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Osborne cancels UK videogame tax relief [UPDATE]

Tuesday, 22 June 2010 14:19 GMT By Joe Anderson

osbourne2

Update: TIGA has issued a statement condemning the Government for its decision in today’s budget, calling it a “broken pre-election promise”.

It’s a bit lengthy, and below the original report.

Original: UK Chancellor George Osborne has confirmed that tax relief promised to the UK games industry by the previous Labour government will no longer go ahead.

During his budget speech at Westminster today, he briefly stated that the “planned tax relief for the videogames industry will be cancelled.”

Former Chancellor Alastair Darling had previously promised the games industry would receive tax relief to bring it into line with the UK film industry.

The UK games industry currently receives no tax cuts, apparently.

Thanks, GI.

Update: TIGA CEO Dr. Richard Wilson has issued a statement condemning the Government for its decision in today’s budget meeting.

“The Coalition Government has broken pre-election pledges made by the Conservative Party and by the Liberal Democrats to support and introduce Games Tax Relief,” he said.

“Unless the Coalition Government introduces Games Tax Relief or a similar fiscal measure then the UK will forfeit millions of pounds in inward investment, jobs will be lost and we will cease to be a leading developer of video games. The UK video games industry is export oriented, high tech, highly skilled and low carbon in output. This is an industry of the future which the Government should be supporting with action, not words.

“With regards to the reduction in corporation tax, this is welcome but does not address the specific needs of the video games sector.”

“Nevertheless, the strength of our arguments, our implacable resolve and our unrelenting focus has ensured that in the run up today’s Emergency Budget, Games Tax Relief has received serious consideration at the highest levels of Government. Additionally, TIGA has created a broad coalition in favour of Games Tax Relief: the Conservatives, Liberal Democrats, the Labour Party and the Scottish National Party have all previously expressed their support for Games Tax Relief. Unfortunately, the state of the public finances has prevented the introduction of Games Tax Relief. TIGA will continue to refine the case for Games Tax Relief, or a similar fiscal measure. We will work with developers and publishers to deliver this critical policy measure. We will not give up. We will also continue to campaign for a range of additional measures to ensure that the UK is the best place in the world in which to do games business.”

Jason Kingsley, TIGA Chairman and CEO and Creative Director of Rebellion Studios, said:

“TIGA has made a real impact in getting Games Tax Relief considered at the highest political level. It is hugely disappointing that the Coalition Government has decided not to introduce this tax measure, especially given the existence of tax relief for other sectors of the economy. However, TIGA will continue to lead the campaign for Games Tax Relief in the months ahead. Games Tax Relief or a similar fiscal measure is the industry’s top priority. Other policy issues are entirely secondary. We need a tax environment which allows UK games businesses to compete on a level footing with our overseas competitors.”

Gareth Edmondson, TIGA Vice-Chairman and Managing Director, Ubisoft Reflections, said:

“The Government has missed an opportunity by not providing for Games Tax Relief in the Budget. However, TIGA’s campaign for Games Tax Relief has raised awareness about the video games industry in Government and in Parliament. The medium-term prospects for Games Tax Relief are positive. TIGA will continue to strive to make the UK the best place to do games business.”

Expect more back and forth for a while yet, we reckon.

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38 Comments

  1. Robo_1

    Horribly short sighted in my opinion. I can understand the need for cut backs, but a fairer way forward would have been an across the board dip in tax relief for all industries which qualify for it, and not the continued snubbing of the video game industry.

    Who can blame so many publishers for upping sticks and setting up shop in Canada instead of suffering the UK’s high taxes.

    #1 5 years ago
  2. Bulk Slash

    Hardly surprising, Labour knew they weren’t getting back in so they spent everything and made promises they knew couldn’t be kept. Thank goodness they’re not still running things.

    #2 5 years ago
  3. varsas

    What an idiotic move by the Conservatives and a bad day for the UK games industry.

    #3 5 years ago
  4. freedoms_stain

    Gaming isn’t a Conservative concern.

    Tories don’t game therefore they don’t give a shit.

