TIGA: "Good reasons" to believe new government will introduce tax relief

UK games industry trade body TIGA has said that there are good reasons to believe the new Conservative-Liberal Democrat coalition government will honour the games tax relief pledged by the former Chancellor during the March 2010 budget.

It has also said that it looks forward to working with the new government on industry-related issues which also include lower tuition fees for undergraduates studying maths and computer science degrees.

"TIGA is looking forward to working with the new government to advance the video games industry's potential, and in particular to implement Games Tax Relief - the top priority for the UK games industry," said TIGA CEO Richard Wilson.

"Games Tax Relief is needed to ensure that the UK games industry competes on a level playing with its overseas rivals. Additionally, Games Tax Relief will create jobs and boost investment in a research intensive, export oriented industry. This is precisely the kind of tax measure that is needed to help rebalance the UK economy from an over-dependence on financial services.

"TIGA will contact key ministers in the new administration and will aim to work closely with them to ensure the implementation of Games Tax Relief as soon as possible."

The trade body said that a number of statements made by key Liberal Democrat and Conservative members pre-election were good reasons to believe the games tax breaks would go ahead.

On April 30, Don Foster MP, then Liberal Democrat Shadow Secretary of State for Culture, Media and Sport said in a statement to TIGA: "Liberal Democrats support the introduction of a Games Tax Relief. Following consultation on the details, we would implement the Relief as soon as possible."

Wilson added that he had also met with Vince Cable MP in early March and had positive discussions with him on the issue of tax breaks.

"TIGA congratulates Jeremy Hunt on his appointment to the position of Secretary of State for Culture, Olympics, Media and Sport and Vince Cable on his appointment to the position of Secretary of State for Business, Innovation and Skills," he said.

"TIGA also welcomes Jeremy Hunt's recognition that the creative industries 'are vital elements in the UK's economic recovery'. If Games Tax Relief is introduced then the UK video games industry will create jobs, spur investment and contribute to an export led recovery."

"TIGA has published a strategy for supporting our successful video games industry: The UK video games industry: an agenda for the next Parliament," added TIGA chairman and CEO of Rebellion Jason Kingsley.

"We hope that the new government will look favourably on the policy proposals in this paper, including the introduction of Games Tax Relief, more generous R&D tax credits and lower tuition fees for undergraduates studying mathematics and computer science degrees."