While Culture Department blocks Develop’s line to Ed Vaizey
The Treasury has issued a response to new calls for game development tax breaks in the UK.
As reported in national media and across numerous industry publications, Tiga today submitted a new paper on games tax relief.
Numerous MPs such as Luciana Berger, Tom Watson and Stewart Hosie have welcomed the report as a matter of urgency.
Tiga predicted that, without government intervention, the UK’s game development workforce would lose over 2,000 jobs – or 24 per cent of its total – by 2015.
A Treasury spokesperson declined to comment when Develop asked if the new report would be treated with a degree of exigency.
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“Decisions on tax are a matter for the Chancellor in the Budget,” the spokesperson said.
Tiga CEO Richard Wilson described the Treasury's response as "woefully inadequate".
Meanwhile, the Culture Department refused to inform its minister Ed Vaizey that Develop was seeking comment on Tiga’s report. It said the issue was for the Treasury.
Vaizey has hitherto been the only government minister involved in games industry matters. That in itself has sparked criticism. Recently Vaizey attended a games-based education conference and was asked why no minister for the Education Department was there to speak.
The culture minister explained he was attending as the minister most engaged with the games sector.
Next week Vaizey will be the sole Government attendee at the launch of the Livingstone-Hope Skills Review; an initiative aimed to make changes to the education system and how it interacts with the games industry.
On the issue of supporting UK developers, the Coalition Government hopes numerous businesses will be buoyed by its corporation tax package.
The Treasury told Develop: “A major package of reforms announced in the June 2010 Budget are aimed at creating the most competitive corporate tax regime in the G20, benefiting all businesses, including the UK video games industry.“
New information published yesterday showed the UK economy fell 0.5 per cent in the last three months of 2010. Chancellor George Osborne blamed “bad weather” for the surprise results.
"Our new research demonstrates that the Coalition Government needs a fresh approach and it needs to engage with the video games industry urgently," Wilson added.
"Tiga is ready to meet a Treasury minister anytime, anywhere, to set out the case for Games Tax Relief and enhanced R&D tax credits."
I've never been much of a one to get involved in politics, but I cannot believe the stance our Government is taking on this whole issue. It's madness and they just appear to be sitting with their fingers in their ears screaming "la la la" whilst watching the industry fall to pieces as everyone ups sticks to Canada.
They're only shooting themselves in the foot by ignoring this issue and need to wake up and realise that they need to take action.
Suffice it to say I wont be voting for either member of the coalition in the next election. At least Labour were considering doing something!
I have a great idea, lets fund massive amount of investment into the Univercity gaming education sector and have them all move overseas after they have finished! What a great prospect!
Chances are, our gaming sector has a certain perception by the policy makers and treasury.
Interestingly, Sir Richard Lambert advocates that the govt not choose winners and the policy to favour various sectors over another will probably not work, due to the NESTA stating high growth is found almost equally in both "high tech and low tech" sectors
The alternatives we should really look at are involving the govertment to support our industry (in ways not reliant on a tax break).
A business environment is so much more crucial than tax breaks itself. With that kind of backing, we can then continue our charm offensive to get the govt on board the potential of the entertainment industry.
Tech spin offs and increasing funding by venture capitalist groups in new engine tech (with multiple cross platform potential) will allow UK to be the next Unity and Facebook entrepreneurs.
Everything else, we can sort ourselves if we hav a gret conversation and alliance between developers & publishers, allowing for joint profit sharing and pooled talent to be globally competetive.
Our experience is that many games companies do not fully utilise their benefits through the R&D tax credit program. We worked for a large game developer which missed over £600,000. The existing system is there and not being fully exploited. free advice at www.helpinghands@jumpstartuk.co.uk
Brian
