New research shows GTR boost for UK videogame industry will be twice that of previous estimates due to sector’s recovery in 2012-13
TIGA, the network for game developers and digital publishers, today released new findings from its annual report into the state of the UK videogame industry Making Games in the UK Today: June 2014 which shows the impact of Games Tax Relief (GTR) on the sector will be even greater than previously forecast.
This is due to the industry returning to growth in 2013, with studio headcounts, wider games industry employment, tax revenues and investment all on the up, as revealed by TIGA last week. The findings show that whilst GTR protects existing jobs and investment, and thus prevents a return to decline, a larger, healthier industry also means an increase in the impact and return on investment from Games Tax Relief, as demonstrated by the figures below.
TIGA’s previous estimates predicted that over five years GTR would:
- create and protect 4,661 direct and indirect jobs;
- encourage approximately £188 million additional investment expenditure by UK studios; and
- generate £172 million in new and protected tax receipts to HM Treasury at a cost of just £96 million.
Now, TIGA’s new research indicates that over five years GTR will:
- create and protect 10,300 direct and indirect jobs;
- create and protect approximately £450 million investment expenditure by UK studios;
- generate £490 million in new and protected tax receipts to HM treasury at a cost of £129 million to HMRC.
When comparing the previous and current research this means GTR will now:
- create and protect over 5,639 (220%) more jobs than expected;
- increase and protect £262 million (239%) more investment than previously anticipated; and
- create and safeguard £318 million (285%) more tax revenue than expected, thus generating a 3.8 to 1 return on investment.
TIGA is delivering a free GTR Tour around the UK to help developers and digital publishers learn about how to claim the Tax Relief and understand how it can be used to unleash the creative and financial potential of their games business.
Upcoming venues and dates include:
- Nottingham, June 18th,
- Bath, June 20th
- Manchester, June 24th
- Cardiff, June 26th
- Bournemouth, June 27th
- Cambridge, June 30th
- Leamington Spa, July 1st
- Liverpool, July 2nd
- Edinburgh, July 21st
- Newcastle, July 22nd
Additionally, TIGA has published an updated guide to GTR in partnership with Grant Thornton, which is free to download and can be accessed here. Also available is a video of TIGA’s London GTR Q&A session, which can be seen here.
Dr Richard Wilson, CEO, TIGA, comments:
“GTR will make an even bigger bang than expected. TIGA’s new research shows that GTR will be good for jobs, good for investment and good for the UK economy. With the sector returning to growth, GTR’s impact on employment, investment and contribution to GDP will be enhanced.
“TIGA wants as many games developers and digital publishers as possible to benefit from GTR. So today we are publishing a new guide with Grant Thornton that explains how studios can benefit from the Relief. We are also publishing a video of a recent TIGA ‘GTR Q&A Session’ which explains how games businesses can make the most of the advantages offered by GTR. We look forward to seeing studios benefit from GTR and develop more culturally British and successful games.”
Jason Kingsley OBE, TIGA Chairman and CEO & Creative Director, Rebellion, added:
“These revised figures are welcome and important news for the UK games industry. Games Tax Relief is now set to lead to an upsurge in investment in the games industry, resulting in more jobs and more culturally British games being developed.
“This is great news for the UK games industry and for the wider economy. Now it is up to developers and digital publishers to demonstrate what these figures look like in action in the form of new games and new jobs and to drive our high technology and creative industry to new heights of achievement.”
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Notes to editors
Research methodology
Games Investor Consulting conducted four censuses concluding in July 2008, September 2010, November 2011 and December 2013 of all known British games companies (including developers, publishers, publisher studios, service companies and broadcasters with games divisions) by telephone and email, asking as many as possible extant studios for their development headcounts (excluding HR, admin, sales, marketing and commercial staff), growth expectations and freelancer count / usage.
Games Investor Consulting conducted a similar census concluding in December 2012 in conjunction with TIGA and Sustainability Unit, an independent survey company. Distribution, manufacturing, peripheral device, marketing and retail outlet companies were not profiled.
GIC takes the latest data on development headcount to scale total development expenditure, and then uses Oxford Economics’ calculations to establish estimates of the development industry’s GDP and tax impact.
In previous years, GIC has used its own estimates of the cost of GTR, but this year GIC has taken HMRC’s own cost estimates for the GTR.
About TIGA
TIGA is the trade association representing the UK video game industry. We help developers and digital publishers build successful studios, network with the right people, save money and access professional business advice. We also have traditional publishers, outsourcing companies, technology businesses and universities amongst our membership.
TIGA is 90% funded by independent UK businesses. 80% of our board members are developers and/or from UK owned businesses, and 50% of our board are UK business owners themselves. Since 2010, TIGA has won 17 business awards. TIGA focuses on three sets of activities:
- Political representation
- Media representation
- Business services
This enhances the competitiveness of our members by providing benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities. It also means our members’ voices are heard in the corridors of power and positively represented in national, broadcast and UK video game trade media.
Get in touch:
Tel: 0845 468 2330
Email: info@tiga.org
Web: www.tiga.org
Twitter: www.twitter.com/tigamovement
Facebook: www.facebook.com/TIGAMovement
LinkedIn: http://www.linkedin.com/company/tiga
For further information, you can also contact:
Dr Richard Wilson, TIGA CEO on: 07875 939 643, or email: richard.wilson@tiga.org
Drew Field, TIGA Communications Director on: 07720 643 344, or email drew.field@tiga.org