TIGA, the network for games developers and digital publishers, and the trade association representing the video games industry, has today submitted six proposals ahead of the Spring Budget.
TIGA recognises that the Government will want to address a range of important issues in the Budget, including measures to address the cost of living crisis. Yet it remains crucial for the Government to enhance the ability of businesses, including those in the video games industry, to generate the wealth upon which the UK’s public services depend.
TIGA has proposed the Government take six policies forward:
- An increase in the rate of Video Games Tax Relief (VGTR), either by increasing the rate from 25 per cent of 80 per cent of core expenditure to 32 per cent of 80 per cent of core expenditure; or by increasing the rate of qualifying expenditure from 80 per cent to 100 per cent and keeping the rate of relief at 25 per cent.
- The establishment of a Video Games Investment Fund (VGIF) to provide pound-for-pound match funding of between £75,000 and £500,000 to games developers throughout the UK.
- The establishment of an Industrial Secondments Programme (ISP) to enhance skills development in video games and so support students, lecturers and industry.
- The reinstatement of the Skills Investment Fund (SIF) to provide matched funding for games industry skill development.
- The funding for BTECs to be retained and enhanced to bolster the supply of talent to work in the UK’s high skills video games sector.
- The UK Games Fund should continue to receive support from the UK Government. The Fund offers grants of up to £25,000 to businesses looking to build game prototypes.
Dr Richard Wilson OBE, TIGA CEO, said:
“The UK’s game development sector generates annual tax revenues of £1,2 billion for the Treasury and contributes £2.9 billion to UK GDP annually. The Government can encourage further growth in the sector – if it takes six TIGA policies forward in the 2023 Spring Budget.
“Enhancing VGTR will drive investment and employment in the sector. Introducing a VGIF and maintaining the UK Games Fund will improve studios’ access to finance and ability to expand. Introducing an Industrial Secondments Programme and a Skills Investment Fund will promote workforce development. Continuing to fund BTECs will promote the supply of talent available to work in the sector.
“If the Government takes these six policies forward then it can help drive employment growth in our highly-skilled, regionally based, export-oriented sector.”