TIGA, the trade association representing the UK video games industry, today welcomed Luciana Berger MP’s question on why the Video Games Tax Relief was not implemented by the Coalition Government. She asked the question in today’s (Wednesday 27th October) Prime Minister’s Questions (PMQ’s).
Dr Richard Wilson, TIGA CEO, commented:
“We welcome the issue of Games Tax Relief (GTR) being raised at PMQ’s. The Coalition Government was hoping that GTR would go off the political agenda, but today’s question demonstrates the importance attached to GTR.
“The games industry has the potential to create the private sector jobs the Government wants to encourage with Game Tax Relief’s introduction creating or saving 3,550 jobs and increasing and protecting £415 million in new and saved tax receipts. Unless the Coalition Government urgently reappraises its decision to cancel Games Tax Relief then the UK video games industry will suffer and it will not be able to deliver the jobs, exports and investment so desperately needed to rebalance our economy.””
Dr Wilson added:
“David Cameron’s negative response to Luciana Berger’s question is peculiar. The PM claimed that Games Tax Relief was ‘…not particular successful or targeted…’ Yet both the Conservative Party and the Liberal Democrats promised that they would introduce this tax break before the election.
“The PM told the Confederation of British Industry on Monday October 25th that ‘…part of our strategy is getting behind those industries where Britain already enjoys competitive advantages. All over the world, governments are identifying dynamic sectors in their economy and working strategically to strengthen them.’
“6 provinces of Canada and 7 US states as well as France provide games specific tax credits. Why won’t the Coalition Government enable the UK video games industry to compete on a level playing field with its overseas competitors? The UK has a competitive advantage in the video games sector. Our industry is export oriented, highly skilled, R&D intensive and low carbon in output. If the PM meant what he said to the CBI on Monday then his Government should look again at Games Tax Relief and implement it at the earliest opportunity.””