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All main UK political parties to 'support tax breaks'

By Phil Elliott

Tue 30 Mar 2010 4:53am GMT / 12:53am EDT / 9:53pm PDT

Conservatives and Lib Dems pledge to see through financial aid for UK industry post-election


The Trade association for UK Interactive Entertainment

The Conservatives and Liberal Democrats are both committed to supporting tax breaks for the UK videogames industry, regardless of the outcome of the General Election next month, in light of the Labour government's promise in last week's Budget statement.

That's according to pledges made at a panel discussion event hosted by ELSPA last night, and attended by Conservative shadow minister Ed Vaizey, Labour MP Tom Watson and the Liberal Democrats' Don Foster, which featured for the most part discussion based on questions from the audience.

On the subject of tax breaks - inevitably top of the billing after the surprise Budget announcement - it was Don Foster who first claimed that his party would support the measure when it is presented in July.

Shortly afterwards, although he wouldn't comment on whether the Conservatives would implement the same system suggested by the government, Ed Vaizey repeated several times - unequivocally - "We are going to support tax breaks for the videogames industry."

As things stand there's a big question mark over the 'film-style' tax breaks mooted by the Chancellor last Wednesday - support which will be worth 90 million in the first two years - because of the General Election, which looks likely to be set for May 6.

The latest polls predict a hung Parliament, but with cross-party support - and particularly that of the Liberal Democrats - the measures seem to stand a reasonable chance of being implemented in that eventuality. However, even if they do make it through unscathed, the industry won't start benefiting until at least 2011, the first opportunity that the policy could come into effect.

Other topics touched on at the event included the skills issue, with broad consensus that videogames should play a greater role in learning, and the Digital Economy Bill, set to go through next week ahead of the Election being called - a paper which will include the PEGI ratings policy, but also the controversial piracy measures, which Watson accused the Tories, Lib Dems and the Labour front bench of conspiring on in order to hurry through.

"If you make laws quickly, you make bad laws," he said, adding: "Shame on you both [to his fellow panellists] and shame on my front bench." Vaizey responded by calling the plans - which include the 'three strikes' letters and internet suspension for offenders - as "sensible and constrained," and that if the bill didn't pass next week, "a new government would find it very difficult to push through legislation of that complexity."

Don Foster added that the industry deserved to see the wheels set in motion, and denied that crucial sections of the bill had been rushed, while Vaizey blamed the Labour government for leaving it until the last possible moment, and putting the other parties in an "invidious position."

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Fran Mulhern , Recruit3D

863 708 0.8
This is shaping up to be the most interesting election in years. I still think Labour will end up with a small majority - it'll be 1992 all over again, with people taking the whole "better the devil you know" attitude. I've long since lost faith in politicians, but I do think Darling will still be the chancellor after the election.

Posted:6 years ago


Kingman Cheng Illustrator and Animator

962 187 0.2
Yes it's definately shaping up to be the most interesting, but whatever the outcome I think we're all still doomed.

Posted:6 years ago


Fran Mulhern , Recruit3D

863 708 0.8
I should point out it'll be 1992 all over again in terms of the governing party expected to lose but coming out on top. Not in terms of the Tories winning. Just in case people wondered why I said it'd be 1992 all over again (Tory win) then I predicted a Labour win:)

I honestly don't care who wins, just get those tax breaks introduced ASAP.

Posted:6 years ago


Kingman Cheng Illustrator and Animator

962 187 0.2
Fair enough! Ideally, introduce tax breaks, Labour goes, whoever steps in fixes the country. One can dream..

Posted:6 years ago

An alternative to tax breaks could be reduced NI, corporation rates, access to a game fund or loans, and international representation towards other countries, and encouragement to invest in UK games and entertainment industry

Posted:6 years ago


Kevin Clark-Patterson Lecturer in Games Development, Lancaster and Morecambe College

295 28 0.1
NI has already been targetted for increase!

Tax breaks are welcome but it will only go elsewhere...

Posted:6 years ago

NI increases will have to be combated.

NI long stopped being about contributions for its original intent and purposes. why dont they just lump PAYE and NI into a singular = tax...

Posted:6 years ago


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