    #4 5 years ago
  5. mington

    you should use this picture
    http://tothecommons.files.wordpress.com/2010/04/article-1021078-013af34900000578-916_468x286_popup1.jpg

    #5 5 years ago
  6. StolenGlory

    Surely stimulating our creative industries is the way forward to clawing back that deficit anyway?

    #6 5 years ago
  7. AHA-Lambda

    @5 – yeah please use that pic PLEASE!

    #7 5 years ago
  8. Zarckan

    So who’s coming to Canada with me?!

    #8 5 years ago
  9. Patrick Garratt

    Done.

    #9 5 years ago
  10. mington

    \o/

    #10 5 years ago
  11. mington

    http://www.youtube.com/watch?v=tnBLAcC2DOw

    #11 5 years ago
  12. The Hindle

    Dam left wing politicians insisting on murdering the British spirit :(

    #12 5 years ago
  13. Eregol

    This was by far the most disappointing thing in the budget in my opinion.
    All the talk of helping businesses and helping the economy and they go and do this.
    If you help businesses they will help your economy. More companies would come here, there’d be more start ups in the UK, more jobs etc etc.
    This is the one thing that they just don’t get.

    #13 5 years ago
  14. Bulk Slash

    Yeah they should close some hospitals instead of cancelling the tax cut for games developers. It’s only £1.3 trillion they need to sort out.

    #14 5 years ago
  15. cookiejar

    http://www.youtube.com/watch?v=S5wWXJo9MDw

    #15 5 years ago
  16. Dannybuoy

    We miss you Labour :-(

    #16 5 years ago
  17. Mike

    I love Tory voters. Everything positive the Tories do is because the Tories are great, every shitty thing they do is Labour’s fault.

    #17 5 years ago
  18. Gheritt White

    @12: The Tories are right-wingers, as it happens.

    #18 5 years ago
  19. freedoms_stain

    @14, the point is that by giving a small tax break to support the industry now the government should see a bigger return because the industry should be able to output more high quality games, the sales of which see all sorts of tax go to where?

    #19 5 years ago
  20. The Hindle

    @18 ahh either way there is a phrase regarding politicians that goes like this They all piss in the same pot

    #20 5 years ago
  21. Mike

    The Tories are just going to use the financial crisis to promote their own core party political values because they’re slimy and insipid and only have their own interests at heart at not the nation’s.

    :)

    #21 5 years ago
  22. The Hindle

    :D couldnt have said it better myself Mike.

    #22 5 years ago
  23. varsas

    @Bulk_Slash: If that’s your feeling I guess you’d be all for removing the relief for the Film industry and for that to die out in the UK?

    #23 5 years ago
  24. Gheritt White

    We still have a film industry? :/

    #24 5 years ago
  25. Eregol

    Believe it or not yes.

    #25 5 years ago
  26. The Hindle

    This country really is a shambles anyone else agree?

    #26 5 years ago
  27. mington

    I’ve conquered worse

    #27 5 years ago
  28. Eregol

    Could be worse.
    We could be North Korea.

    #28 5 years ago
  29. Bulk Slash

    @varsas

    Labour did that years ago, that’s why the Bond films are filmed overseas now, as were the Star Wars prequels.

    #29 5 years ago
  30. mington

    WAIT! star wars wasn’t filmed in space?

    #30 5 years ago
  31. Eregol

    @29
    Wrong
    The film industry tax relief is still alive and well.

    EDIT: http://www.hmrc.gov.uk/films/
    Boom

    #31 5 years ago
  32. varsas

    @Bulk Slash: I don’t think that’s true as noted in the article; the tax relief for the gaming industry was to bring it in line with the film industry. Additionally: http://www.hmrc.gov.uk/films/

    #32 5 years ago
  33. Eregol

    Echo echo echo echo

    #33 5 years ago
  34. Petulant Radish

    Yes but it’s much harder to remove things that have been in place for some time compared to reneging on the former governments promises. It’s not just the games industry, there will be many, many more cuts. They also blocked the £80million grant to Sheffield Forgemasters, effectively wiping out a large slice of the UK’s steel industry, I don’t see too many of you complaining about that with such indignity either!

    #34 5 years ago
  35. Eregol

    Because this is a gaming site.
    I might head over to the steel industry forums to vent my rage later.

