TIGA, the trade association representing theUK games industry, said today that the decline in inward investment into the UK
confirmed the need for the Government to adopt a much more aggressive growth
policy. Figures revealed in a
parliamentary answer showed that in the financial year
2009/10 the UK attracted a total of 1,619 Foreign Direct Investment (FDI)
projects, down by 7 per cent on 2008/09.
The UK video
games industry is heavily
reliant on global publishers for inward investment. Last year 76 per cent of
all investment in the UK games industry was from global publishers. Investment by
UK video games studios fell by £41 million between 2008 and 2010.
Dr.
Richard Wilson, TIGA CEO, commented:
“If the UK economy is
to enjoy a strong recovery then we must continue to encourage FDI. The
Government must engineer a low tax environment to encourage inward investment
in the UK economy. As far as the video games industry is concerned, the Government
should look again at the case for a sector specific tax break for games production.
Three major global publishers – Activision Blizzard, THQ and Ubisoft – have each
stated that they would be more likely to invest in the UK video games sector if
we had a tax break for games production. TIGA will continue to refine the case
for Games Tax Relief and encourage the Government to think again about the
merits of this important measure.””
-Ends-
Notes
to Editor:
The inward investment figures were revealed
in a Parliamentary written answer:
Foreign Investment in UK
Nicholas Soames: To ask the Secretary of State for Business, Innovation and Skills what
progress the Government has made in securing greater inward investment to (a)
England and (b) the UK. [55132]
Mr Prisk [holding
answer 12 May 2011]: In the financial year 2009/10, the UK attracted a
total of 1,619 Foreign Direct Investment (FDI) projects, down by 7% on 2008/09.
Within this total, 1,409 projects were in England, down by 9% on 2008/09. This
performance is against the backdrop that global investment flows declined by
approximately 40% in 2009/10.
Within the overall total of 1,619 FDI projects into the UK in 2009/10, UK
Trade and Investment (UKTI) assisted a total of 759 projects, confirmed as locating
or expanding in the UK up by 26% on 2008/09.
Within the overall UK total of 759 UKTI assisted projects in 2009/10, 701
FDI projects were confirmed as locating or expanding in England also up by 26%
on 2008/09.
The Inward Investment results for the UK for the financial year 2010/11
will be announced on 12 July 2011.
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. 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
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 07875939643:
or email richard.wilson@tiga.org; or contact David Hodges on 02070911653