UK Government Nervous about Tax Breaks

If we are to listen to the ELSPA (Entertainment and Leisure Software Publishers Association), there are two major problems when it comes to the UK's games industry: the rating system, which should be PEGI and the lack of government support, which encourages game developers to migrate to Canada or France, where they earn more money. In both cases, the government does not seem to be prepared for investments in the games industry, considering that they are already doing too much for it.

Culture minister Margaret Hodge has again confirmed that authorities are nervous about offering a tax break and would only consider something like that if the sector would be heading for a "genuine market failure". In other words, game developers will start to ignore the UK even more and head to cheaper markets; only then will the government have to do something about it. We'll just see whether it will be too late or not. And as long as the games industry will not be deeply affected (games will still be created, with or without UK's government support), everything is fine with us.

"I know this is hugely important to many of you. And you rightly make the comparison between the relief we give to film," Margaret Hodge said. "We're nervous about these forms of tax relief. Because it costs us money. And you don't want to get into an international Dutch auction. We're nervous because we need to think if it provides a sustainable way to provide continuity and growth for the industry," she added.

So, things are not looking too good for the United Kingdom's games industry, we might add, which is a pity. But there is nothing we can do but hope everything is going to be alright. It would probably be very hard for all the UK-based game companies to move to Canada or France.