Groundbreaking initiative to generate £190 million in investment expenditure through UK studios
The Coalition government’s decision to introduce games tax breaks in the UK will create and safeguard as many as 5,000 direct and indirect industry jobs, trade body Tiga has claimed.
“Tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry,” Tiga CEO Richard Wilson said moments after the Chancellor George Osborne announced the groundbreaking initiative for the sector.
“Our research shows that Games Tax Breaks should generate and safeguard: 4,661 direct and indirect jobs; £188 million in investment expenditure by studios; increase the games development sector’s contribution to UK GDP by £283 million; generate £172 million in new and protected tax receipts to HM Treasury, and could cost just £96 million over five years.
“Tax breaks for games production will ensure that the UK remains at the forefront of video game development. It will also help to rebalance the UK economy away from an over-reliance on financial services towards a high skill, R&D intensive and export focused industry.”
"Today the coalition sent shockwaves across the sector by declaring its support for games tax relief, two years after it branded such a measure as “poorly targeted”.
Leading developers in the UK games industry from studios such as Crytek, Denki, Blitz and Rebellion have since come out in their droves to express their jubilation over the scheme.
It is hoped that the state aid can once again boost Britain as a leading hub for games development, and put an end to the so-called ‘Brain Drain’ that has hindered the country’s progress.