    #35 5 years ago
  36. Petulant Radish

    Good man, it’s only fair. Watch out for the bronze fanboys trolling the forums though, they’re batshit insane.

    #36 5 years ago
  37. Bulk Slash

    @31

    Ah they’ve changed it, this is what used to be in effect: http://www.hmrc.gov.uk/films/reforms.htm

    If your film wasn’t culturally British you wouldn’t get funding, even James Bond didn’t count because most of it was set in overseas countries!

    #37 5 years ago
  38. NinjaMidget

    @30 yes…of course it was filmed in space…

    santa is also very real!!!

    and boo for this tax relief going down the toilet, i don’t want to have to move to canada!

    #38 5 years ago

Comments are now closed on this article.

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    A teaser video for the second episode of Resident Evil Revelations 2 is available, so if you’ve yet to play the first episode, you may want to skip this. Resident Evil Revelations 2′s first episode is out now. Thanks, GamesHQMedia.

  • North American eShop update is full of Donkey Kong games

    Nintendo has updated the North American end of the eShop with Titan Attacks, Donkey Kong Land, Donkey Kong Country and more. eShop on 3DS Ironfall Invasion Titan Attacks! Donkey Kong Land – Virtual Console Donkey Kong Land 2 – Virtual Console Donkey Kong Land 3 – Virtual Console Luv Me Buddies Wonderland Around the World […]

  • Venture into the Valley of the Yetis next week in Far Cry 4

    The next batch of Far Cry 4 DLC, Valley of the Yetis, releases in March and Ajay Ghale will be tasked with surviving violent cultists and the mythical Yeti. Apparently the cult is looking for a secret hidden in the valley, and Ajay has discovered their motives. The DLC features co-op with a friend taking […]

  • The Butcher’s AK/CAR Mod Pack out for Payday 2, has dino masks

    The 19th DLC pack for Payday 2 title The Butcher’s AK/CAR Mod Pack is available on Steam from today. The pack will run you $4.99/€4.99 and features: 11 new weapon modifications for the AK rifles in the game 11 new weapon modifications for the CAR rifles in the game Four new masks together with their […]

  • Battle Chasers slated for PC, consoles; comic picks up where 2001 storyline left off

    Darksiders creator Joe Madureira and Vigil co-founder Ryan Stefanelli have confirmed a Battle Chasers game and a new comic are in the works at their new studio Airship Syndicate. Speaking to Polygon, Madureira and Stefanelli wouldn’t provide details on the the game, but did divulge it will be an adventure RPG with player-controlled Battle Chasers […]

  • Shovel Knight, Hotline Miami 2 discounted for Sony’s annual Spring Fever Sale

    Sony is hosting its annual Spring Fever Sale which runs for eight weeks and features a new title each week. The sale starts next week on March 3 with the launch of Helldivers. Here’s just a few items included in the sale: HELLDIVERS (PS4/PS3/PS Vita) March 3 Hotline Miami 2: Wrong Number (PS4/PS3/PS Vita) March […]

  • The gold Super Mario amiibo is a Walmart exclusive

    The Super Mario Gold amiibo which surfaced via a CPSIA certificate earlier this month will be a Walmart-exclusive, Nintendo has announced. The gold-colored Mario amiibo will be released the same day as the Mario Party 10 game for Wii U and will run you $12,96 at 3,000 participating Walmart stores in the US. Along with […]

  • Here’s an overview trailer for Final Fantasy Type-0 HD

    As new gameplay overview trailer for Final Fantasy Type-0 HD, culled from the Active Time Report, stream has been sent over by Square Enix. The video provides a look at the history and environments of the Kingdom of Orience; the 14 memebers of Class Zero; the battle system with customizable magic spells; and the ability […]

  • Final Fantasy 15 video gives you a look at the game’s wildlife

    A new video shown by Final Fantasy 15 director Hajime Tabata during the latest Active Time Report, contains a look at the game’s wildlife and ecology. You can watch the full stream two hour stream through here, or a smaller clip courtesy of GamesHQMedia below.

