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'Industry giant' fragged UK games developer tax break

Website claims govt bowed to big-player pressure

Why did the Liberal Conservatives can a plan to give UK games developers tax breaks? Because "one of the biggest games companies in the world" persuaded them not to.

So claims game creation website Develop, though it doesn't feel able to say which major developer leaned on the Treasury despite having "multiple, very trusted sources" for the allegation.

The way said sources tell it, the unnamed industry giant was opposed to the tax break, announced by then Chancellor of the Exchequer Alistair Darling in has March 2010 budget. The company feels that such a move would have given the UK games industry an unfair competitive advantage.

An advantage, we'd point out, like the ones provided to developers in France, Canada, South Korea and a number of other territories to which games development is migrating because of the financial incentives the governments of those countries provide.

UK trade associations have been lobbying for similar tax benefits for some years. Had Darling's plan gone ahead, the new tax break would have come into force next year. But new Chancellor George Osborne pulled the plug on the plan during his budget earlier this month.

The Treasury's own figures put the saving to be made from cancelling the planned tax break at £190m over the tax years 2011 to 2015 - not exactly a huge chunk out of the multi-billion pound national debt reduction plan. ®

Saving

"The Treasury's own figures put the saving to be made from cancelling the planned tax break at £190m over the tax years 2011 to 2015 - not exactly a huge chunk out of the multi-billion pound national debt reduction plan"

It's still 190m quid that needs to be found somewhere. When you're skint, every penny counts.

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Unfair...

It would be unfair for computer games developers to get tax breaks... I mean why should they? I work for a programming firm and we don't get tax breaks, why should you get them simply because you code games? It seemed a bit silly and reactionary in the first place!

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Too right...

£190Million there, another £190Million there, and pretty soon you're talking real money. This "ah well, it's only another few quid on top of the giant stonking debt heap, what does it matter" attitude is what got the country buggered in the first place.

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'xactly so

Seen this so many times... its always possible to make an excellent case why Fred's pet project should be excluded from cuts - after all if it were not a good idea then one hopes it wouldn't have been proposed in the first place. But then you look at your savings and see "hey we treated everything as an exception so we haven't saved anything: we just spent a fortune talking about making savings"

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You're a few years out of date..

EA isn't the villain of the piece any more- something of a change of personnel there, with a head guy who doesn't gnaw live human flesh.

No, Activision, helmed by grinning troll Bobby Kotick, who memorably promised that he'd take the fun out of gaming, for profit, is now more evil than EA ever were. Bullying their devs in a way that even Rockstar could only dream of, cranking out endless soulless sequels in a way that would make even the EA of old dizzy.

Seriously, Activision are probably the worst thing to happen to gaming ever. I'd bet your relatives and house pets that this one was Activision.

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