Keep tax breaks or ‘lose talent’

RUTH Davidson, the main contender to lead the Scottish Conservatives, has warned her fellow UK Tory ministers they must “think again” about tax rates on Scotland’s computer games industry.

The 32-year-old MSP, one of four candidates running for the top post, said Chancellor George Osborne should scrap his plans to halt a 20% tax break for the sector.

She warned that the burgeoning industry faced losing talent to other countries such as Canada and France where governments were offering specific tax relief in the hope of luring people there.

Davidson’s public demand to Osborne will be seen as evidence she wants to show an independent front to party members. It comes after she told members two weeks ago that if she wins the contest, she will tell David Cameron he needs to visit Scotland more in the run-up to the independence referendum.

She has faced private claims from her opponents’ campaigns that she is the favoured candidate in London.

Davidson said last night: “I want our young people to be inspired to learn and gain qualifications because they see a real opportunity to have a career doing something they love, not to feel that there is no hope of getting on in the industry without moving to another country. That is why I am asking the government to think again and to invest in the future of this important and creative industry.”

She added: “Games development is also an incredibly mobile industry and if we can’t compete with countries such as Canada and France who aggressively court gaming firms with tax incentives then we will find our talent going abroad to be where the work is.”

KPMG Scotland estimates that a 20% tax break could create 3,000 jobs and encourage £457 million of investment.

Last week, ballot papers went out to 8,500 Tory party members on the leadership contest, with Davidson joined by Murdo Fraser, Jackson Carlaw and Margaret Mitchell. The result will be announced on 4 November.

Davidson is backed as a likely winner in the contest after Fraser began his campaign by announcing he wanted to end the Scottish Conservative and Unionist party and create a new one in its place.