Games relief probe by EU ‘well advanced’

THE EUROPEAN Commission last night said its investigation into proposed UK tax reliefs for the video games sector was “well-advanced”, but was unable to predict the timing of any forthcoming ruling.

Spokesman Antoine Colombani told The Courier that UK authorities had “provided the necessary information” for its probe into state aid considerations, but he could not anticipate the likely timing of any decision.

Chancellor George Osborne announced the relief in his 2012 budget, but the introduction of the measure has been held up by European scrutiny.

Quizzed by Dundee West MP Jim McGovern in the House of Commons this week, Prime Minister David Cameron said he hoped to have good news “shortly”.

But pressure on both the EC and HM Treasury has been mounting following an open letter published by trade body TIGA. It follows news that games firm Activision is to engage in a consultation exercise with 46 members of staff at The Blast Furnace over the future of the Leeds studio.

In the letter chief executive Richard Wilson told Chancellor George Osborne he had “concern” about the “slow progress being made towards the implementation of Games Tax Relief in the UK”.

“The decision by the EU Commission in April 2013 to launch a formal investigation into the case for Games Tax Relief has prevented the UK video game industry and the UK economy from benefiting from this vital tax relief,” he wrote.

“TIGA has provided important data and information both to the UK Government (HM Treasury) and directly to the EU Commission, justifying the case for Games Tax Relief.

“TIGA’s evidence shows that the UK’s Games Tax Relief supports cultural products, is necessary and proportionate in design, and it achieves these results without distorting trade and competition within the EU.”

But Dr Wilson warned that the ongoing delay was jeopardising the potential benefits, and called on the UK Government to clarify what action it was taking on the issue.

A spokeswoman for HM Treasury said it was not usual for cutting-edge state aid measures to be subject to close scrutiny and stressed that the UK had a long history of success in implementing innovative measures.

“We remain committed to introducing video games tax relief as soon as possible and are working with the industry to provide the European Commission with the evidence it needs to conclude its investigation quickly,” she said.

The proposed relief is based on successful tax allowances applied to

Games Tax Relief should have been introduced in the UK in April last year, but has been delayed by the European Commission.