TIGA Calls for the Introduction of a Games Investment Fund to Drive the Scottish and UK Industries Forward

TIGA, the network for games developers and digital publishers, and the trade association representing the video games industry, called today for the introduction of a Games Investment Fund to improve studios’ access to finance, encourage the development of original IP and to enhance studio growth. TIGA’s proposal for a Games Investment Fund would entail grants or loans being made available to games businesses on a pound for pound, matched funding basis, up to a maximum of £200,000. TIGA made the comments in advance of the Government’s Autumn Statement on November 23^rd 2016 and in the TIGA –  ITN Productions programme, Changing the Game: https://tiga.org/news/presenting-tiga-and-itn-productions-changing-the-game

Chris Law MP, a leading Parliamentarian and Co-Chair of the All Party Parliamentary Group for Video Games in the Westminster Parliament, commented on TIGA’s proposals:

“The Dundee-based UK Games Fund has demonstrated the potential for public support through funding nearly 50 companies the length and breadth of the UK over the past year, many of which have already secured significant further private investment as a result of the grant support. Establishing TIGA’s proposed Games Investment Fund would build on the success of the UK Games Fund and will help grow this industry in the all of the UK’s creative hotspots, including the Dundee and wider Scottish games development clusters.”

 

Dr Richard Wilson, TIGA CEO, said:

 

“If the Scottish video games industry is to fulfil its potential then we need to provide more games studios with better access to capital and business advice. To achieve these goals, TIGA believes that the UK Government should establish a Games Investment Fund. This Fund could make grants or loans available to games businesses on a matched funding basis. The Games Investment Fund would also provide a commercial mentoring business advisory service, staffed by industry veterans, for games companies that access its grants or loans.

“An analogous scheme in Finland operated by the agency Tekes has been very successful. The scheme has provided financial support to over one fifth of the entire Finnish industry’s studio population. The scheme has also been good for the Finnish taxpayer and Government:

for every euro invested in the games industry by Tekes, a return ranging from nine to 26 euros has been generated.”

 

TIGA’s research shows that:

• Scotland has the third largest games cluster in the UK, after the South East of England and London.
• Scotland has 1,290 permanent and full-time equivalent creative staff working on games development[1] in 85 companies (up from 1,050 staff in 97 companies in 2014). Scotland is home to 9.4 per cent of the UK’s total games companies and 9.8 per cent of its developer headcount.
• Scotland’s games development sector supports an additional 2,408 indirect jobs.
• Annually, Scottish games development companies are estimated to invest nearly £62 million in salaries and overheads, contribute £56 million in direct and indirect tax revenues to HM Treasury, and make a direct and indirect contribution of nearly £138 million to the UK’s Gross Domestic Product (GDP).

 

TIGA, in advance of the Government’s Autumn Statement, has made eight proposals to drive the UK video games industry forward:

1. A Games Investment Fund (CCF) should be established in order to improve studios’ access to finance, stimulate new content development and IP generation. The Games Investment Fund could make grants or loans available to games businesses on a pound for pound, matched funding basis. The Games Investment Fund could be financed via the National Lottery or via Grant-in-Aid money from the Government.

 

2. The Government should retain Video Games Tax Relief and consider increasing the rate of the Relief.

 

3. The Government should consider increasing the rates of Research and Development Tax Relief.

 

4. The Government should maintain the UK Games Fund which provides valuable prototype funding for small games businesses.

 

5. The amount of money that a company can raise via SEIS investment should be increased from £150,000 to £200,000 per annum to reflect the rise in development budgets required to make internationally competitive games.

 

6. Specialist roles should be added to the Shortage Occupation List (including, but not limited to,

Game Analyst, Senior Game Artist, Senior Game Designer, Senior Producer, and Engine Programmer). This will enable games businesses to address skill shortages in highly specialised roles.

 

7. The Government should extend the Skills Investment Fund to promote skills development in the video games industry.

 

8. The Government should consider allowing the proceeds of the Training Levy to be available to fund a variety of good quality courses as well as apprenticeships.

 

The Rt Hon, Philip Hammond MP, Chancellor of the Exchequer, will present the Autumn Statement on November 23^rd 2016.

– ends –

About TIGA

 

TIGA is the network for games developers and digital publishers and the trade association representing the video games industry. Our core purpose is to strengthen the games development and digital publishing sector. We achieve this by campaigning for the industry in the corridors of power, championing the industry in the media and helping our members commercially.

 

TIGA is intent on building an enduring organisation which continually improves; a business that will make a significant impact on the games industry and so benefit our membership and the wider economy. Since 2010, TIGA has won 24 business awards, an achievement which reflects TIGA’s drive for improvement and to meet best practice.

 

For more information visit: www.tiga.org

Get in touch:

Tel: 0845 468 2330
Email: info@tiga.org
Web: www.tiga.org
Twitter: www.twitter.com/tigamovement
Facebook: www.facebook.com/TIGAMovement
LinkedIn: http://www.linkedin.com/company/tiga

For further information, you can also contact:

Dr Richard Wilson, TIGA CEO at: richard.wilson@tiga.org