Labour MP Stephen Timms calls for games tax relief review

Labour MP Stephen Timms has urged the UK government to review games tax relief for its forthcoming budget.

The ex-financial secretary to the Treasury made the suggestion in response to figures from trade body TIGA, highlighting the number of studio closures across Britain in recent years.

TIGA's research shows that 216 new companies entered the UK games industry between 2008 and 2011, but 197 shut down. Limited access to private and public finance was named as a contributing factor to the closures.

"This timely report is a further indication that in government we were right to recognise the growth potential of the video games industry and propose a targeted tax relief to help the sector to grow and create hundreds of highly skilled jobs in the UK," said Timms.

"I urge the coalition government to review games tax relief for the forthcoming Budget."

TIGA convinced 2010's Labour government to introduce a tax credit for the industry, only for it to be scrapped by the coalition. In April last year, secretary of state for culture, Olympics, media and sport Jeremy Hunt said that the issue remains "constantly under review".

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