TIGA: 'Budget a victory for UK developers'

UK gaming trade association TIGA has praised elements of today's UK Budget.

The organisation said it had successfully convinced the government in improving R&D tax credits following several meetings with MPs and the Treasury in previous months.

The move should allow studios to invest more in research, create new intellectual property and generate additional jobs in the sector.

"This is a decisive victory by TIGA which will benefit not just the UK games industry but also the wider UK economy," said CEO Dr Richard Wilson.

"TIGA's proposals for the R&D tax credits will deliver 60% to 75% more value to games studios than the current R&D tax credit regime. This could be worth around £7 million to the UK video games industry."

However the firm condemned the government's failure in providing tax relief, a move that would ensure the UK games industry could compete with other regions in the future.

"Conversely, the Government's failure to deliver TIGA's Games Tax Relief is a dismal decision that displays a complete lack of imagination and one which will leave the UK video games industry swimming against the tide internationally," said Wilson.

"Our key competitors have tax breaks for games production. The UK does not. Competitor countries including Canada are surging ahead while the UK is struggling: between 2008 and 2010 the Canadian games industry grew by 33% while the UK sector declined by 9%."

TIGA released a report on the benefits of tax relief for the industry earlier this year. The organisation had previously succeeded in convincing Labour to introduce a tax credit in March 2010 before it was scrapped by the coalition government in the emergency Budget last year.

> Feature: Still Taxing Times For UK Gaming