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TIGA: Delays to Games Tax Relief threatens future of UK studios

Highlighting the pitfalls of bureaucracy

TIGA: Delays to Games Tax Relief threatens future of UK studios

UK trade association TIGA has echoed UKIE's call to the UK Governmentto roll out the planned Games Tax Relief as quickly as possible.

In view of the uncertain fate of Activision's Leeds-based studio The Blast Furnace, TIGA's Dr. Richard Wilson urged the UK Government to "redouble its efforts" on convincing the EU Commission to authorize the tax relief and thus provide incentive for larger studios to consider investing in the UK.

Dr. Wilson, who serves as the CEO of TIGA, pointed to The Blast Furnace as a prime example of a bad situation that needn't have happened.

"While a variety of factors are in play, and will determine the outcome of the consultation process, there can be no question Activision's decision underlines once again the critical importance of and urgent need for Games Tax Relief for the UK video games industry," he stated.

"...we hope Activision will be able to keep the excellent team at The Blast Furnace together and keep the studio in operation."

Reversing a downward trend

Wilson also provided some firm figures for UK policy makers to consider.

"TIGA's own research shows between 2008 and 2011, employment in the sector fell by over 10 per cent and investment by £48 million," added Wilson.

"The introduction of Games Tax Relief will reverse this decline."

Wilson also claimed that the introduction of Games Tax Relief should "generate and safeguard over 4,660 direct and indirect jobs", as well as £188 million in investment expenditure by studios and an increase the games development sector's contribution to UK GDP by £283 million over five years.

Activision CEO Bobby Kotick welcomed the UK Government's decision to provide tax breaks for the gaming sector back in 2012, claiming that the move "should put the UK in a stronger position."


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Representing the former colonies, Matt keeps the Pocket Gamer news feed updated when sleepy Europeans are sleeping. As a frustrated journalist, diehard gamer and recovering MMO addict, this is pretty much his dream job.