Government backs Britain's development sector - all the reaction and details

As it happened: Games tax breaks live blog

Right we’re closing up our live blog. It’s been emotional. Hope you all found it hepful.

Just to reiterate:
Games tax breaks are coming to the UK games industry, scheduled to be enacted April 2013.

Game Maker creator and YoYo Games co-founder Mark Overmars has questions the tax break’s affect on the rest of Europe, tweeting:

"The question is when the Dutch government will follow. Tax breaks for game companies in the UK will negatively affect us here."

Former Realtime Worlds studio boss and current Channel 4 commissioning editor for games Colin Macdonald has told Develop:

"This is great news for the country’s games industry, and in terms of Channel 4, it will help keep, and create more talented UK development studios for us to give commissions to."

Read the full story here.

Andy Payne gets in on the discussions on Develop, he says:

"Great Britain – Full props to Ian Livingstone who personally drove this right the way from the bottom to the top of UK Gov. Brilliant work."

CEO of nDreams Patrick O’Luanaigh said this in response to tax relief:

“The Government has made a wise investment by committing to Tiga’s Games Tax Relief today and the whole of the UK industry will applaud them for this decision."

Another commenter on Develop:

"GREAT Britain! – First programming at CGSE level, now games industry tax breaks. I get the feeling someone high up wants the UK to be back at number one 🙂 Amazing stuff, can’t wait to get involved!"

Get in on the discussion here. We will be blogging the best comments.

We have just published a timeline for the UK’s painful wait for tax breaks, be sure to view it here!

Inensu boss Paulina Bozek, famous for creating SingStar tells Develop:

"The UK has an excellent and creative talent base – the governments’ support will help us to thrive and continue to innovate ‘at home.’ It’s brilliant news for developers large and small."

Media and Tech lawyer Jill Pollock questions how the EU will react to the scheme:

"Fantastic #UKGamesTaxBreaks esp under this government. Challenge will be EU clearance – will ‘cultural’ grounds work as they did with film?"

Indie outfit Goal 7 tweets:

"It’s great news for the industry"

Young games developers Daryl Fensom tweets:

Congratulations to the games industry for the Tax breaks maybe I can start DarylSoft ! 😛 #UKGamesTaxBreaks

This from one of our comments:

One-way – I’m on the first plane back from Canada, and bringing colleagues! GREAT NEWS!

Join the discussion here.

UK start-up We R Interactive has just told Develop:

"Social gaming companies can choose to base themselves anywhere in the world and still have a global reach – this announcement will incentivise companies like us to set up or remain here which will really benefit the UK."

Ian Livingstone has tweeted:

"London Buses for the games industry. Nothing for years then computer science at school, high-speed broadband and tax breaks all come at once."

This from NaturalMotion boss Torsten Reil: "This is a big and important step towards allowing the UK to compete on a level playing field with heavily-supported countries such as Canada." HERE

Regarding the state aid approval, since cultural tax breaks are effectively blocked across the EU, Britain may have to arrive at another route for state aid approval.

It also means that there will be another Budget before Games Tax Breaks are enacted. Hope you have a strong stomach...

Now, understandably the Treasury says the games tax break measures are “subject to State aid approval and following consultation”.

Government says that, by April 2013, it will introduce tax breaks for the video games, animation and high-end television industries.

Okay there’s not much here. It is not budgeted.

GOVT Budget docs are in…

Mobile Pie’s Will Luton has tweeted:

Deeply ambivalent about the #UKGamesTaxBreaks – I hope in the long run it demonstrably increases jobs and tax revenue for the state.

GOVT tells Develop it will introduce corporation tax reliefs "from April 2013" for the video games sector.

Blitz Games Studios CEO Philip Oliversaid the tax breaks will lead to higher tax revenues for the government:

“Tiga has worked tirelessly to raise the profile of our industry in political circles and today’s decision is proof that this campaign has paid off,” he said.

“It is fantastic that the Government is supporting Tiga’s Games Tax Relief and we are sure that this measure will grow the industry, create more jobs and lead to higher tax revenues for Government in the future. It is a great result for the games industry and for the UK economy.

Crytek’s MD Karl Hilton says the new initiative will promote the creation of highly skilled jobs in the UK:

"This is the right decision for the future of the UK games industry and consumers across the world who enjoy playing British made games.

"Tiga’s victory will enable the UK games sector to compete on a more even playing field. It will also promote the creation of high skilled jobs, enhance investment and stimulate an export focused industry.”


Rebellion CEO Jason Kingsley has commented:

"Congratulations must go to the Chancellor, the Government and its officials in making this long hoped-for decision.

“It will save jobs and companies, promote growth, build financial confidence and bring in much needed export income from around the world.

It is exciting that they have made such a positive move and we look forward to working with them on the details of implementation.”

Tiga’s CEO Richard Wilson said earlier:

"This is a brilliant decision by the Government and terrific news for the UK video games industry. Ministers should be warmly congratulated for this brilliant decision."

Earlier today, UKIE chief executive Jo Twist said this upon news of the tax breaks:

“UKIE will be working hard to promote the UK to the rest of the world as the best place to create all types of games and interactive entertainment formats, from apps, to innovative connected formats, through to big, blockbuster triple-A titles”


Tweet here from the hard-working guys at UKIE:

"Fantastic news in today’s budget with games industry tax breaks announced #UKgamestaxbreaks"

Tiga claims that games tax breaks in the UK could secure and create as many as 4,700 jobs. Here

Mark O’Connell at Creative Assembly Tweets:
"There is going to be tax breaks for the #Games and #Animation industries? That’s handy… "

Colin MacDonad, of Realtime Worlds fame and now at Channel 4, is clearly as shocked as the rest of us.

He tweeted: "Wow. Just wow"

Ian Livingstone believes that games tax breaks can help Britain become a world leader again. Here

The final Budget report has yet to come through. It will hopefully include the finer details of the policy.

Tweet from culture minister Ed Vaizey:
Delighted that George Osborne is consulting on tax credit for video games, animation and high end TV drama"


Tweet us your reaction @developonline



Today he says the 2012 Budget "unashamedly backs business".

George Osborne, the Chancellor, is the man who two years ago said games tax breaks were "poorly targeted", let’s not forget.

And by shock, we mean stunning. Bewildering. Unbelievable.


The Coalition Government has signalled its intent to introduce games tax breaks in a shock announcement made during the 2012 Budget.

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