New Data Supports The Case For Games Tax Relief

By October 27, 2009 Press Releases

TIGA warned today that unless the UK Government introduced a Games Tax Relief the video games development sector would decline by 5% each year over each of the next five years. Conversely, if a Games Tax Relief were to be introduced, then the industry would eventually enjoy annual growth of 4%. TIGA published the figures at the beginning of London Games Festival Week to demonstrate what is at stake for the UK games industry.

Gareth Edmondson, Vice-Chairman of TIGA, Managing Director of Ubisoft Reflections, and speaker at the ‘Best of British’ event on October 28th said:

“The UK games industry is still successful and world leading. However, because most of our key competitors benefit from a tax break for games production, our industry is at a competitive disadvantage. Unless the UK Government introduces TIGA’s proposed Games Tax Relief, our research suggests that employment in the development sector will fall by 5% in each of the next five years, from 9,025 in 2009 to 7,351 in 2014. There would also be a fall of £1.9 million in development expenditure over the same period.

“In contrast, with Games Tax Relief enacted, the industry would stop shrinking in 2010, grow by 2% in 2011 and by 4% in each of the next three years. 3,550 graduate level jobs and £457 million of investments in the development sector would be created or protected with the advent of the tax break. Games Tax Relief would more than pay for itself. Over five years the tax measure would cost £192 million but would deliver £415 million in tax receipts.

“The UK Government has a clear choice: invest in an inherently successful industry to perpetuate our leading position in the world, or preside over the decline of a key knowledge industry.””

Gareth Edmondson will be speaking on behalf of TIGA at GameHorizon’s ‘Best of British’ event on October 28, 2009, as part of this week’s London Games Festival. For more information on this event click here.

Ends

Notes to editors:

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 outsourcing companies, technology businesses and universities amongst our membership.
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: 0845 0941095; Mob: 07875 939643; or Email: richard.wilson@tiga.org, or, Eva Whitlow, Tiga PR Manager on: 07814 039 983, or email eva@tiga.org.

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