TORIES FAIL TO INVEST IN GAMES GROWTH INDUSTRY

TORIES FAIL TO INVEST IN GAMES GROWTH INDUSTRY

INDUSTRY COULD HELP SCOTTISH RECOVERY

SNP MSPs have today expressed their anger that the Tory/ Lib Dem budget
did not invest in Scotland’s games industry despite its potential to lead
recovery in key parts of the Scottish economy.

Going directly against claims by the new UK Government that they would
invest in areas that would produce economic growth the Chancellor today
dumped plans to introduce tax relief for the video games industry.

SNP MSP for Dundee West Joe FitzPatrick said:

“Today’s dumping of tax breaks for the games industry is bad news for
computer games companies and the staff they employ across Dundee. There is
a real danger that we will now lose out to countries such as Canada and
France who have boosted their computer games industry by introducing tax
relief.

“We all accept there is a need to get out economy in control, but dropping
of games industry support doesn’t make sense, as any tax relief would be
outweighed by the increased growth in the sector.  A recent report by the
games industry body TIGA has shown that over five years the tax breaks
would cost an estimated £192 million but would deliver £415 million in tax
receipts. The fact that the Chancellor has chosen to ignore this shows
that this vital industry for Dundee and for Scotland is just not important
at Westminster.

“Reports by the Computer games industry show that Dundee could lose 200
jobs over the next 5 years as a result of a failure to implement tax
breaks, whereas introducing tax incentives would create 350 Graduate level
Jobs and £45 million of extra investment in Dundee.

“Both Labour and Tory Chancellors have failed to give the support the
games industry needs.  If Labour had listened to the industry earlier and
introduced this tax properly in previous years the Tories would not have
found it so easy to drop.

“It is clear that when it comes to growing Scotland’s economy it is only
the SNP that has our industry at it’s heart and I will continue to work
with TIGA and others in the industry to put support for growth back on the
agenda.”

SNP MP for Dundee East and Treasury Spokesman Stewart Hosie said:

“This is a Budget bombshell for the computer games industry, which will
undermine jobs and investment in a sector that the Treasury should be
supporting.

“It is a cruel blow coming just months after we secured a commitment by
the last government to deliver a competitive tax incentive. This reversal
will pull the rug from under the games industry and put vital jobs at
risk.”