Tax break decision threatens investment, warns Activision boss
Incentives
Tax break decision threatens investment, warns Activision boss
THE GOVERNMENT’S decision not to implement a promised tax break for games developers could seriously threaten future investment, warned Bobby Kotick, Chief Executive of Activision Blizzard.
“For us to continue to invest in the UK there needs to be an incentive provided for us to do so,” he said in an interview with the Financial Times.
“The talent pool in the UK is among the best in the world for what we do. But we really need to see some more incentives. We are seeing great incentives in Canada, Singapore and eastern bloc countries.”
Activision recently became a member of Tiga and joined in calls for the government to reconsider its decision.
Executives at Sony also told the FT that the lack of a promised tax relief could affect their plans in the country.
“The existing plans will continue but any further new developments would have to be looked at. Maybe something that was planned for the UK would go abroad now,” said Ray Maguire, Sony Computer Entertainment’s UK Managing Director.
Treasury officials and ministers have stated that the games tax break was unfortunately unfeasible and the decision to scrap it will save a reported £190 million over the next five years, though it was not explained how this figure was arrived at.
Brendan Caldwell
