Jim McGovern presses the Prime Minister over Games Industry Tax Relief

Jim McGovern presses the Prime Minister over Games Industry Tax Relief

In Prime Minister’s Questions today Jim McGovern, MP for Dundee West, asked the Prime Minister to clarify the reasons for his government’s decision to scrap the computer games tax relief.

Jim McGovern said;

“I was very disappointed by the Prime Minister’s response. He failed to explain why he told me back in July, and to my colleague Luciana Berger MP last week, that the games industry would not be receiving a tax break because it was poorly targeted. Whilst in a meeting with Treasury Minister David Gauke on October 14th I was told that the government would no longer be giving targeted tax breaks to any industry. These two statements are contradictory.””

“The Prime Minister re-stated his policy of simplifying the tax system, yet this does not explain why he said that the computer games industry tax relief was scrapped because it was poorly targeted. If his policy was not to give targeted tax breaks to any industry, why doesn’t he just say that? Clearly he and the Treasury haven’t got their story straight on this issue.””

“This government is confused over the matter and does not have a coherent policy. If the government eventually decides that its reason for scrapping this tax relief was because it is too complicated to administrate, I would be deeply disappointed. The last government demonstrated how specific tax incentives can help industries that need support; the film industry is a perfect example. By removing this option the government may be failing to address the specific needs of specific industries. This would have the result of serving the interests of no-one.””

Mr McGovern concluded;

“This remains an important issue for my constituency; the government’s position is incoherent and I believe it will ultimately harm the computer games industry and those who rely on it. The arguments for offering this tax relief are far stronger than those we’ve heard against it. I will continue to press the government to urge them to change their minds.””

Ends.