
LittleBigPlanet's Sackboy
The coalition government’s decision to drop video games industry tax breaks (proposed by the previous Labour administration earlier in the year) in this week’s so-called ‘emergency’ budget will be a significant blow to developers across the country, that’s for certain.
The UK is home to studios creating some of the biggest names and franchises in the entire multi-billion pound industry, including Grand Theft Auto, Burnout, LittleBigPlanet, SingStar, Football Manager, Championship Manager, Formula 1, Harry Potter, Fable, Need for Speed, and many, many more. It’s one of the biggest producers of video games in the world, and has one of the most passionate gaming communities too. It deserves the same level of tax breaks as the UK movie industry.
Perhaps it’s an indictment of just how people outside the industry perceive it to be the preserve of teenage boys holed up in their bedrooms? I guess Wii Sports and Wii Fit hasn’t made it into the family living rooms of those in Whitehall.
Publishers large and small, from Sony Computer Entertainment Europe, Square-Enix Europe, and Codemasters, right down to mobile phone game developers like Jagex and independent studios like Rebellion and Kuju, had breathed a collective sigh of relief when the Labour government announced plans to introduce the tax relief back in the spring.
It had been seen as a long overdue move, championed by Labour MP Tom Watson, who had called for the economic might of the industry to be rewarded and nurtured further. The introduction of a similar plan in Canada, specifically Quebec, had seen publishers like Eidos and Ubisoft flocking to the region – Montreal is now one of the key games development hubs, and that’s thanks to the government support it receives.
The UK could (and should) follow suit, but I feel that it’s not quite over just yet. If coalition plans to offer further levels of powers to the devolved governments in Edinburgh, Cardiff, and even Belfast, become a reality then regional tax relief could come into force within the next few years.
Scotland of course has a pedigree in producing video games, thanks to RealTime Worlds and Rockstar North (both located in Dundee), but might M4 links with London, the international airport, and a rejuvenated bay area help the Welsh Assembly Government attract studios to set up shop the other side of the Severn in the Welsh capital?
That will of course depend on whether the Senedd receives the powers many would like to see, enabling the Assembly Government the chance to offer tax incentives to one of the most important growth industries in the world – one that may wither dramatically as a result today’s action in Westminster.
Posted in Videogames