How UK games industry responded to tax break victory
Submitted by seanoc on Wednesday, 21 March 2012One Comment
George Osborne’s 2012 budget didn’t please everyone. It was even described as “cynical, deluded and regressive” by one political commentator. But you can’t please all of the people all of the time. Can you?
Osborne did please some of the people, though. Those people are the good folk working in the UK games industry. After snatching away their tax breaks in his first budget, he’s decided that they are necessary and good for the country.
This is how the industry responded to the news.
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Nevertheless, some like Miles Jacobson of Sports Interactive, were reluctant to be too optimistic.
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Share“@PercyBlakeney63 @ViralNinja @stewartgilray been stitched up too many times to be positive about it Andy. Would love to be proved wrong!milessi" class="twitter-newwindow twitter-reply">ReplyPercyBlakeney63 @ViralNinja @stewartgilray been stitched up too many times to be positive about it Andy. Would love to be proved wrong!" class="twitter-newwindow twitter-retweet">Retweet
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Jacobson’s position was
understandable. Tax relief was initially proposed by Labour but those plans were later scrapped by the Tories after they were elected. -
ShareGovernment frags UK games industry
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But things change…
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ShareUK govt makes shock game tax breaks proposal | Game Development | News by Develop
Coalition government reverses position in dramatic Budget announcement The UK government has declared its intention to establish a nation… -
The news understandably delighted
the industry. -
ShareUKIE welcomes video games tax breaks announcement | The Association for UK Interactive Entertainment21 March 2012 – London, United Kingdom – Games and interactive entertainment trade body UKIE has welcomed the announcement made in today’…
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Share“Woo hoo! Tax credits for the creative industries. Finally. Congratulations to UKIE, TIGA & others who have campaigned for it!
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Share“London Buses for the games industry. Nothing for years then computer science at school, high-speed broadband and tax breaks all come at onceian_livingstone" class="twitter-newwindow twitter-reply">ReplyRetweet
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Stewart Gilray, CEO of Just Add Water, gave an elegant response:
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Share
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Ed Fear, of Mediatonic, responded to MCV editor-in-chief Michael French’s feedback request in an equally elegant manner.
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Share“@Michael_French “FUCK YEAH!!!!!!!!!!!!” – Ed Fear, Mediatonicedfear" class="twitter-newwindow twitter-reply">ReplyMichael_French "FUCK YEAH!!!!!!!!!!!!" - Ed Fear, Mediatonic" class="twitter-newwindow twitter-retweet">Retweet
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On a more serious note, the debate turned to how tax relief should be targeted.
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Share“The tax breaks need to support new startups and SMEs more than the big triple-A. UK’s big studios are mostly dead. Support the new shoots.
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Share“Badly implemented tax breaks could be more damaging than no tax breaks at all.
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Different suggestions were put forward
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Share“@edfear really? Hope you don’t count us as a triple A then. I want to be able to lower unemployment & make our games better with the credit.
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So, why is tax relief so important to the UK games industry? Develop ran stories throughout the day with comments from industry veterans on why it means so much.
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TIGA’s Richard Wilson predicts that tax relief “should generate and safeguard 4,661 direct and indirect jobs, offer £188m in investment expenditure by studios, increase the games development sector’s contribution to UK GDP by £283m and generate £172m for the Treasury.”
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ShareTax breaks for UK games industry
21 March 2012 Last updated at 11:25 ET The games industry predict tax breaks will create more jobs Long-awaited tax breaks for the games … -
UK industry legend Peter Molyneux says that with tax relief, “we can look forward to Britain becoming the centre for innovation and investment”.
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ShareMolyneux: Game tax breaks can help UK innovation | Game Development | News by Develop
New government policy ‘is good for big and small studios alike’ British development figurehead Peter Molyneux has applauded the Governmen… -
Square Enix Europe CEO and president Phil Rogers hopes that it will stimulate growth.
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ShareSquare Enix: Tax breaks will stimulate growth | Game Development | News by Develop
European CEO and president sees Budget address as ‘a big step forward’. The CEO and president of Square Enix Europe has expressed his bel… -
Activision Blizzard boss Bobby Kotick sees it is a positive step in the right direction.
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ShareKotick: UK tax breaks are “a great first step” | Game Development | News by Develop
Written statement to Develop says “This is a great first step and should put the UK in a stronger position” One of the most powerful men … -
And Eidos boss Ian Livingstone says they will offer the UK a level playing field.
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ShareLivingstone: Tax breaks level the global playing field | Game Development | News by Develop
Budget announcement and computer science U-turn ‘reposition UK as a world leader’ The introduction of game tax breaks repositions the UK … -
It increases the likelihood that the UK developers can continue to produce games of this calibre:
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Share““Great British video games made in the UK include Moshi Monsters, Little Big Planet and Lego Star Wars” points out DCMS #UKgamestaxbreaksMichael_French" class="twitter-newwindow twitter-reply">ReplyUKgamestaxbreaks" class="twitter-newwindow twitter-retweet">Retweet
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So who deserves praise for making this happen?
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Andy Payne of the Mastertronic Group praised MPs Ed Vaizey and Jeremy Hunt for their constant lobbying on behalf of the UK games industry.
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Share“@edvaizey @Jeremy_Hunt props to you both for the production tax credits on behalf of @UK_IE @TIGAMovement @ian_livingstone and all of us!PercyBlakeney63" class="twitter-newwindow twitter-reply">Replyedvaizey @Jeremy_Hunt props to you both for the production tax credits on behalf of @UK_IE @TIGAMovement @ian_livingstone and all of us!" class="twitter-newwindow twitter-retweet">Retweet
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Michael French acknowledged industry bodies TIGA and UKIE.
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Share“Well done to @TIGAmovement, which has been like a dog with a bone on #UKgamestaxbreaks, and @UK_IE which has supported its many callsMichael_French" class="twitter-newwindow twitter-reply">ReplyTIGAmovement, which has been like a dog with a bone on #UKgamestaxbreaks, and @UK_IE which has supported its many calls" class="twitter-newwindow twitter-retweet">Retweet
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Ian Livingstone is also signalled out for praise for leading the project.
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Share“Plus @ian_livingstone deserves a round of applause – he has been the Gov’s go-to man on this. A true legend for UK games. #UKgamestaxbreaksMichael_French" class="twitter-newwindow twitter-reply">Replyian_livingstone deserves a round of applause - he has been the Gov's go-to man on this. A true legend for UK games. #UKgamestaxbreaks" class="twitter-newwindow twitter-retweet">Retweet
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Share“@Michael_French @ian_livingstone spot on. Driven the whole project. Brilliant. Great news for the UK. Well done @TIGAMovement @UK_IEPercyBlakeney63" class="twitter-newwindow twitter-reply">ReplyMichael_French @ian_livingstone spot on. Driven the whole project. Brilliant. Great news for the UK. Well done @TIGAMovement @UK_IE" class="twitter-newwindow twitter-retweet">Retweet
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So what’s next? The details need to be ironed out and there will be a consultation period.
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ShareTreasury 'may adjust £50m game tax break fund' | Game – Develop
The Treasury may alter its £50 million initial investment pool for games tax breaks , with the final sum dependent on a consultation per… -
What about outside the UK? Who knows, tax relief may even spread across Europe. That, at least, is the wish of Quantic Dream boss Guillaume de Fondaumière.
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Share‘An important day for Europe’, says Quantic Dream boss | Game Development | News by Develop
‘I’m convinced that other EU countries will now follow the UK’s lead on tax breaks and propel the region back to the top’ Tax breaks for …
