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At one time, the UK was the hub of not only the world’s game development community, but hardware, too. Those days are gone, and while there’s still a significant and successful arm of the game development industry still operating out of the UK, the government’s ham-fisted refusal to encourage corporate growth has handcuffed many local developers.
In response to the important, upcoming budget (which will be forced to address the so-called ’credit crunch’) TIGA, the national trade association for the games industry, has approached the government with a recommendation to actively support UK players. With Canada openly welcoming game companies with an alluring tax relief, it’s looking increasingly vital that local developers, publishers and other games industry sectors are given good reason to remain in the UK.
"The credit crunch, turmoil in the financial markets and declining economic activity constrain a government’s fiscal room for manoeuvre; but constraint is not the same as paralysis. Just as the Ontario administration is supporting its games developers in the midst of difficult economic conditions, so the UK government should back its video games industry," said Richard Wilson, CEO of TIGA.
“UK video games developers have a skilled workforce; experienced management teams; and an effective approach to outsourcing," he continues. "UK games businesses offer high quality games, produced on time and at great value. The 14% decline in the value of sterling against the dollar over the last 10 months has enhanced the inherent value and competitiveness of UK games developers.
“The UK government can build on these competitive advantages in the Pre-Budget Report by announcing a consultation on the merits of a tax credit for games production and eventual reductions in corporation tax. Consultation on these measures would give a powerful signal of support to the UK games industry. Implementation of these ideas in the March 2009 Budget would provide a potent fillip to the UK games development industry.”
“The UK government can build on these competitive advantages in the Pre-Budget Report by announcing a consultation on the merits of a tax credit for games production and eventual reductions in corporation tax. Consultation on these measures would give a powerful signal of support to the UK games industry. Implementation of these ideas in the March 2009 Budget would provide a potent fillip to the UK games development industry.”
Of course, anyone who’s passed through the UK in the last decade is acutely aware of the government’s policy of ignoring recommendations to the point of putting fingers in their ears and going "LA LA LA!" very loudly. What TIGA’s advice really suggests is an imminent decline in local game company’s ability to remain competitive, and hints at a likely deterioration in UK developments as the government bludgeons local industries in an attempt to dig upwards out of economic decline.
Watch this space.
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