Introduction
1. Following the announcement by the Chancellor of
the Exchequer, Rt Hon George Osborne MP, in his 22 June 2010 Budget,
not to proceed with a proposed tax relief for the video games
industry,[1] we decided
to undertake an inquiry into the impact of this decision on the
video games industry in Scotland and to examine alternative financial
incentives for the industry. Our inquiry, announced on 21 July
2010, focussed on:
- the contribution made by the
Scottish video games industry to both the Scottish and UK economy;
- what consultations were held by the UK Government
with the industry before the decision was made to abolish a games
tax relief;
- the level of tax breaks or incentives offered
in competitor countries;
- what potential impact the decision to abolish
games tax relief will have on the video games industry in Scotland,
and;
- alternative financial incentives for the industry.
2. As part of our inquiry, we travelled to Dundee
where we visited the University of Abertay and two video games
studios, as well as holding a roundtable discussion with representatives
from the industry. We received a number of written submissions
and took oral evidence from representatives of trade associations;
the University of Abertay; HM Treasury; and Ed Vaizey MP, the
Minister for Culture, Communications and the Creative Industries.
We are grateful to all those who submitted evidence and aided
us in our inquiry.
1 HM Treasury, Budget 2010, 22 June 2010, HC
61, Table 2.1 Budget policy decisions Back
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