Strengthening the UK Games Industry: TIGA’s Proposals for the 2014 Pre-Budget Report

TIGA, the network for developers and digital publishers, said today that its agenda for the 2014 Autumn Statement would strengthen firms, industry and the UK economy. TIGA made the comments to coincide with the publication of its submission for the 2014 Autumn Statement. The Rt Hon George Osborne MP, Chancellor of the Exchequer, will make his Autumn Statement on December 3rd 2014. TIGA’s submission makes five key proposals:

1. A Prototype Fund should be made available to enable start-up studios to access finance and develop playable prototypes.
2. A Creative Content Fund (CCF) should be established in order to encourage new studio formation, stimulate creativity, new content development and IP generation. The CCF could make loans available to games businesses on a pound for pound, matched funding basis. Both the Prototype Fund and the CCF could be financed via the National Lottery.
3. An Export Tax Relief should be introduced to incentivise more small firms to export, thereby promoting export-led economic growth. The Export Tax Relief should be based on the existing Patent Box scheme and would entail a competitive tax rate (e.g. 15 or 10 per cent) on the profits generated from exports.
4. Regional/National Games Development Incubators should be established at a university or at a consortium of universities in each of the English regions and in each of the nations within the UK to enable more successful start-ups.
5. A pilot Training Tax Relief (TTR) should be introduced for small and medium-sized enterprises (SMEs). TTR would operate in a similar way to the existing R&D tax credits and would enable SMEs to offset expenditure on training, Continuous Professional Development (CPD) for staff and education outreach activities against corporation tax.

TIGA envisages that both the Export Tax Relief and the SME Training Tax Relief would be cross sectoral in application in order to give the maximum boost to the UK economy.

Dr Richard Wilson, TIGA CEO, said:

“TIGA’s proposals will build up the strength, stamina, and sustainability of games businesses. Our programme also supports other sectors by incentivising training, enhancing higher education and stimulating exports. TIGA’s policy agenda will strengthen firms, industries and the UK economy.”