Jeremy Holt, Founder, Swindon Museum of Computing & Justin Tomlinson MP
TIGA, the trade association representing the UK games industry, today called on the Government to recognise the importance of the highly skilled, high tech South West games industry in its future growth strategy in the forthcoming Budget. TIGA made the call in its Budget submission ‘Budget for Growth: Powering the Video Games Sector to Support the Economic Recovery’.
The UK games industry is a vital sector within the creative industries. The games development sector contributes approximately £1 billion to UK Gross Domestic Product (GDP) and employs 9,000 development staff. 85 per cent of the development workforce is employed outside of London, typically in small and medium-sized enterprises. There is much potential for the South West to secure a share of this growing market.
TIGA’s submission includes detailed proposals for the introduction of Games Tax Relief, changes to the R&D tax credits system, changes to prototype funding, and changes to Venture Capital Trusts and the Enterprise Investment Scheme.
Justin Tomlinson, the MP for North Swindon and All Party Parliamentary Computer and Video Games Member, commented:
"There is huge potential in this growing sector, which with the right support could help attract further investment, especially for small, medium or even start-up businesses. This is essential as we seek to rebalance the economy, helping to not only protect, but create new jobs, generating tax revenue."
Dr. Richard Wilson, TIGA CEO, commented:
“It is essential that Games Tax Relief is included in the forthcoming Budget. The games sector is highly skilled, high tech and export orientated. This is precisely the sort of industry the Chancellor needs to support if he is to produce a successful transition from economic uncertainty to economic prosperity.
“In total, over 5 years, Games Tax Relief would create or safeguard 9,519 direct and indirect jobs (including 3,366 jobs in the games industry), £431 million investment in development expenditure and £394 million in tax receipts to HM Treasury. But it would cost just £194 million in tax relief to HM Treasury. In other words, Games Tax Relief more than pays for itself. We call on the Chancellor to support the games sector and introduce Games Tax Relief in the Budget.”
“The Government should also enhance the existing R&D tax credits. TIGA’s recommendations include the proposal that the scope of the R&D tax credits should be widened to enable businesses to claim for the costs of premises, design and IP protection. Additionally, the level of qualifying relief should be raised from 175 per cent to 200 per cent: this would ensure that for every pound that a business spends of qualifying expenditure it would get two pounds of tax deduction which it would use to reduce its corporation tax. These reforms to the R&D tax credits would thus enable games studios to employ more people, carry out more R&D and develop more IP.”
Jason Kingsley, TIGA Chairman and CEO and Creative Director of Rebellion, said:
“This submission provides the Chancellor with a number of opportunities to support the UK games industry. Games Tax Relief is the most attractive option in terms of providing future growth for our industry. Furthermore, this report suggests sensible changes to the R&D tax credits system which will enable developers to invest in more R&D in the UK. The Government has a wonderful opportunity at this Budget to support the games industry, it is imperative they take it.”