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Game tax review a ‘major step forward’

Game tax review a ‘major step forward’

Digital Britain: “The government is serious about this”, says Tiga CEO Richard Wilson

As reported on Develop on Tuesday, the UK Government has pledged to review whether it should implement tax breaks for the games industry.

As guided in the Digital Britain White Paper, Brown’s Government has “committed to work with the industry to collect and review the evidence for a tax relief to promote the sustainable production for online or physical sale of culturally British video games.”

Tiga CEO Richard Wilson, who has been calling for such a measure for many months, told Develop he was delighted with the commitments set out on the White Paper.

“This is major progress,” he said, “and I think it reflects really well on all the games companies who have worked with Tiga, and all the companies who have worked on the Games Up campaign last year.”

“Of course this isn’t a final commitment,” he added, “but we’re making more progress, this is a major step forward.”

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“We weren’t getting this a year ago, two years ago, three years ago. In the past we’ve had some Government ministers suggest that if developers don’t like the tax regime in the UK they should simply leave the country. So this really is progress.”

Wilson also revealed that he had been assured, privately, that this pledge is something that the Government is serious about.

Asked whether an announcement to review the situation was a delay tactic – considering the Digital Britain report went through a review process on its own – Wilson remained encouraged.

“If this is was a delaying tactic then the Government will have been very short sighted, because they would be working against an industry with 28,000 people in, and millions of players. So it wouldn’t be the wisest idea politically.”

“Promises can be seen as half-full or half-empty, and I am an optimist so I see this as half-full,” he added. “This is a success story for the industry. We know it’s not all over but this is a major step forward.”

Asked whether he thinks the review process will be finished by the time the next general election comes round – which could effectively throw the review in flux – Wilson said he wasn’t sure.

“But, even if Labour or an opposition party pledges something in their manifesto about a tax break for games production, this will be a massive step forwards for the games industry.”

“We now have something in a White Paper, with a pre-budget report coming in November, who’s to say they won’t put their proposal in before then?”

“So obviously I hope the present Government takes action before the next election, it really ought to, because as we’ve said before the cost of implementing tax breaks would be just a rounding error for the Government, but to us it will have a mass effect.”

Wilson concluded that, despite Labour’s unsteady future as the UK’s governing party, there is a change of tune permeating throughout Westminster on the games industry, one that is more respectful and understanding.

“We’re hearing such positive noises from the main opposition parties, with the Conservatives and the SNP (Scottish National Party) voicing their support – all this shows that the tide is moving our way,” he added.

Useless

posted by Fran Mulhern Jun 17, 2009 at 9:12 am
1
Fran Mulhern

What a load of utter *******.

Irrespective of the rights or wrongs of the idea, the fact is the government has simply said they'll think about it and look at it. Which is what they've said they've been doing all along - keep an eye on it, change it if necessary. In the recent parliamentary debate, the government seemed to say that the industry would be very pleased with what the Digital Britain report said on the subject - is this REALLY worth getting excited about.

In case Richard Wilson has missed it, there's an election in less than a year and, save for nationally important legislation, then Bills don't become Acts very quickly in Parliament. If they REALLY think this is a major step forward, then TIGA are either very naive or just playing the game. I'd like to think it's the latter but have a feeling it's maybe the former.

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Easy option

posted by Leetah Jun 17, 2009 at 9:35 am
2
Leetah

Predictable cynicism, Fran.

This isn't just 'think abot it and look at it', this is a real engagement with our dev community and official bodies. This is the government dedicationg sections of the DB report to videogames.

Whinge all you want, but this is progess!

L

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Re: Easy option

posted by Fran Mulhern Jun 17, 2009 at 10:20 am
3
Fran Mulhern

Easy option? Cynicism? Let's see.

"The Government has therefore committed to work with the industry to collect and review the evidence for a tax relief to promote the sustainable production for online or physical sale of culturally British video games. This work will balance any potential support with the need for fair competition and ensure value for money for taxpayers."

Firstly, there's a commitment to collect and review the evidence - doesn't say anything will change. Secondly, they're already trying to limit any expectation of help by saying that any help will have to be balanced with the need for fair competition and "value for money for taxpayers". And they're already talking about the "cultural" element that is, I think, present in the French system. Now they might need to do that for EU reasons (which is a whole other argument in itself), but depending on how you define it, then that's also going to cut down on the help that can be offered.

There's an election in less than a year. If you seriously think this will lead somewhere before then, then I'd suggest it's YOU taking the easy option in believing what you're told. And after that there will be a new government and a period of bedding in before anything substantive happens.

But there we go. Have a nice day.

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@Fran

posted by Leetah Jun 17, 2009 at 10:34 am
4
Leetah

I never said anything was going to happen before the next General Election.

And yes as the article points out, which I read *before* making my comments, there's a chance nothing will hapen before the election. So I guess the review's verdict looks as shaky as everything else in the report.

What you're missing is the wider picture. Here we have, after YEARS of silence from the government, a commitment to look at aiding the games industry, with opposition parties putting pressure on as well with their own ideas.

I know this may be a time when people become disillusioned with politics, but I think it's a shame that you can't see how our industry has - for once - been heard.

