British developers should be given tax breaks by the government if it is to remain healthy for the next decade, according to the curator of a new exhibition which aims to celebrate and promote British gaming at a time when the industry fears it is operating with one hand tied behind its back.

The Canadian government gives its games industry large tax breaks, paying out 37.5 per cent of salaries and offering various tax holidays among other incentives.  This means a game which just about break even in the UK suddenly becomes hugely profitable if made in Canada and the UK not supporting the gaming industry in a similar way has led to a brain drain abroad.

David Crookes, consultant curator of ’Videogame Nation’, an exhibition which is currently running at Urbis in Manchester, says British development will be left behind if action is not taken.  He commented: "Only a couple of years ago, in terms of video game production Britain was third in the world behind the USA and Japan but now it’s fourth behind Canada and
starting to slip behind France too because there are greater incentives for developers to produce games in Canada and France."

Over the past two years, the number of development staff in Canada has grown by 33 per cent. In the UK the development community has grown by just eight per cent in the same period.  Crookes continues: "The games industry is stable and growing, even during a recession, that’s why some governments are noticing the benefits of encouraging greater development.
They know that by creating the right economic environment for developers, there will be spin-off benefits and a rise in employment which in turn means more tax being paid into the system in the long run."

Figures suggest that more than 1,700 new jobs could be created in the UK if games development in Britain was handed a tax break. And while the government has promised it will review the policy it has not done so to date.  Among the strong backers for a British tax break is the Game Developer Trade Association (TIGA), headed up by CEO Dr Richard Wilson, who adds: "There is no doubt that tax breaks for the games industry in Canada have given a powerful boost to the growth of the industry in that country. We strongly believe in tax breaks for the UK industry, alongside more generous R&D credits and adequate funding for education at all levels.  These elements are essential if the UK is to remain competitive in one of the world’s most important creative industries."

’Videogame Nation’ charts Britain’s gaming history over the past 30 years and runs until September 20 2009. It aims to showcase the best of British talent and highlight the creative work carried out by thousands of employees in the industry.  Throughout the exhibition key names such as David Braben (Elite), Matthew Smith (Manic Miner), The Oliver Twins (Dizzy) and Arthur Parsons (LEGO games) from the British gaming industry will be appearing at unique events, held at Urbis.