UKIE greatly disappointed by coalition backtrack on tax breaks for videogames industry

London, United Kingdom, 2nd June 2010 – Despite making a pre-election commitment towards tax breaks for the video games industry the Chancellor today announced that they are ‘poorly targeted’ and will be scrapped.

In response, Director General of UKIE, Michael Rawlinson said:

“Bearing in mind the pre election commitment towards tax breaks made by the Conservatives and the Liberal Democrats we are extremely disappointed by the outcome of today’s Budget. Our industry will be rightly puzzled as to how tax breaks can be lauded before an election, only to be seen as ‘poorly targeted’ and scrapped just 6 weeks later.

We understand that this decision has been made in the context of the current economic climate. Yet the Chancellor today spoke of the need for a more balanced economy. If this is to be attained the government must acknowledge that the creative industries are of vital importance. Therefore in the absence of tax breaks it is the essential that the government work with our industry to ensure that the policies which we have outlined - such as addressing the skills gap and better access to R&D initiatives - are implemented.”

Contacts:

For all press enquiries, please contact the UKIE press office on T: +44 (0)20 7300 6143 or E: press@ukie.info

About UKIE

The Association for UK Interactive Entertainment represents all the major publishers of games in the UK. Founded in 1989 to establish a specific and collective identity for the country’s interactive leisure software industry, membership includes companies publishing and distributing leisure software in the UK. As a gateway to Europe, UKIE works to protect, promote and provide for the interests of all its members as well as addressing issues that affect the industry as a whole such as age ratings, child safety and IP protection.

UKIE works with members and media to illustrate the beneficial contributions that the UK videogames industry makes to the British economy as well as its influence in other industries. In addition UKIE works with GfK Chart-Track to compile weekly, monthly and annual charts and sales reports for the UK market.