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.””