The computer games sector has broadly welcomed the publication of a Scottish Affairs Committee report on the state of the industry.
TIGA, the body that represents the video games industry, has backed the committee’s findings that highlight the need to improve education for those entering software and IT development, provide greater incentives to retain skilled people in this country and recommend that tax relief for the industry should be reviewed.
The trade association, whose aim it states is making the UK the best place in the world to do games business, also backed the committee’s findings that the sector needs more government support, calling on Westminster to offer economic incentives to gaming in a similar way that it does to British cinema.
Monday’s publication came on the back of last summer’s announcement by the coalition government to scrap tax relief for the games industry a decision TIGA hopes will be reversed.
CEO Dr Richard Wilson said, “The UK video games industry is high tech, highly skilled and export oriented.
“If the coalition government is serious about its intention of rebalancing the economy then it should invest in the UK video games industry by introducing games tax relief.
“This would create jobs, boost investment, power an export focused sector and generate much needed tax revenue for the government.”
TIGA estimates that tax relief over a five-year period could create or safeguard 9519 direct and indirect UK jobs and could more than pay for itself over the time. The body also predicts that such a move would benefit Scotland directly by creating or safeguarding £28 million in investment over the same period.Start-upAttending the announcement at Abertay University was Chris Wright, CEO of Edinburgh’s Games Analytics, a company founded only last year.
As a start-up firm Mr Wright was particularly keen to attend the publication of the committee’s report and, while pleased at what he heard, he remained adamant Britain’s place in the gaming world is in severe jeopardy.
He said, “It’s a hard market and the games industry is going through massive change. We’re going from boxed products to digitally downloaded games and it’s the same in the music and film industries.
“There are lots of new ideas and opportunities and we’re in the middle of that. It’s an exciting time for the industry but it needs support.
“If we don’t watch out we will see the same as has happened in other industries.”
Although largely supportive of the committee’s findings, Mr Wright was another who could not hide his disappointment that no consensus had been reached on the issue of tax relief.
However, pleased they had recommended the issue to be put under review, he added his belief financial assistance could make or break some smaller companies.
“It’s not as far as I’d like to see them go and that’s a shame as there was real cross-party support for tax relief and the government pulled it after the election.”