Third successive quarter of weak economic growth shows the need to back sectors with growth potential

By July 26, 2011 Press Releases

Third successive quarter of weak economic growth shows the need to back sectors with growth potential

TIGA, the trade association representing the UK games industry, today urged the UK Coalition Government to drive the UK video games sector forward by introducing Games Tax Relief. TIGA made the comments following the news that the UK economy grew by a mere 0.2 per cent in the second quarter of 2011. The economy contracted by 0.5 per cent in the final quarter of 2010 and grew by 0.5 per cent in the first quarter of 2011. Government ministers are increasingly concerned about the state of the economy. Vince Cable, Secretary of State for Business, Innovation and Skills, admitted yesterday in the Financial Times that “Clearly we haven’t got a strong recovery – that’s abundantly clear.””

Dr Richard Wilson, CEO of TIGA, said:

“The UK economy has barely grown for the last nine months. Weak economic growth means that the Government will find it much harder to reduce the public sector deficit. With consumer spending under pressure from higher inflation and the VAT hike earlier this year, the UK urgently needs economic growth to come from business investment and exports.

“The UK video games sector is exactly the type of economic sector which can contribute towards UK economic growth. The global market for video games is expected to grow from $52.5 billion in 2009 to $86.8 billion by 2014.

“The video games sector has the potential to provide substantial employment. According to the Entertainment Software Association in the USA, the video games industry has created 120,000 jobs in more than 34 states in the USA. Over 20 states in the USA have tax breaks for games production or provide other forms of significant government financial support.

“UK games developers are high technology, highly skilled, low carbon businesses that have the potential to succeed in global markets. The introduction of Games Tax Relief will power investment and job creation and boost inward investment by global publishers into the UK games industry. TIGA will continue to improve its proposals for Games Tax Relief and other incentives in order to make the UK the best place in the world to do games business.””

Ends

Notes to editors:
About TIGA:

TIGA is the trade association representing the UK’s games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have games publishers, outsourcing companies, technology businesses and universities amongst our membership. TIGA was awarded ‘Trade Association of the Year’ and the ‘Member Recruitment Award’ at the Trade Association Forum Best Practice Awards 2010.

In 2011, TIGA won a further four awards at the Trade Association Forum Best Practice Awards, including ‘Trade Association of the Year’ for the second consecutive year. TIGA has also been named as a finalist in the 2010 Chartered Management Institute (CMI) National Management and Leadership Awards in the category of ‘The Outstanding Organisation of the Year Award (SME)’. TIGA is an ‘Investors in People’ accredited organisation.

TIGA’s vision is to make the UK the best place in the world to do games business. We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members. This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.

For further information, please contact Dr Richard Wilson, TIGA CEO on: 07875 939 643, or email richard.wilson@tiga.org.

PWC Global Entertainment and Media Outlook 2010 – 14 (PWC, 15th June 2010).
Essential Facts about the Computer and Video Game Industry (Entertainment Software Association, 2011).

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