TIGA, the trade association representing the UK games industry, today urged the UK Coalition Government to power the Scottish video games industry forward by looking again at Games Tax Relief and implementing it. TIGA made the comments following the latest economic analysis from Strathclyde University’s Fraser of Allander Institute which reported that three years after the start of the recession, the Scottish economy has merely recovered a quarter of the output lost.
The UK economy has recovered a third. Exports and business investment are either slow or stagnant. The Institute has downgraded its forecasts for growth this year from 1 to 0.8 per cent and for next year by 0.1 per cent to 1.5 per cent.
Dr Richard Wilson, CEO of TIGA, said:
“The latest analysis from Strathclyde University’s Fraser of Allander Institute confirms that the Scottish economy needs to be rebalanced towards business investment and exports. The Scottish video games sector is exactly the type of economic sector which can contribute towards this economic rebalancing. The games industry is R&D intensive, with Scottish developers spending on average 15 per cent of turnover on R&D.
The industry provides high skilled employment, with almost 80 per cent of the typical development studio qualified to degree level. The sector is also export focused. On average, Scottish developers generate 49 per cent of their turnover through exports.
“If the Scottish video games industry is going to contribute significantly to the Scottish economic recovery then the UK Coalition Government should look again at Games Tax Relief and implement it. The Scottish Government rightly supports Games Tax Relief and earlier this year the House of Commons Scottish Affairs Select Committee recommended that the UK Coalition Government should review the case for Games Tax Relief. TIGA will continue to refine its proposals for Games Tax Relief and other incentives to enable the Scottish video games industry in particular, and the UK industry generally, to fulfil their potential.””
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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. 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.