Government lets down gaming industry

Officials from the gaming industry have said that they feel let down by the government because of the decision not to give tax breaks to the industry.

With more and more people now having access to broadband services many people spend time engaging in online gaming, which has become a huge industry that enjoys massive popularity. However, officials from the gaming industry have now said that they feel let down by the government because of its decision not to grant tax breaks to the industry.

Prior to the recent election the former Labour government had been toying with the idea of granting twenty percent tax relief to the gaming industry. However, Ed Vaizey, the Culture Minister, said that a case ‘had not been made’ for the award of the tax breaks at a recent video game development conference held in Brighton.

Dr Richard Wilson, chief executive officer of game trade association Tigam said that he was disappointed with the government decision, stating: “We had already made a very convincing case to the previous government and both the Conservative Party and Lib-Dems said that they supported tax relief during the last parliament. We clearly convinced them at one point. What’s essentially happened is the Conservative Party – and George Osbourne in particular – reneged on that promise.”

Ed Vaizey said that the decision did not mean that the industry would not be considered for tax breaks in the future, stating: “I understood the video games industry’s disappointment in what happened. There is still further opportunity and I welcome the decision to form a committee to review the tax situation.”

Source – BBC