership.

TIGA's vision is to make the UK the best place in the world to do games business.  We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members.  This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.

To read the Government’s response to the Scottish Affairs Select Committee’s Report, please click here:

http://www.culture.gov.uk/images/publications/Government_Response_to_the_Scottish_Affairs_Select_Committee_Cm_8067.pdf 


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