Budget 2012: industry reaction
TIGA, the Work Foundation, the Employee Ownership association, and the CBI deliver their verdicts.
The big budget news for the technology sector was tax breaks for the video games industry. The government intends to introduce tax relief for the video games, animation and high end television industries from April 2013.
TIGA, which has campaigned for this tax relief, described the decision as a “decisive victory” for the UK video games industry, which would increase employment and innovation in the sector and would help to power the economic recovery.
TIGA CEO, Dr Richard Wilson, said:
This is a brilliant decision by the Government and terrific news for the UK video games industry. It is also a decisive victory won by TIGA through audacity, determination and endurance. Like a boxer knocked down by his opponent, we refused to accept defeat and kept getting back in the ring.
Our research shows that Games Tax Relief should generate and safeguard 4,661 direct and indirect jobs.
Ian Brinkley, director at The Work Foundation, said the Budget could have done more to help growth:
This was the Budget that could have done much more to set out a growth strategy. There were some welcome hints of what could have been – measures that support key industries such as life sciences and the digital sector, help create a modern infrastructure and boost to the science base.
But these tentative measures were over shadowed by more traditional cuts in corporation tax and more Enterprise Zones. Not surprising, this Budget does little to alter long-term prospects for the UK economy.
The Employee Ownership association responded positively to today’s Budget Statement. Spokeswoman Sam Dowling said:
We welcome the announcement that HMT will be looking at what more they can do to encourage employee ownership. To encourage growth in the UK, we need strong companies which can provide great products and services over the long term. Committed staff are essential for successful businesses, but too often employees are last in line when it comes to company ownership and sharing rewards.
John Cridland, CBI Director-General, said that despite delivering a confidence boost for businesses, the Chancellor could have done more in the area of deregulation:
Family budgets have been under great pressure, and by putting more money in the pockets of ordinary people, the Chancellor has provided a much-needed confidence boost.
With many calls on the Chancellor to spend money he didn’t have, the best news for businesses is that he stuck to his guns and delivered a fiscally neutral programme.
If businesses were looking for more, it was in the area of deregulation. For smaller businesses, things may not feel very different on the ground. It would have also have been a huge relief if the Chancellor had taken the opportunity to get rid of the currently unworkable Carbon Reduction Commitment.
Tags: Budget 2012
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