Jim McGovern welcomes Computer Games Industry U-turn
21 March 2012
Dundee West MP Jim McGovern today welcomed the Chancellor’s u-turn on tax incentives for the computer and video games industry.
In today’s budget the Chancellor announced that tax incentives for the computer games industry were to be re-instated, two years after the Chancellor announced the scrapping of Labour’s policy stating that “we will not go ahead with the poorly-targeted tax relief for the video games industry” in the 2010 budget.
Since then MPs, MSPs and trade bodies such as TIGA have campaigned for a reversal of this poor decision.
The government’s u-turn today acknowledges that Labour’s initial policy had been correct.
Mr. McGovern received a message immediately after the announcement from Richard Wilson, CEO of industry body TIGA, to thank him for “helping to make this happen.”
Jim McGovern said,
“I am delighted that after 2 years of campaigning the government have finally seen the wisdom of our argument and have re-instated Labour’s policy of tax incentives for the computer games industry.”
“This is a welcome u-turn but why on earth did George Osborne scrap the tax credits in his first Budget?
“It is utterly bizarre.
“It jeopardised Dundee’s world-leading position and the intervening period is lost time for the Scottish video games industry.
“This is now a start to the future partnership between the industry and the government to ensure the UK computer games sector becomes a world leader, and Dundee will stand to benefit enormously from that.”
“As a result of the work done by myself and my colleagues in Dundee we also have greater support being offered to industries setting up in the Dundee Enterprise Zone.
“This is very positive news indeed.”
Mr McGovern concluded,
“We have had two steps forward from the government today, after a great deal of campaigning.
“However we must remember that the government have cut taxes for the very richest in society while doing nothing to tackle the rising costs of living and the falling value of wages.
“I will continue to campaign to call on the government to better support ordinary people through these challenging times.”