The 2012 Budget will deliver tax breaks for digital games industry – a fast growing sector in the city - from April next year.
The government confirmed in the Budget that corporation tax relief for the video games, animation and high-end television industries will be introduced in 2013 to make the UK “the technology centre of Europe.”
Commentators suggest that the tax relief for the video games sector should generate and/or safeguard over 4,600 jobs, lead to £188m in investment and contribute £283m to UK GDP generating £172m in taxes.
Tax incentives were promised in 2010, by the previous Labour government but were abandoned by the coalition government when they took office.
A spokesperson for Tiga - the video games industry trade body – said, "This is a brilliant decision by the government and terrific news for the UK video games industry."
The move will put the UK in a stronger position to compete with other countries offering incentives for video games production e.g. Canada and South Korea. The UK employs 9,000 people in the video games sector and it has become an increasingly important part of the digital media sector in Brighton & Hove.
It will also strengthen the city’s bid for high speed broadband under the £50m tranche of money for second tier cities also announced in the Budget.
Read related items on:
Communications, IT and new media