Vaizey Responds To Scrapped Tax Relief

Minister for culture, communications and creative industries, Ed Vaizey, has told IncGamers he’s “disappointed” the government was unable to secure tax breaks for videogames.The June budget was announced earlier today by George Osborne and, although pretty heavy across the board, it was a surprise to see the tax break relief promised by the Conservatives in the run up to the election had been scrapped.Vaizey told IncGamers despite the scrapping of the relief for now, “[the] Government remain absolutely committed to supporting the Video Games Industry (sic) which offers so much to this country, but because of the hugely difficult economic circumstances we inherited the plans for a tax break can no longer go ahead.”Earlier today TIGA CEO Richard Wilson outlined his anger saying the government had “betrayed” the industry and that TIGA wouldn’t surrender the cause.Vaizey said that he’s aware there will be disappointment with the announcement, but insisted there is still good news in the budget for the industry.”[M]ajor package of reforms to business taxation announced in the Budget is designed to make the UK the most competitive corporate tax regime in the G20 which will benefit the whole UK video games industry. I was also delighted to be able to protect the £3.5 million funding towards the two video games centres of excellence under development in Dundee and Salford, which will include a £2m fund for new games concepts, stimulating games development and helping the start ups and small young companies that are vital to economic growth.”What this does for already established business operating out of Dundee such as Realtime Worlds and Ruffian is unclear, and how it’s implemented is yet to be seen.”I will now work closely with business on a thorough examination of how else Government should best support the games industry. I will set out some ideas and proposals next month,” Vaizey told IncGamers.We’ll be catching up with Ed Vaizey soon, so make sure you check back.