UKIE welcomes Government’s budget for growth
23 March 2011 - London, United Kingdom– UKIE welcomes this year’s budget’s focus on growth, as the government recognises the importance of supporting small businesses and encouraging external investment in the UK.
Whilst UKIE was disappointed that industry specific tax breaks had not been introduced, UKIE was delighted to see: increases to the R&D tax credit rate; the number of University Technical Colleges doubled to twenty four; and measures introduced to help businesses access finance, such as changes to the Enterprise Investment Scheme– all areas that UKIE has been actively lobbying government on.
Other 2011 Budget measures of interest to the interactive entertainment industry include:
- <*>further cuts in corporation tax– down 2% from April*> <*>the introduction of enterprise zones that give relief from local authority rates and access to super-fast broadband*> <*>the creation 40,000 new apprenticeships*> <*>small businesses employing fewer than ten people will be spared any new regulatory rules for the rest of this Parliament*>
UKIE Director General, Michael Rawlinson said:“UKIE welcomes the government’s focus on growth, particularly around supporting small businesses and encouraging external investment in the UK.
Whilst it is disappointing not to have industry specific tax breaks introduced, we were delighted to see increases to the R&D tax credit rate to 200% from April, and then to 225% in 2012. UKIE identified changes to the R&D system as a key area in its pre-budget submission to Treasury and shall be concentrating on making sure that the industry makes full use of these tax credits through practical support in the coming months. A further announcement on this will be made shortly.
Other areas that we have also been actively speaking to government about and were pleased to see included, were the establishment of more University Technical Colleges and measures to help businesses access finance, including modifying rules around the Enterprise Investment Scheme.
UKIE also welcomes the government’s acknowledgement of the creative industries in the Growth Review that accompanied this budget. Of particular interest is reference to the Livingstone Hope review of skills in the video games industry, as UKIE is leading on delivery of the recommendations from this report, to ensure that the industry has the skilled workforce it needs to succeed in the future.
UKIE looks forward to playing a key role in ensuring that its members and the wider interactive entertainment industry can maximise the benefits that they receive from these and other measures introduced in this year’s budget and Growth Review.”