September 25, 2009
TIGA, the trade association representing the UK games industry, said today that just as the film tax credit had been successful in promoting a sustainable British film industry, so a Games Tax Relief would provide a powerful boost to the UK video games industry. TIGA made the comments in response to new figures showing that in 2008-09, over 100 million of support has been provided for the production of 170 UK films.
Richard Wilson, CEO of TIGA, said:
If it is right to provide tax relief for the UK film industry then it is right to invest in the UK video games development sector. The video games industry is an export oriented, highly innovative, knowledge based sector and is set to become the Hollywood of the 21st Century. With the right Government support, the UK video games industry can be a world leader.
TIGAs proposed Games Tax Relief, modelled on the UKs film tax relief, would stimulate growth in employment, new game development, innovation, investment, and encourage more British studios to sell directly to consumers. The Games Tax Relief is expected over 5 years to create 1,400 new jobs in the studio sector, increasing investment by games studios by 146 million, direct and indirect annual tax revenues by 13 million and GDP contribution by 323 million. By year 5, for every 100 of investment by government in the Games Tax Relief, the industry will invest 176. Just as film tax relief has been positive for the UK, so TIGAs Games Tax Relief is an investment that would be repaid many times over if enacted.
With financial services and traditional manufacturing in difficulty, now is the time for the Government to invest in the creative industries with potential for growth in the future. TIGA looks forward to hearing the Governments response to our proposal for Games Tax Relief.