You have to hand it to Ed Vaizey. After all but promising tax breaks for the video game industry, he willingly went down to Brighton last week to meet industry professionals and explain why the tax breaks were scrapped. It would have been just as easy for him to stay away, but given his self-styling as the Conservative the industry can talk to, he faced his critics head on.
With a steady flow of investment supposedly heading to France, Canada and an array of other countries that offer generous tax breaks for developers and publishers, it was deemed that Britain too needed a similar incentive scheme to remain competitive. On this Vaizey said “to put it bluntly, you haven’t made the case for game tax breaks, because the chancellor didn’t accept it in the Budget. [...] But don’t think just because we don’t have tax breaks the industry is going to fall over. That’s just so wide of the mark.”
The culture minister reiterated the point that beacuse of the challenge of bringing down the national deficit, “certain other priorities fell by the wayside.” Rather than concentrate on one particular sector, the Government has instead opted for more broader measures, including lowering coportation tax and providing R&D incentives. He told the assembled developers that with these measures, the UK “remains in an environment where you can compete.”
From all reports, it sounds like the minister stood up well to the test handed out by the assembled developers, but it wasn’t all flawless. Despite his appearance no doubt boosting his standing, he was left short on many answers, mainly when in reference to Chancellor George Osborne. On more than one occasion he deferred the answer, effectively saying that the decisions lay elsewhere.
That said, along with MPs like Labour’s Tom Watson, this more hands-on approach to industry liaison is hugely positive.
The matter is not closed, however, and Vaizey went on to say that “the Treasury is always open to rational argument and debate.” This surely provides a glimmer of hope to the decision of ELSPA and TIGA to combine their efforts when it comes to campaigning for tax breaks. This concerted effort can only prove beneficial for all associated to the industry.
I make my living as a programmer at a British games developer. In my spare time I try and spread myself between writing, gaming, goalkeeping, rolling dice and keeping my hair blue. Somewhere around that my wife and rabbits fit in. Disclaimer: the views expressed are my own and do not neccessarily reflect those of my employer
