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Government to reject games industry tax breaks

Report suggests the games sector is set to be dealt a major blow
The UK games industry will suffer a massive blow when the government today reveals it has no intention to answer the sector's call for tax relief.

Chancellor Alistair Darling's pre-budget report will not include measures aimed at providing much requested development tax breaks, despite games contributing more to the UK economy than the government-aided film industry, reports the Guardian.

In July the government "committed itself to work with the industry to collect and review the evidence for a tax relief to promote the sustainable production for online or physical sale of culturally British video games", but added that any support provided would have to be balanced "with the need for fair competition and ensure value for money for taxpayers".

Obviously 'value for taxpayers' is not a concern for the governments of Canada and France who recognise the importance of gaming to their economy and provide welcome tax breaks for both publishers and developers.

UK developer trade body TIGA said recently that a failure to introduce tax breaks would result in rapid decline for the industry.

In more positive news, the government is expected to invest £10 million in the sector, helping to establish gaming centres of excellence in Dundee and Manchester, creating 30 new companies and 400 new jobs over the next three years.

So just how should we safeguard the position of the British gaming industry? Tax breaks? One off grants? Better training opportunities? Starting education younger by including it in school curriculums or more higher-education level courses? Comments field is open for business below.

computerandvideogames.com
// Interactive
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Read all 7 commentsPost a Comment
Predictable really, but still a shame. Hardly surprising that a f**king moron like Alistair Darling can't see that he needs to encourage one of the - few - growing industries we have in this country now that his boss screwed over our economy.

Still, that's Labour for you...they won't be happy until we're all on the dole!
splitter on 9 Dec '09
Or on New Deal courses, technically still on the dole but considered "employed" Confused

Anyway it's probably because the industry is doing so well's the reason they won't cut it a break and continue to tax the s**t out of it. A**eholes. Twisted Evil
freds1 on 9 Dec '09
I very much doubt many industries are going to get any tax relief soon. Anyway they do seem to be reinvesting back into the industry.

on the whole not devastating news and somewhat sensible for the time being.
quintus on 9 Dec '09
@splitter:
Still, that's Labour for you...they won't be happy until we're all on the dole!

I hope you don't think the Tories will be any better. If anything they'd be worse! Their MPs are constantly berating the games industry for 'promoting violence'; do you want the UK to be like Australia? If yes vote Tory by all means; if not please vote Lib Dem - at least they understand technology and science.
Gerishnakov on 9 Dec '09
@splitter:
Still, that's Labour for you...they won't be happy until we're all on the dole!

I hope you don't think the Tories will be any better. If anything they'd be worse! Their MPs are constantly berating the games industry for 'promoting violence'; do you want the UK to be like Australia? If yes vote Tory by all means; if not please vote Lib Dem - at least they understand technology and science.

Brewster said it best; 'None of the above'.

I was saying yesterday that Ireland were trying to poach Scottish devs by offering great tax breaks. I would hate to think that R* North, Realtime Worlds, Ruffian, Lionhead, Media Molecule and many many others upping sticks and moving across the water. No doubt they would still produce great Games but I want to them to stay here in the UK.
StonecoldMC on 9 Dec '09
Why can't they see the long term advantages of allowing these tax breaks for the games industry. Oh yeah because thou head is inside thou bottom.

MPs are pretty much all the same.. focused on cash and votes..Which is why we are in this whole.

I'm sure the industry can fight through this crappy news Cool
Ellscore on 9 Dec '09
@splitter:
Still, that's Labour for you...they won't be happy until we're all on the dole!

I hope you don't think the Tories will be any better. If anything they'd be worse! Their MPs are constantly berating the games industry for 'promoting violence'; do you want the UK to be like Australia? If yes vote Tory by all means; if not please vote Lib Dem - at least they understand technology and science.

Brewster said it best; 'None of the above'.

I was saying yesterday that Ireland were trying to poach Scottish devs by offering great tax breaks. I would hate to think that R* North, Realtime Worlds, Ruffian, Lionhead, Media Molecule and many many others upping sticks and moving across the water. No doubt they would still produce great Games but I want to them to stay here in the UK.


and the incentive would be what to stay?
like always the in the UK we are always SLOW with everything we do...
eastldn on 9 Dec '09
Read all 7 commentsPost a Comment
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