UK Government urged to help games industry
The UK Government has been warned it must take immediate action to encourage the growth of the games industry after it was revealed one in 10 jobs in the sector have been lost since 2008.
- By Stefan Morkis
- Published in the Courier : 05.11.10
- Published online : 05.11.10 @ 05.10pm
The coalition government scrapped plans for tax relief for games firms and Prime Minister David Cameron had consistently ignored calls for him to reconsider, despite the growing economic importance of the games sector.
Mr Cameron said on Thursday he wanted London's east end to become a high-tech rival to Silicon Valley in the USA.
Global software sales increased by 16% between 2008 and 2010 but there was a 9% fall in people employed in the UK over the same period.
Dundee firm Realtime Worlds, which collapsed this year with the loss of 200 jobs, was the latest high-profile company to go bust.
Dr Richard Wilson, chief executive of games trade group TIGA, said, "At a time when the global game industry is growing, the UK development workforce is declining.
"Many of our key competitors provide tax breaks for video games production but no such tax breaks for games production exist in the UK. Investment and jobs are drifting away to other countries."
TIGA also called on the government to improve the current research and development tax credit scheme to boost investment in the games sector.
Underdeveloped
He said the UK invests less of its gross domestic product, just 1.7%, in research and development than any other leading economic power.
Dr Wilson said, "The UK computer games industry is a research and development intensive sector using cutting edge technology to create games for a global market.
"Many TIGA members do use the existing research and development tax credit scheme. However, they tell us that the current system is too narrow in scope and the claims process too complicated.
"We would like to see the tax credit system work more effectively and efficiently for the UK economy."
A new report by TIGA and chartered accountancy firm Grant Thornton says the tax credit scheme for small firms should he widened.
Niki Dixon, tax partner and head of technology with Grant Thornton, said, "The department of business, innovation and skills will shortly be consulting on a reform of the R&D tax credits.
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