Wed, Jun 22, 2011 | 00:48 BST
UK MP calls for games industry tax relief review
UK MP Jim McGovern has called on Ed Vaizey, the minister for creative industries, to makes games industry tax relief a priority.
Answering McGovern in parliament, Vaizey referenced the Budget 2011 plan to bulldoze “major barriers to growth” of the creative industry but Mc Govern wasn’t having any of it, GamePolitics reports.
“[The Minister] will be aware that games companies in the UK are closing and that many of their staff are going to Canada,” he said.
“Ireland is now looking to introduce tax breaks, but for some reason this Government persist in doing nothing.
“Will the Minister reassure me, the House and my constituents that the assessment of tax breaks for the industry, as recommended by the Scottish Affairs Committee, will be carried out as a matter of priority before more harm is done to this very important industry?”
“Measures in the Budget, such as the changes to the research and development tax credit and the enterprise investment scheme, will help the video games industry,” Vaizey replied.
“I will continue with my vocal and, I hope, practical support for that important industry.”
Richard Wilson, CEO of prominent trade organisation TIGA, added his voice to McGovern’s in requesting a review.
“It’s now five months since the Scottish Affairs Committee recommended that the Government conduct a full assessment of Games Tax Relief,” he said.
“We urge the Government to carry out this review. The UK video games industry is not yet competing on a level playing field because many of our competitors have a tax credit for games production or other similar measures.”