THE UK Government has been urged to rethink its decision to drop tax relief for games firms after it emerged a grant scheme has triggered a jobs boom in Texas.
One in 10 jobs in the UK video games sector were lost between 2008 and 2010.
Dundee is home to a number of games developers and the sector is seen as key to the future of the city’s economy.
The coalition government scrapped plans for tax relief for games firms shortly after taking office, despite claims the scheme would soon more than pay for itself by creating jobs and contributing more to the economy.
Now a new report examining state incentives to developers in Texas is being held up as proof of how beneficial support for the industry can be.
The Texas Moving Image Industry Incentive Program provides grants to games developers and is responsible for the creation of 1700 jobs in the state between April 2009 and October last year.
Chief executive of games trade organisation TIGA, Dr Richard Wilson, said, “This report demonstrates once again that many governments around the world recognise the economic potential of the video games sector and its ability to create highly-skilled jobs.
“Texas is now one of more than 20 states within the USA offering incentives for video game production and development. The UK Government’s failure to support the video games sector in the face of mounting evidence is incongruous.
“If the right tax incentives are introduced then the games industry can create the private sector jobs that the government claims it wants to encourage.
“TIGA’s proposed games tax relief would create or save 3550 jobs, generate £457 million in investment and increase and protect £415 million in new and saved tax receipts.”
TIGA chairman Jason Kingsley, creative director of development studio Rebellion, added, “Many other governments recognise that the video games industry is an export-oriented sector that can play a part in creating highly-skilled jobs.
“Many other governments recognise the case for sector-specific policies to exploit the potential of the video games industry. Many other governments appreciate that the video games sector is a serious industry that merits support.
“It is time that the UK coalition government followed suit.”
Photo used under Creative Commons licence courtesy of Flickr user wodi.