The hope that Britain’s gaming industry would enjoy a 20% tax break were dashed by government chancellor George Osborne’s budget. The tax break was conceived by Labour during their last term of office to aid UK game developers in their ability to seek investment, to encourage companies to set up studios in the UK and to allow them to better take risks in todays competitive market.

The fact that this is coming after the Conservatives promised to honour the tax break made the announcement all the more bitter to swallow. Dr Richard Wilson, Chief Executive of TIGA, the UK’s trade association for videogame developers, called the move a “betrayal” by the government and that it would “cost the industry millions of pounds in investments”, not to mention losing the UK’s high position in the world market.

ELSPA, the body that represents the UK’s publishing houses, told Gamespot that it was important that without the tax breaks, the games industry and the government must still work together to ensure that policies – which include addressing better access to R&D initiatives – would still be followed.

TIGA is still intent on continuing their campaigning for tax relief for the industry, with support from both Labour and the SNP, in spite of this most unfavorable news.

BBC newspage of the story
Gamespot newspage of the story
TIGA’s website

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