Report shows professional, scientific and technical sector has benefited from tax breaks, now the largest industry group in the UK
TIGA, the trade association representing the UK video game industry, has called for greater support for the UK’s regional businesses, following the Office of National Statistics report showing London based businesses grew by 3.5%, but a decreasing rate of business creation across the country as a whole.
Whilst the number of new businesses registered across the UK grew by 18,000, or 0.9 per cent, to 2.17m in the year to March 2013, this is a slower growth rate than the 1.8% increase (37,000 businesses) seen in 2011-12, which came after three years of continual decline. The UK total is now only slightly above 2008 levels.
TIGA reiterated its calls for the creation and promotion of clusters of high technology businesses, including games businesses, across the whole of the UK. Business clusters have demonstrated they increase the number and rate of start-ups and also help to build more sustainable businesses. This is because clusters of geographically concentrated firms from the same or similar sectors can collaborate and compete with one another, typically encouraging knowledge transfer, promoting business efficiencies and enhancing skills. A strategy to foster regional business clusters, particularly high technology clusters, could prove highly effective in driving a UK wide rather than just a London-centric economic recovery.
There are currently concentrations of games studios in areas including Birmingham, Brighton, Cambridge, Dundee, Edinburgh, Glasgow, Guildford, Leamington Spa, Leeds, Liverpool, London, Manchester, Newcastle, Oxford, and Sheffield. TIGA has also been hosting local networking and knowledge sharing events for these regional game development communities across the UK.
TIGA also highlighted the ONS data showing the UK’s professional, scientific and technical sector, which has been boosted by tax breaks to encourage research and development, has now become the largest industry group, with 16.9% of the total, overtaking the retail and wholesale sector. This is particularly relevant given the UK video game industry is awaiting the EU Commissions decision on Games Tax Relief, following TIGA’s five and half year-long campaign for the measure..
Dr Richard Wilson, TIGA CEO. said:
“It’s encouraging to see an upturn in London’s economic fortunes, but we really want to see the rest of the UK enjoy as much growth as possible too.
“Since the recession there has been a general recognition that the UK economy needs to be rebalanced, with growth coming from exports, business investment and more activity from the regions outside of London. With growth slowly returning now is an opportune time for policy makers to promote the development of high technology clusters as a proven and highly effective method of ensuring that economic growth benefits all parts of the UK.
“The UK can promote business clusters and boost start-ups through the provision of more business incubators, strengthening local industry and university links, building connections with finance providers and providing effective business mentoring. Adopting this approach could help to increase more start-ups and help to build more sustainable high technology and creative businesses, including games businesses. This is vital if we are to spread economic and employment opportunities beyond London.”
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About TIGA:
TIGA is the trade association representing the UK video game 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. Since 2010, TIGA has won 14 business awards and has been nominated a finalist for 16 other awards.
TIGA focuses 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
Richard Wilson, TIGA CEO on: 07875 939 643, or email: richard.wilson@tiga.org
Drew Field, TIGA Communications Director on: 07720 643 344, or email: drew.field@tiga.org