Labour launches new Creative Industries Network

Wants to review taxes relating to creative industries

Last night Labour launched its new Creative Industries Network, designed to connect arts and business organisations.

Shadow culture secretary Ivan Lewis MP announced the scheme, which will review the tax treatment of the creative industries.

"The Conservative-led government has so far failed to provide the strategic leadership which is urgently required, and in education and the arts, they are implementing policies which are damaging the foundations of our creative success," said Lewis.

Trade association TIGA responded to the launch with further requests for the introduction of Games Tax Relief.

"The Labour Party, the SNP, the Conservatives and the Liberal Democrats all publicly supported Games Tax Relief before the last general election. It made economic sense then; it continues to make economic sense now," said TIGA CEO Richard Wilson.

"The UK video games development sector is still the largest in Europe and the global market for video games is growing. However, while other governments in countries including Canada and the USA support their video games industries with sector specific tax breaks, the UK does not. As a result, employment in the UK games development sector shrunk by 9 per cent between 2008 and 2010."

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Latest comments (7)

robert troughton Managing Director, Coconut Lizard6 years ago
Hopefully the industry can work together to put some sensible proposals forward this time... what I saw of previous submissions were misguided and heavily weighted toward big (expensive) AAA studios rather than the industry in general.
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how about general (every industry) lowering of corporation tax yesterday, abolishment of the 50p top rate tax, abolishment of governmental gold plated toilet seats, abolishment of free rail travel to spouses/relatives of TFL and rail, abolishment of squatters rights, abolishment of red tape, abolishment of extortionate MEP fees, abolishment of generous MP travel expenses and usage of accountants from tax payers money, or and a maximum wage for council staff, managers and chief execs - so that we are really all in it together.

After they have considered and run these simple aspects above, then I think the gaming industry as a whole has a fighting chance of some genuine growth and tax incentives. But I'm doubtful, because we're all not in it together, as we're not the top 1% elite.
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The last submission for games tax relief from TIGA was weighted towards smaller projects: the relief was 30% to smaller projects and 20% for larger projects, with projects eligible from 100k. So if your costs were 100k then you got 30k back from the government. This would have made a big difference for most UK games developers, and its a shame that the the Coalition dropped it without any consultation.
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Tamir Ibrahim Programmer, Splash Damage6 years ago
What I don't want to see happening here is what I believe is happening in Canada. In my opinion; monolithic unsustainable(without the tax breaks) studios, constant inter-studio poaching problems and full knowledge that it will all collapse once the tax breaks end.
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Ana Kronschnabl Creative Director, FluffyLogic6 years ago
i still think that tax breaks are all very well...but actually the tax breaks on R & D are far more useful for smaller, more innovative companies.
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R&D tax incentives should be broadened in its cope and application for it to be truly useful. Otherwise, very few benefit
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Chee your comments are right on - reduce the bloat in the UK economy (and hangers on) and make it WORTH while for entrepreneurs and small businesses to employ and invest AND keep their profits and studios will grow. Quebec cannot end their tax breaks as over 8000 jobs would not last without them. Talent is there of course but there is immense talent elsewhere, but the ONLY reason there are so many mega studios in Montreal especially is the tax breaks. Remove them and it would be like a ghost town. I would be surprised to see the breaks end though as the fallout politically as well as fiscally would be immense. The UK could do something (and so could the US) if they reallly wanted to foster entrepreneurs and innovation. Make a LOW tax rate for the builders of those companies and jobs - both corporate and personal of 10% max no matter how profitable and I can guarantee that studios would be headquartered there in their hundreds. After all if you take the risk and that risk create a lot of jobs and therefore taxes for the government and a boost for the local and national economy, then you should be rewarded. Yes I am an entrepreneur and am thinking of myself amongst others but hey, my companies employ close to 70 people now with no assistance and no debt, so my risk perhaps needs rewarding. Just my 2 cents. Don't get me wrong we have a studio in Louisiana because of the assistance and our staff are treated well and paid accordingly but the founders take the risk.
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