Tiga slams Darling’s budget, saying the Chancellor has “missed a trick” in neglecting the game business
Games industry group Tiga has slammed the Labour government for “failing again to back one of the principal creative industries of the future.”
In his Budget speech, delivered on Wednesday in the House of Commons, Alistair Darling failed to materialise any of the promises that Tiga was looking for.
Speaking to MCV on Tuesday, Tiga CEO Richard Wilson said that the government should introduce a 20% tax break on games production, modelled on the recently-introduced French system.
Such an initiative was not found in Darling’s budget, nor any other that would directly aid the games industry.
“It is disappointing that while Alistair Darling plans to spend £671bn over the coming financial year, he could not find the £150 million over five years to invest in the tax break for games production,” he said.
“The Government has missed a trick. Videogames are a growing sector and the UK games development sector is still world-beating,” he added.
“The Government should have used today’s Budget to reinforce success and introduced a tax break for games production. It is disappointing that it failed to do so.”
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Wilson did mention that the newly-announced £750 million Strategic Investment Fund may be of aid to the games industry, in that £50 million of this amount will be allocated to the Technology Strategy Board (TSB), and another £10 million goes to UK Trade & Investment (UKT&I) to help exporters.
“Some UK game developers have already benefited from TSB funding and many have been helped by UKT&I in the past,” he said.
“As an accredited trade organisation, Tiga can work with UKTI’s Tradeshow Access Programme in supporting UK businesses looking to exhibit at overseas trade shows; we hope that some of this additional money for UKT&I will be made available to help even more games businesses attend overseas trade shows in the future.”
...politicians will look up and shout "SAVE US"... and we'll look down, and whisper "NO".
In the USA we don't get handouts from the government. Why do you UK devs always complain and blame the government! USA companies are doing just fine without handouts!
@ USA DEV
err.. maybe you should do a bit of research?
Georgia - 30% tax breaks (http://www.gamasutra.com/php-bin/news_index.php?story=18653)" onclick="window.open ( this.href ); return false;" class="comment_url" >http://www.gamasut...8653)
Wisconsin - 25% tax breaks (http://www.gamasutra.com/php-bin/news_index.php?story=19076)" onclick="window.open ( this.href ); return false;" class="comment_url" >http://www.gamasut...9076)
as recently as YESTERDAY-
Texas (http://www.gamedevelopment.com/php-bin/news_index.php?story=23336)" onclick="window.open ( this.href ); return false;" class="comment_url" >http://www.gamedev...3336)
um.. so you dont get any handouts? really? so what are those?
This is coupled with the fact france has tax breaks, as does Canada. SO its very hard to compete without them.
Given the small number of developers in Georgia or Wisconsin, this isn't a fair comparison. (What are there like 5 sizable ones total?) And in many ways proves the point: tax credits aren't what is keeping your business down. We don't see EA taking up shop in Georgia any time soon now do we!
Maybe your confusion is cause by a lack of understanding of the tax structure in the USA. By which you seem to be confusing STATE credits with NATIONAL tax credits and credits with cash in hand. State taxes are typically low and game developers huddle in some pretty high tax areas: Cali, NY, Mass!
Take for example Wisconsin: "This non-refundable, nontransferable credit can be carried forward for up to 15 years to offset Wisconsin income tax liability." Great. You get a credit to offset your Wisconsin STATE tax liability. Which you would realize is not really a big deal because this is a credit for STATE tax liability taxing your profits - you would be better off to just move to a state where they have little or no business tax!
Additionally, with Obama raising the national tax rates in the USA for small businesses, all these state based tax credits are going to be small potatoes in comparison to the extra taxes small developers will be paying out with Obama's national tax increases.
