MPs call for increased government support in video game industry

Britain's video game industry needs greater government support if it is to increase the number of jobs on offer over the coming years, according to two cross-party MPs.

Labour's Tom Watson and the Conservative Party's John Whittingdale say such backing is vital for what they call "a highly-skilled, export-orientated, low carbon industry".

In a Commons early day motion tabled in response to the last Budget, the MPs call for an extension of Research and Development tax credits which rose by 200 per cent in April.

The politicians feel the tax credits should also include the cost of premises as well as applications for the protection of intellectual property and design.

Industry body TIGA, which spent a year arguing the case for a rise in R&D tax credits with MPs, HM Treasury and the Government, has welcomed the motion.

"The Government was right to raise the level of qualifying relief in respect of the R&D Tax Credit in the March Budget," says TIGA CEO Dr Richard Wilson. "Yet the Government should go further. It should now extend the scope of R&D tax credits to include costs incurred in development including premises costs and the cost of applying for intellectual property protection and design."

Whittingdale, who chairs the Commons culture, media and sport select committee, is a keen supporter of the video game sector and he has backed tax relief for the industry.

Watson has often expressed anger at the way gaming is treated by some media and he set up a group called Gamers' Voice in 2009 to allow players to hit back.

Britain has a strong reputation within the video game sector, having produced blockbuster titles such as Grand Theft Auto and Tomb Raider. The industry contributes £1bn annually to UK GDP.