TIGA, the network for games developers and digital publishers and the trade association representing the video games industry welcomed the Government’s proposals to: extend tax relief to support self-employed people and employees when they fund their own training; introduce a new knowledge intensive intensive Enterprise Investment Scheme fund; and a consultation addressing the issue of late payment. TIGA was responding to the Chancellor of the Exchequer’s first Spring Statement to Parliament, where he provided forecasts for the economy and public finances.
Borrowing and Growth
The OBR’s new forecast for growth this year is 1.5 per cent, which is a slight improvement on its previous estimate.
The OBR predicts the UK economy will then grow 1.3 per cent in 2019, 1.3 per cent in 2020, 1.4 per cent in 2021 and 1.5 per cent in 2022. These forecasts are the same as those published in November up to 2020 but a touch lower in the final two years of the forecast horizon.
Public borrowing is forecast to fall from £45.2bn this year to £28.7bn in 2020-21 and £21.4bn by 2022-23.
The Government also announced consultations on the following topics:
Making sure multinational digital businesses pay a fair share of tax
The Government has set out its thinking on how the tax system can change to ensure that multinational digital businesses pay their fair share of tax.
Supporting people to get the skills they need
To support upskilling and retraining, the Government is seeking views on extending the current tax relief to support self-employed people and employees when they fund their own training.
VAT registration threshold
The VAT registration threshold—as set out at autumn Budget 2017, the Government are not minded to reduce the VAT threshold. This call for evidence will seek views on whether the design of the VAT threshold could better incentivise small business growth.
Knowledge intensive Enterprise Investment Scheme (EIS) fund
Knowledge intensive Enterprise Investment Scheme (EIS) fund—a consultation on the introduction of a new knowledge intensive EIS fund structure with additional incentives to attract investment.
Business Productivity
Improving business productivity—BEIS will publish a call for evidence to understand how best we can help the UK’s least productive businesses to learn from, and catch-up with, the most productive.
Late Payment
Delivering a fair payment culture for small businesses—BEIS will launch a call for evidence on how to eliminate unfair payment practices to small businesses.
TIGA’s Chief Executive Officer, Dr Richard Wilson OBE, said:
“We are pleased about the Government’s proposals to extend the current tax relief to support self-employed people and employees when they fund their own training. As an industry that is predominately made up of small and micro businesses, this is an important measure. Those working in the video games industry have to constantly upskill and learn how to utilise the latest technology.
“We also welcome proposals to make sure multinational digital businesses pay a fair share of taxation. It is important that all businesses compete on a fair and level playing field.
“The Government’s consultation on the introduction of a new knowledge intensive EIS fund structure with additional incentives to attract investment is additionally welcome. Access to finance is a crucial challenge for many businesses in our sector.
“TIGA welcomes the uplift in the OBR’s economic growth estimates and the improved situation in relation to day-to-day borrowing. However, we need to take further steps to improve productivity and economic growth, increase investment and enhance skills and training. We look forward to submitting proposals to the Government and policy makers prior to the Autumn Budget.”
About TIGA
TIGA is the network for games developers and digital publishers and the trade association representing the video games industry. Our core purpose is to strengthen the games development and digital publishing sector. We achieve this by campaigning for the industry in the corridors of power, championing the industry in the media and helping our members commercially.
TIGA is intent on building an enduring organisation which continually improves; a business that will make a significant impact on the games industry and so benefit our membership and the wider economy. Since 2010, TIGA has won 24 business awards, an achievement which reflects TIGA’s drive for improvement and to meet best practice.
For more information visit: www.tiga.org
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 at: richard.wilson@tiga.org