UK games industry calls for increased tax relief
TIGA, the trade association representing the UK games industry, has called on the government to implement a system of games tax relief – modelled on a similar concession to the film industry.
Dangling their carrot the body argues that such a move would create over 4,660 new jobs and contribute to a rebalancing of the economy away from the tarnished banking sector toward export driven growth.
Wielding their stick however the trade association warns that failure to do so could result in job losses and stymy further growth in an increasingly important sector of the entertainment industry.
Tax breaks are currently offered to games developers in Canada, France, Singapore and the USA, skewing the free market and putting the UK at a competitive disadvantage.
This has seen the UK’s share of global games industry investment decline from 10% to just 3.5%.
John Whittingdale OBE MP, commented: “The opportunity for Britain is clear. The global games industry has grown by 23 per cent through the global financial turmoil, and is projected to grow by over 8 per cent each year to 2015.
“If the right support from Government is forthcoming, the UK game development sector can take advantage of this projected growth, consequently contributing to the rebalancing of the UK economy.”