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Re: @Fran

posted by Fran Jun 17, 2009 at 11:09 am
5
Fran

Yes, the opposition are making noises, and something may come of it. But let's not forget that it's politics - the opposition, whoever they are at the time, always take any opportunity to point score.

The government was saying months ago that they'd "heard" the industry - nothing has changed. No one questions whether the government "hears" the industry. It's whether anything will be done.

But then this is a report that basically wants to indirectly tax the public in order to create an infrastructure that private companies will benefit from - says it all, really.

Now if the government had COMMITTED to introducing tax breaks by a certain date - that would have been real progress. But instead of calling the report what it is, TIGA basically jumps up and down because the industry gets a mention. Talk's cheap.

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Gosh

posted by Leetah Jun 17, 2009 at 12:07 pm
6
Leetah

Christ, I've no idea what your problem is.

Tiga are happy for once. In another article it says that the Games Up campaign founders are happy with it (they are, remember, the organisation that was established because NOTHING was being done), the Conservatives are ready to introduce their own measures, the government said that the games industry is great, Ben Bradshaw said that it's likely tax breaks will come, people have told Tiga in private that tax breaks will come, and you're STILL moaning.

Not cool.

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Re: Gosh

posted by Fran Jun 17, 2009 at 12:24 pm
7
Fran

Erm, isn't that a public board? Can't I say what I want?

I suspect you're the one with the problem;)

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Re: Re: Gosh

posted by Fran Jun 17, 2009 at 12:27 pm
8
Fran

And there's no need to take it all so personally - I didn't shoot your mother;)

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Re: Re: Re: Gosh

posted by Leetah Jun 17, 2009 at 12:51 pm
9
Leetah

Sorry, It's just frustrating to see so much negativity.

I guess I do have a problem in that I tend to bundle a large selection game commentators as total ****s (usually the stupid emo kids), and I was hoping I was going to see a bit more support on Develop.

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Support

posted by Ferdinand Jun 17, 2009 at 1:00 pm
10
Ferdinand

Why is anyone even remotely associated with videogames now all of a sudden so incredibly hard to please?

We have FFXIII!
"Not exclusive"

We have Left 4 Dead 2!
"Support the first or we boycott"

We have a downloadable content system that you never even imagined would exist!
"I can only download five demos in the background"

We are looking at dramatically changing the health of the UK's game industry!
"What's taking you so long."

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Re: Re: Re: Re: Gosh

posted by Fran Jun 17, 2009 at 1:04 pm
11
Fran

Of course I support anything that helps the industry. My point is simply that yesterday's report is not some kind of major breakthrough, as reported. It's crumbs from a table, and barely that.

Wait and see. If any tax breaks come, they'll be a case of too little, too late. And if they don't come before the election, watch the Tories dither forever about it, and then blame it on Labour for leaving the country's finances in a shambles.

Yesterday's report, whilst encouraging, is NOT a "major step forward". It's nothing that hasn't been going on in the background for months anyway. And if it's going to keep going on for months, then what's the point? Either **** or get off the pot, metaphorically speaking. Instead of praising the report, TIGA etc should be pointing out that we're no close now to a satisfactory conclusion than we were a week before the report was released - ie, it changes absolutely nothing - and pointing out that every single day that the government dithers is another day that other territories pump more money into their creative industries so they can pull ahead of ours.

But hey - that's just my opinion. Pardon me for caring enough to get pissed off by it;)

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Too Little Too Late?

posted by z_m_ Jun 17, 2009 at 1:34 pm
12
z_m_

Fran,

I fail to see how this is too little, too late. Without wanting to sound rude, saying something like that is slightly narrow-minded, in my view.

Game devlopment, just like business, always flows towards the best location at the time. So even if the UK had no industry at all right now, measures to improve the tax break system would invite projects over.

The UK has an amazing talent base, with the help of Labour I truly believe we can climb back to old form, and I don't think Labour, the Tories or anyone else are ignoring how good an idea it is.

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Re: Too Little Too Late?

posted by Leetah Jun 17, 2009 at 1:53 pm
13
Leetah

Actually, Zem, I'm seeing a an increasing number of developers leave the country. This needs to be done soon!

But I believe this will happen.

Back to work for me,

L

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Re: Re: Too Little Too Late?

posted by Fran Jun 17, 2009 at 2:00 pm
14
Fran

z_m_, like Leetah said, a lot of developers are already leaving here for elsewhere. I know a bunch from the old Swordfish and Venom studios who went overseas. They won't be back in a hurry, either. The talent base you're talking about is being eroded. Partly by people going overseas, and partly by the increased tendency to outsource artwork, meaning we're bringing on less junior artists ourselves - but that's a whole other story.

I'd love to be wrong about all this, but time will tell.

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Yes!

posted by Mr Agree Jun 17, 2009 at 2:22 pm
15
Mr Agree

sounds like a vicious circle, with UK studios getting 'weaker' talent and therefore spinning into motion weaker games and worse sales and more people moving elsewhere.

I agree with Fran, this is a matter of urgency

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Re: Yes!

posted by JP Jun 17, 2009 at 4:40 pm
16
JP

Yes, it's a matter of urgency, but Tiga can't just blast 'FucX you guys, you should have done this earlier - oh yeah, hurry up with it, you ****s!' It's political suicide - the organisation has to be 'on message' to make sure that the Government keeps talking to the industry...

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