Review Games Tax Relief says MP

Jim McGovern MP calls on the Creative Industries Minister to review Games Tax Relief‘as a matter of priority’.

TIGA, the trade association representing the UK video games industry, today reiterated Jim McGovern MP’s call in Parliament yesterday for the Government to carry out the assessment of tax breaks for the video games industry as a matter of priority.

Jim McGovern MP raised the issue in Culture, Media and Sport questions in the Westminster Parliament with the Creative Industries Minister, Ed Vaizey MP.

Dr. Richard Wilson, TIGA CEO, commented:

“It’s now five months since the Scottish Affairs Committee recommended that the Government conduct a full assessment of Games Tax Relief. We urge the Government to carry out this review. The UK video games industry is not yet competing on a level playing field because many of our competitors have a tax credit for games production or other similar measures.

With a favourable tax environment the UK will be able to take full advantage of the significant predicted international growth in this highly skilled, low carbon, export orientated industry. A tax break for games production will benefit both the UK video games sector and the wider UK economy.”

Ends

Notes to editors:

1)     The full transcript of the parliamentary oral question and answer is:

Computer Games Industry

10. Jim McGovern (Dundee West) (Lab): What discussions he has had with the Chancellor of the Exchequer on future Government support for the UK computer games industry. <59867>

The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (Mr Edward Vaizey): I discussed future Government support for the creative industries—including the video games sector—with the Chancellor of the Exchequer in the development of the plan for growth which was published alongside Budget 2011. The plan for growth sets out the specific actions that we are taking to tackle major barriers to growth in the creative industries and to create the right conditions for creative businesses to flourish.

Jim McGovern: I do not know about high-speed broadband, but that was a high-speed answer—and I am sure that the Minister will appreciate that it is not the one I was looking for. He will be aware that games companies in the UK are closing and that many of their staff are going to Canada. Ireland is now looking to introduce tax breaks, but for some reason this Government persist in doing nothing. Will the Minister reassure me, the House and my constituents that the assessment of tax breaks for the industry, as recommended by the Scottish Affairs Committee, will be carried out as a matter of priority before more harm is done to this very important industry?

Mr Vaizey: I am mindful of your desire, Mr Speaker, to crack through the Order Paper, which is why I tend to answer questions in a rapid manner. Let me first congratulate the hon. Gentleman on his championship of the video games industry. I know that 150 jobs have been created in the industry in his own Dundee constituency. Measures in the Budget, such as the changes to the research and development tax credit and the enterprise investment scheme, will help the video games industry. I will continue with my vocal and, I hope, practical support for that important industry.

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 games publishers, outsourcing companies, technology businesses and universities amongst our membership. TIGA was awarded‘Trade Association of the Year’ and the‘Member Recruitment Award’ at the Trade Association Forum Best Practice Awards 2010. TIGA has also been named as a finalist in the 2010 Chartered Management Institute (CMI) National Management and Leadership Awards in the category of‘The Outstanding Organisation of the Year Award (SME)’. TIGA is an Investors in People organisation.

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.

For further information, please contact Dr Richard Wilson, TIGA CEO on 07875939643: or email richard.wilson@tiga.org; or contact David Hodges on 02070911653

 


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