Dundee’s video games sector was dealt a blow today when Chancellor George Osborne announced he is abandoning plans to introduce tax breaks for developers.
His decision comes just three months after the previous Labour government said a tax relief system for developers was to be created.
He described the plans as “poorly targeted” during his Budget.
Developers and trade organisation TIGA said he had made the wrong decision.
They had claimed that homegrown games companies cannot compete on an even playing field with overseas firms who are able to take advantage of tax breaks offered to developers in countries such as Canada and France.
TIGA chief executive Dr Richard Wilson said, “Unless the coalition government introduces games tax relief or a similar fiscal measure then the UK will forfeit millions of pounds in inward investment, jobs will be lost and we will cease to be a leading developer of video games.”
Dundee City Council’s city development convener Will Dawson said the move was “extremely disappointing.”
For full coverage of the coalition government’s emergency Budget, and reaction to it, see Wednesday’s Courier.
Photo used under Creative Commons licence courtesy of Flickr user altogetherfool.