Cameron: “Difficult Decision,” but UK Tax Breaks had to be Nixed

October 28, 2010 -

During a recent "Prime Minister’s Questions" session,  Labour MP Luciana Berger took the opportunity to question Prime Minister David Cameron (pictured) about the UK government’s decision to not institute tax relief measures for local developers.

Berger, who represents Liverpool Wavertree, stated, according to Develop, “Before the election all three parties pledged to introduce a videogames tax relief to compete internationally on a level playing-field,” before she asked the PM, “Why has the government reneged on that promise?"

Cameron began answering by stating that the government had to make “difficult decisions.”

He continued:

So we have got to take difficult decisions and I think that tax break relief, which was not particularly successful or targeted, had to go. Those are the difficult decisions we have to take.

Dr. Richard Wilson head of industry group TIGA, a Games Tax Relief champion, responded by saying:

David Cameron’s negative response to Luciana Berger’s question is peculiar. The PM claimed that Games Tax Relief was ‘...not particular successful or targeted...’ Yet both the Conservative Party and the Liberal Democrats promised that they would introduce this tax break before the election.

Wilson added, “Unless the Coalition Government urgently reappraises its decision to cancel Games Tax Relief then the UK video games industry will suffer and it will not be able to deliver the jobs, exports and investment so desperately needed to rebalance our economy.”

Dundee West MSP Joe FitzPatrick expressed that he was “disappointed but not entirely surprised,” in regards to a lack of movement towards tax relief.


Comments

Re: Cameron: “Difficult Decision,” but UK Tax Breaks ...

Can they stop blaming Canada for their own inaction now?

Re: Cameron: “Difficult Decision,” but UK Tax Breaks ...

Scrap child benefit and cut housing benefit, use this money to fund the tax breaks for games developers. Simples.

Re: Cameron: “Difficult Decision,” but UK Tax Breaks ...

Might I suggest that they would have been more successful had they actually been put in place?

My answer to DC would be that, as an island which depends on imports, we should try and export something and since we can't undercut most countries on price, we should be aiming to promote skilled industries.

If you want proof that tax breaks work, then take a look at Eidos Montreal; a British publisher who opened a studio in Canada due to tax incentives. And now, because Eidos is owned by Square Enix, some of the revenue is going back to Japan. If we had tax breaks, the jobs and money might have stayed here.

The problem is, I doubt there are many conservative MPs who would want to say that GTA does more good than harm!

Re: Cameron: “Difficult Decision,” but UK Tax Breaks ...

Don't forget that Labour have Keith Vaz, who has spouted a lot of moral panic-inspired rubbish in the media about violent games, while the Tories have Ed Vaizey who is certainly on the industry's side and was trying to get the tax breaks put in before the PM and Osborne killed off the idea.

I suppose Cameron can argue that the deficit took over as his absolute priority when he came to power as, apparently, it was far worse than he imagined. However, I still don't understand it - essentially giving (or investing or however you see it) money in the form of tax breaks which then generates more money in the long term and secures jobs ISN'T deemed feasible.

Re: Cameron: “Difficult Decision,” but UK Tax Breaks ...

Absolutely, the lack of public funds is the primary reason for this decision. However, tax breaks aren't technically an investment of public money, they are a reduction in revenue. The industry isn't asking for investment per se, they are asking for lower costs (it's more expensive than most other countries to develop here)

Lost jobs and exports reduce public revenue as well. Industry growth creates more public revenue via income tax and VAT that consumers and employees pay.

I still maintain that the decision is political rather than fiscal, i.e. the government cannot be seen to be supporting something when they have bigger priorities and public funds are extremely tight.

Re: Cameron: “Difficult Decision,” but UK Tax Breaks ...

I've just heard that this tax break would cost in the region of £180m. The government did not want to appear to favour one industry over another especially as many would be receiving cuts.

 
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MechaCrashHey Neo, that bit with "he instigated it"? That is called victim blaming. Stop it.10/25/2014 - 11:05pm
KronoAnd a rebuttal to that article: https://medium.com/@cainejw/an-actual-statistical-analysis-of-gamergate-dfd809858f6810/25/2014 - 9:42pm
Technogeekhttp://www.newsweek.com/gamergate-about-media-ethics-or-harassing-women-harassment-data-show-27973610/25/2014 - 8:54pm
TechnogeekAnd speaking of harassment and Gamergate, Newsweek had a social media analytics company analyze the hashtag in the interest of finding out what the movement was really about. The results should surprise absolutely nobody at this point.10/25/2014 - 8:54pm
Neo_DrKefkaI was called a traitor for speaking out on harassment and I was put on a list for people on twitter to mass report me. Only GamerGate site that has come out of this that has been reputable would be TechRaptor. 2/210/25/2014 - 7:09pm
Neo_DrKefka@Neeneko The reason why I ended my support of #GamerGate was the fact KingofPol (The guy who was sent the knife) ended up saying crap about those with autism. At this point I confronted the community and some big wig writers on the #GamerGate side. 1/210/25/2014 - 7:08pm
NeenekoIt would also mean they have to confront that the sites already mostly cater to them and wiping that small percentage of otherness just does not justify new sites.10/25/2014 - 6:55pm
Neeneko@ quiknkold - problem is it has never been about freedom, it is about dominance, ownership, and priviliage. women and minorities should be the ones leaving and creating their own spaces, not them!10/25/2014 - 6:54pm
Neo_DrKefka@Mecha I hear you about KingofPol this is a guy who is using GamerGate to boost his career. Most of his streams are crap about him talking about him being drunk. What happened to him was wrong but it doesn't change the fact he has instigated much of this10/25/2014 - 5:40pm
Craig R.And I'll be perfectly happy in never seeing the phrase 'false flag' ever again, as it is one of the worst notions to ever come out of the camp of the tinfoil brigade that is already completely overused.10/25/2014 - 3:50pm
Craig R.Gone for a week and come back to find GG didn't go away at all. Dammit.10/25/2014 - 3:48pm
Matthew Wilsonif they were serious, they would go to youtube. most youtube game reviewers tend to revew games as product, and tend leave social issues out of it.10/25/2014 - 1:42pm
quiknkoldif the gamergaters were serious, they'd realize that Kotaku and Polygon arent the only games in town, and that with the freedom of the internet, they could create their own websites and achieve the goals they are trying to achieve without arguement.10/25/2014 - 1:35pm
james_fudgehe should have called the police.10/25/2014 - 1:20pm
TechnogeekAt least my statement still holds if it does turn out to be a false flag.10/25/2014 - 1:03pm
NeenekoThough I admit, since doxxing and false flag where heavily used tactics of the GG supporters, while they are not historical tactics used by detractors, I am skeptical how much it is really 'both sides' doing it in any real volume.10/25/2014 - 1:01pm
NeenekoOne thing that makes all of this messy is 'false flag' is a serious concern here. It does not help that the original GG instigators were also known for doing elaborate false flags to discredit feminism themselves.10/25/2014 - 12:59pm
MechaCrashThe guy who got the knife is the one who advocated doxxing, by the way, and was getting court documents about Zoe Quinn so he could publicly post them. It doesn't make what happened to him right, but he deserves no sympathy.10/25/2014 - 12:42pm
TechnogeekNo, that's a pretty shitty thing to do and I fully support the responsible parties getting a visit from the relevant legal authorities.10/25/2014 - 12:17pm
Neo_DrKefkaSomeone anyone tell me how two wrongs somehow make a right? This is becoming exhausting and both sides are out of there minds!10/25/2014 - 11:40am
 

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