Decision Could Create 4500 Jobs, £283 Million Extra GDP
It's been a long time coming, but tax breaks for UK-based game developers has been officially announced by Chancellor George Osborne as part of this year's budget. These tax credits will "support our brilliant video games and animations industries," and more importantly, stop British studios relocating to more financially attractive areas such as Canada and Korea.
As you'd expect, our homegrown developers are welcoming the decision across the board. We've got their reactions and more details after the break.
Lobby group TIGA predicts that the move will create 4500 direct and indirect jobs, £188 million in investment studio investment, increase the industry's contribution to UK GDP by £283 million... and cost just over £96 million in five years. Sounds like a bargain to us.
British studio heads are queueing up to praise the new budget, who believe that the tax breaks will secure the UK's future as a development powerhouse.
Jason Kingsley, TIGA Chairman and CEO and Creative Director of Rebellion (Oxford), said:
Congratulations must go to the Chancellor, the Government and its officials in making this long hoped-for decision. It will save jobs and companies, promote growth, build financial confidence and bring in much needed export income from around the world. It is exciting that they have made such a positive move and we look forward to working with them on the details of implementation. This is also a huge success for TIGA, for its members both old and new, and for the wider video games industry that TIGA represents.
Mark Gerhard, CEO of Jagex (Cambridge):
I am absolutely delighted that the Government has decided to introduce TIGA’s proposals in today’s Budget. TIGA has been the only trade association to have consistently advanced the case for tax breaks for games production. TIGA continues to make a crucial difference to the UK games industry. Thanks to TIGA, the UK games industry is set for desperately needed further growth, investment and innovation.
Colin Anderson, Managing Director at Denki (Dundee):
Games Tax Relief will stimulate much needed investment and innovation in one of the UK's leading knowledge based industries. The leadership TIGA has demonstrated throughout this debate has played a decisive role in getting Games Tax Relief on the political agenda and proposed into today's Budget. TIGA has shown once again that it delivers results for its members and for the wider games industry.
Andrew Eades, CEO of Relentless (Brighton):
UK developers have been competing on an uneven global playfield. Today’s decision by the Government to back TIGA tax break campaign will help ensure that we can remain competitive in the global market.