"Our research shows that Games Tax Relief should generate and safeguard: 4,661 direct and indirect jobs; £188 million in investment expenditure by studios; increase the games development sector's contribution to UK gross domestic product by £283 million; generate £172 million in new and protected tax receipts to Her Majesty's Treasury, and could cost just £96 million over five years," TIGA CEO Dr. Richard Wilson stated today.
With some luck, the relief will help slow the "brain drain" occurring in the UK games industry following numerous studio closures.
Wilson also said, "Tax breaks for games production will ensure that the UK remains at the forefront of video game development."
That's a nice dream, but current tax break champion Canada and many others are ahead of the UK by a mile ... er, kilometer.
TIGA Delivers Games Tax Break in the Budget
TIGA secures decisive victory for UK video games industry
TIGA, the trade association representing the UK Games Industry, said today that the Government's announcement that it intends to introduce a tax relief for the UK video games industry was a "brilliant" decision and "terrific" news for the games development sector.
TIGA, the only trade association to have consistently campaigned for tax relief for games development, described the provision to implement the tax break for games production as a "decisive victory" by TIGA for the UK video games industry which would increase employment, innovation and investment in the sector and would help to power the economic recovery.
TIGA secured Games Tax Relief in the previous Labour Government's final Budget in March 2010, but it was dropped in the June 2010 Budget. Since then TIGA has campaigned relentlessly for Games Tax Relief and the award winning trade association's crusade has now succeeded.
Dr Richard Wilson TIGA CEO stated:
"This is a brilliant decision by the Government and terrific news for the UK video games industry. It is also a decisive victory won by TIGA through audacity, determination and endurance. Like a boxer knocked down by his opponent, we refused to accept defeat and kept getting back in the ring. This victory will benefit not just the UK games development and digital publishing sector but also the wider UK economy.
"Tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry. Our research shows that Games Tax Relief should generate and safeguard: 4,661 direct and indirect jobs; £188 million in investment expenditure by studios; increase the games development sector's contribution to UK GDP by £283 million; generate £172 million in new and protected tax receipts to HM Treasury, and could cost just £96 million over five years. Tax breaks for games production will ensure that the UK remains at the forefront of video game development. It will also help to rebalance the UK economy away from an over-reliance on financial services towards a high skill, R&D intensive and export focused industry.
"For Games Tax Relief to be announced in the Budget is the culmination of a four year campaign waged by TIGA. Government Ministers are to be warmly congratulated for this brilliant decision. The All Party Computer and Video Games Industry Group in the Westminster Parliament, the Labour Party and the Scottish National Party also deserve full recognition for supporting this critical measure. TIGA now looks forward to working with the Coalition Government, the Labour Party and the SNP and other interested parties on the implementation of Games Tax Relief."
Jason Kingsley, TIGA Chairman and CEO and Creative Director of Rebellion (Oxford), said:
"Congratulations must go to the Chancellor, the Government and its officials in making this long hoped-for decision. It will save jobs and companies, promote growth, build financial confidence and bring in much needed export income from around the world. It is exciting that they have made such a positive move and we look forward to working with them on the details of implementation. This is also a huge success for TIGA, for its members both old and new, and for the wider video games industry that TIGA represents."
Mark Gerhard, CEO of Jagex (Cambridge):
"I am absolutely delighted that the Government has decided to introduce TIGA's proposals in today's Budget. TIGA has been the only trade association to have consistently advanced the case for tax breaks for games production. TIGA continues to make a crucial difference to the UK games industry. Thanks to TIGA, the UK games industry is set for desperately needed further growth, investment and innovation."
Colin Anderson, Managing Director at Denki (Dundee):
"Games Tax Relief will stimulate much needed investment and innovation in one of the UK's leading knowledge based industries. The leadership TIGA has demonstrated throughout this debate has played a decisive role in getting Games Tax Relief on the political agenda and proposed into today's Budget. TIGA has shown once again that it delivers results for its members and for the wider games industry."
Imre Jele, Co-Founder, Creator in Chief of Bossa Studios (London):
"The decision to introduce a tax credit for games production is a huge success for TIGA, for London games developers and indeed developers throughout the UK. This tax credit will reduce the cost of games development, allowing us to hire more staff, invest more in our industry and create more games. It is good for the games industry and good for the UK economy."
Gareth Edmondson, TIGA Vice-Chairman and Managing Director, Thumbstar Games (Newcastle):
"I am delighted the Coalition Government has finally backed TIGA's call for Games Tax Relief. This is a real triumph for UK developers. It will enable the UK games industry to remain a success story."
Philip Oliver, CEO Blitz Games Studios (Warwickshire):
"TIGA has worked tirelessly to raise the profile of our industry in political circles and today's decision is proof that this campaign has paid off. It is fantastic that the Government is supporting TIGA's Games Tax Relief and we are sure that this measure will grow the industry, create more jobs and lead to higher tax revenues for Government in the future. It is a great result for the games industry and for the UK economy."
KarlHilton, MD, Crytek (Nottingham):
"This is the right decision for the future of the UK games industry and consumers across the world who enjoy playing British made games. TIGA's victory will enable the UK games sector to compete on a more even playing field. It will also promote the creation of high skilled jobs, enhance investment and stimulate an export focussed industry."
Patrick O'Luanaigh, CEO, nDreams (Farnborough):
"The Government has made a wise investment by committing to TIGA's Games Tax Relief today and the whole of the UK industry will applaud them for this decision. TIGA has fought a great campaign on behalf of UK developers and digital publishers. With this result, the UK video games industry should attract more investment and will create more high skilled jobs."
Andrew Eades, CEO of Relentless (Brighton):
"UK developers have been competing on an uneven global playfield. Today's decision by the Government to back TIGA tax break campaign will help ensure that we can remain competitive in the global market."
Lee Hutchinson, CEO, Double Eleven (Middlesborough):
"The UK video games industry is one of the most creative and innovative in the world. This decision will mean we can continue to invest in UK talent, invest more in our studios and create more highly skilled jobs. This is a great day for games developers. It is also a major achievement by TIGA"
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