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UK Culture Minister Says Game Industry Tax Relief Could Be Years Off

UK Culture Minister Says Game Industry Tax Relief Could Be Years Off

December 2, 2010 | By Kyle Orland

December 2, 2010 | By Kyle Orland
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More: Console/PC

UK Minister for Culture, Communications and Creative Industries Ed Vaizey says that a strict lobbying focus on tax relief for the game industry could cause the issue to be pushed off the agenda for years.

Speaking at a select committee on culture, media and sport, Vaizey said if the industry pushes solely for tax breaks, it "could mean a hiatus for three or four years [or more] before it realistically comes back onto the table," GameSpot UK reports.

Vaizey encouraged game industry representatives "to look at other creative options" for the government to support the industry, such as regional growth funds and "direct support" from the Department for Business, Innovation and Skills.

Some sort of tax incentive for the UK game industry looked set to be part of a Labour budget earlier this year, before the incoming Liberal-Tory coalition squashed those plans over the summer.

The lack of such tax incentives has been fingered by many as the cause for the recent shrinking of UK games industry by 9 percent, at a time when tax incentivizing countries like Canada see growth in their local game industries.

This June, Activision CEO Bobby Kotick warned "there needs to be an incentive provided for us" to make his company invest further resources in the UK.

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