  • Lionhead ventures into the free-to-play space with Fable Legends

    Fable Legends will be free-to-play when it launches on PC and Xbox One. According to Lionhead, the one versus four cross-platform title borrows from MOBA games such as Dota 2 and League of Legends as it will contain free, rotating heroes which will be added to a roster for a two week period. Once the […]

  • Win! 5 pairs of tickets to the Call of Duty European Championships

    We have five pairs of tickets to giveaway for the Call of Duty European Championships, taking place in London this weekend. The event takes place this Saturday February 28 and Sunday March 1 at the Royal Opera House in Covent Garden. Winners can watch teams will go head to head for a $10,000 prize pot […]

  • Republique Remastered has released on Mac and PC

    Republique Remastered, which was announced earlier this month, is now available for Mac and PC. The game is 20% off through Steam, GOG and the Humble Store for $19.99 until March 4. Thereafter, it will run you $24.99. The Remastered edition contains all five episodes of the game, with 1-3 available now and the remaining […]

  • LA Cops coming to Xbox One in March

    Isometric shooter LA Cops is coming to Xbox One on March 13. Already on Steam Early Access, the game looks like it’s been heavily inspired by Hotline Miami. Walk into a room, open fire, leave bloody puddles in your wake. It’s being published by Team 17. Check out the video below for some 70s cop […]

  • We have $500 of Steam Wallet funds to giveaway!

    We’re giving away 10 Steam Wallet prizes worth $50 each to VG247 readers, courtesy of Bundle Stars. All you need to do to be in with a chance of winning $50 Steam credit is to enter your details below. Join the Bundle Stars Steam group for entry in the sweepstake, and gain extra entries for […]

  • Lapsed Final Fantasy 14 players tempted back with 10 day freebie

    Square is offering lapsed FF 14: A Realm Reborn players a chance to come back to the game for 10 days worth of free adventuring. Provided you’ve already bought and registered an account you’ll be able to play free of charge from Feb 27 to March 9. Square wants you to sample the new content […]

  • Advanced Warfare: Sledgehammer looking at “opportunities” to recreate classic Call of Duty maps

    Sledgehammer Games has told VG247 it’s looking at opportunities to recreate classic Call of Duty maps in Advanced Warfare. According to co-founder Michael Condrey, players of the latest Havoc DLC are asking how Exo abilities and verticality can be added to classic franchise maps. “We’re taking a look at some opportunities to really highlight the […]

  • GTA Online reader playlist week 7: and the winner is…

    Stuff was shot. But only one player emerged victorious. GTA Online player e031271 won last night’s VG247 reader playlist, beating myself, Matt and regulars solidorwot and Revolting. Congratulations, Mr e031271. A deserved victory. We play a GTA Online playlist in an open session every Wednesday on PS4, because it’s both funny and fun. Anyone’s welcome […]

  • Leaked screens reveal The Reef as Destiny’s new “social space”

    A handful of leaked Destiny screens seem to confirm that The Reef location will be the new social space in Destiny. The new addition is likely to be revealed as part of the upcoming House of Wolves expansion. Reddit user Megamanexe4 dropped the screens on the site earlier this morning, along with grabs that reveal […]

  • Darksiders creator teases Battle Chasers game

    Joe Madureira, creator of Darksiders, has released art that strongly suggests a Battle Chasers game is in the works. Battle Chasers was a comic book from the late 1990s that suffered notorious production problems between issues and was never finished. Madureira formed Airship Syndicate after the collapse of THQ, where he co-created Darksiders. His latest […]

  • Infamous video nasty Axe recreated in GTA 5

    The trailer for notorious horror movie Axe has been recreated in GTA 5. The shot for shot remake is the work of gigerbrick who has previously recreated exploitation flicks like Machete and Hostel using Lego. The original Axe movie was banned in 1984 in the UK but passed with cuts in the late 1990s. Movie […]

  • Payday 2 for PS4 and Xbox One includes “a year’s worth of paid DLC” for free

    Payday 2: Crimewave Edition will include a year’s worth of paid DLC from the PC version of the game for free. The new-gen version of the game will be available June 2015, and includes almost all of the paid and free DLC released so far for Overkill’s popular first-person shooter. That DLC includes The Big […]

  • Yes, Mortal Kombat X will require Xbox Live Gold or PS Plus

    Mortal Kombat X won’t bypass Microsoft and Sony’s premium online play requirements. Reports that Mortal Kombat X wouldn’t require PS Plus or Xbox Live Gold started circling earlier this week thanks to a communications error. Answering fan questions on Twitter, producer Shaun Himmerick accidentally gave the impression that premium console subs would not be required […]

  • This is what Destiny players most want next

    Destiny patch 1.1.1 has resolved or at least addressed a number of complaints voiced by the community, but there are plenty more. des Destiny community manage David “Deej” Dague has put out a call for Guardians to share their concerns – or rather, what they think the community is most concerned about. “Set aside your […]

  • Google AI can play games now, so we’re probably all going to die

    Google has brought us one step closer to our inevitable slaughter or enslavement by machine overlords. Google has developed an AI that can learn to play video games and devise brand new strategies. Let me just rephrase that: Google has created an AI that can teach itself new skills, including how to play video games. […]

  • First footage of Renowned Explorers: International Society surfaces

    Renowned Explorers: International Society is a turn-based strategy game from the team behind Reus, and it looks great. Renowned Explorers was announced almost a full year ago, but has been pretty quiet since then. Developer Abbey games has now announced that the game has hit alpha, and will be open to select testers soon. You […]

  • Cities: Skylines developer commits to mod support

    Cities: Skylines will fully support the modding community. Hailing from famously mod-friendly publisher Paradox, Cities: Skylines is a no-brainer for mod support – especially as a lack of mod support is one of the things SimCity was so heavily criticised for when it firts launched. In the developer diary below, Paradox’s Jakob Munthe is joined […]

  • Nosgoth update adds Vanguard, many fixes

    Nosgoth, the free-to-play multiplayer brawler set in the Legacy of Kain universe, has been given a significant makeover. The major feature of the latest Nosogth game update is a new playable human character called the Vanguard. “Equipped with mighty throwing axes and a shield, the Vanguard can take more punishment than any human class that […]

  • Xbox Live Gold 12 month sub $40 on Microsoft store

    Microsoft is offering $20 off 12 month Xbox Live Gold subscriptions at the moment. An Xbox Live Gold 12 month subscription will normally set you back $60, but a Microsoft Store promotion has it on offer for $40. The offer is restricted to the US store. Although you can opt to grab your sub as […]

  • Tomb Raider movie script to be penned by TMNT writer

    Tomb Raider will be Evan Daugherty’s second reboot of an established universe. The Tomb Raider movie reboot has signed on a writer and a distributor. Deadline reports Teenage Mutant Ninja Turtles, Divergent, Snow White And The Huntsman and G.I. Joe 3 writer Daugherty will write the film. Additionally, Warner Bros. has signed on to distribute, […]

  • Shelter 2 pre-orders open, launch trailer debuts early

    Shelter 2 is a game in which you are a mother lynx and must protect a den of kittens. Yes, it’s delightful. Shelter 2 is coming to Mac and PC on March 9. Pre-orders are now available on Steam at 10% off or on GOG.com with a free skin and soundtrack, or 20% off if […]

  • That Batman: Arkham Knight trailer is full of codes

    Batman: Arkham Knight’s trailer is like a Transformer – there’s more than meets the eye. The new Batman: Arkham Knight trailer contains a number of codes. Eagle-eyed users have spotted four so far, and work on cracking their meaning is progressing. According to an /r/games thread rounding up results so far, the codes pertain to […]

  • Assassin’s Creed haystacks won’t save you from a fall

    Assassin’s Creed fans, don’t try this at home. Assassin’s Creed characters can survive falls of almost any distance as long as they aim for the haystacks scattered handily throughout the environment. As you probably deduced from your familiarity with common sense, this isn’t a real thing: falling from heights kills you, the same way a […]

  • Why are people buying PS4 and not Xbox One?

    PS4 is outselling Xbox One – but why? A new report may have the answer. Last month, the PS4 outsold the Xbox One in the US again, returning it to the top of the charts after just two months away. Why? What has caused this reversal in fortunes in Microsoft’s home territory? According to a […]