TIGA, the trade association representing the UK games industry, said today that the Government should end the post code lottery in support for the video games sector and deliver more support to games businesses through the introduction of a national Games Tax Relief. TIGA made the comments after new information about the nine English Regional Development Agencies’ (RDA) funding for the video games industry was revealed by the Government in response to a parliamentary question tabled by the Conservative MP Philip Davies.
Richard Wilson, CEO of TIGA, said:
“Funding for the English video games industry is incredible, incoherent and insufficient. Incredible, because under the current arrangements important clusters of video games developers, for example, in Guildford and Brighton, receive virtually zero support. This is not the fault of SEEDA, which through the South East Media Network (SEMN) works effectively with TIGA. SEEDA and the SEMN are relatively underfunded.
“Incoherent, because the current post code lottery for funding the video games sector in England fails to ensure that all regions with potential are adequately supported. For instance, while games businesses in Yorkshire are admirably supported by Yorkshire Forward through Game Republic and those in East Anglia by the EEDA through Games Eden, those in Oxfordshire receive no meaningful RDA support.
“Insufficient, because while many other countries provide generous tax relief for games production there is no similar tax benefit for game developers in England.””
Richard Wilson concluded:
“We need a more rational system of support for the video games industry in England. In particular, all clusters should be able to access programmes that focus on business-to-business knowledge sharing and strengthening links with local universities.
“More funding should be made accessible through national programmes that developers, irrespective of their geographical location, can benefit from. That is one of the reasons why TIGA is advancing the case for a Games Tax Relief. This tax measure – which would benefit games developers throughout the UK – could help 60-80 titles per year, trigger growth in employment, new game development, innovation and investment, and more sustainable business models for British studios by selling directly to consumers. The Games Tax Relief is expected over 5 years to create 1,400 new jobs in the studio sector, increasing investment by games studios by £146m, direct and indirect annual tax revenues by £133m and GDP contribution by £323m. By year 5, for every £100 of investment by government in the Games Tax Relief, the industry will invest £176.””
Ends
About TIGA
TIGA is the trade association representing the UK games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have outsourcing companies, technology businesses and universities amongst our membership.
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. www.tiga.org
For further information about Tiga, please contact: Eva Field, Tiga PR Manager on: 07814 039 983, email eva@tiga.org
About RDA funding for the video games sector
The wide variations in RDA funding for the video games industry was revealed by the Government in response to a parliamentary question tabled by the Conservative MP, Philip Davies.
Philip Davies: To ask the Minister of State, Department for Business, Innovation and Skills (1) How much financial support was given by regional development agencies to the video games industry in 2007-08; [270805](2) How much funding was provided by regional development agencies to the video games industry in 2007-08. [276658]
Mr. McFadden: The following table shows RDA funding to the video games industry in 2007-08.
RDA
RDA funding to the video games sector in 2007-08 (£000)
AWM
(1)0
EEDA
62
EMDA
164
LDA
121
NWDA
166
ONE
471
SEEDA
(2)0
SWERDA
(2)0
YF
99
(1) AWM does not directly support the ‘video games’ industry but has provided £800,000 in support to the development of the ‘Serious Games’ sector in the region. ‘Serious Games’ is the use of games technology for serious commercial purposes, allowing users to learn a new skill, rehearse a potentially dangerous/costly procedure, or explore a new process or design.
(2) SEEDA and SWERDA have no programmes that specifically fund the video games sector. To identify the funding that has been provided from broader programmes would incur disproportionate cost.
Regional Development Agencies: Finance
Some RDAs are comparatively underfunded. See below a Written Answer from the House of Commons from the 30th October 2007 setting out the Regional Development Agencies’ allocated budgets for 2007-08. The table also sets out indicative budgets up to 2010/2011. However the Department for Business, Innovation and Skills has since released the allocated budgets for 2008/09 and 2009/10 and has released revised indicative budgets for 2010/11.
Mr. Hoban: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what the total budget is for each regional development agency for (a) 2007-08, (b) 2008-09, (c) 2009-10 and (d) 2010-11. [159951]
Mr. Timms: The Regional Development Agencies’ allocated budgets for 2007-08 are set out in the table. The Department has also given them indicative budgets for 2008-09 to 2010-11 to enable them to produce Corporate Plans for approval in the new year.
£000
RDA
2007-08
2008-09
2009-10
2010-11
Advantage West Midlands
290,960
279,064
275,378
268,914
East of England Development Agency
136,557
131,803
130,228
127,184
East Midlands Development Agency
175,536
159,709
157,668
153,972
London Development Agency
374,149
389,674
384,626
375,604
North West Development Agency
395,003
391,611
386,442
377,371
One North East
277,050
247,696
244,361
238,619
South East England Development Agency
162,887
159,707
157,832
154,145
South West of England Regional Development Agency
159,339
156,981
155,053
151,425
Yorkshire Forward
304,316
303,049
299,048
292,028
Information from BIS for 2008-2011
“The RDAs’ allocated budgets for 2008-09 and 2009-10 are set out below, together with their indicative allocations for 2010-11. These take account of all changes that have been agreed with the RDAs post-CSR 2007 Settlement:
Total RDA Allocation by Region
£ million
2008-09
£ million
2009-10
£ million
2010-11
Budget per Head (£)
Advantage West Midlands
296
295
212
55
East of England Development Agency
132
136
108
24
East Midlands Development Agency
161
160
131
37
London Development Agency
346
375
326
50
North West Development Agency
385
397
305
58
One NorthEast
245
249
195
98
South East England Development Agency
161
165
133
20
South West of England Regional Development Agency
170
157
125
31
Yorkshire Forward
297
317
228
62
TOTAL [Single Budget]
2,193
2,253
1,762
“In addition to their Single Budget, the RDAs have taken over management of the European Regional Development Fund (ERDF) and the Rural Development Programme for England (RDPE). Both programmes run from 2007 to 2013 and together amount to £9bn. Associated administration costs have been provided by: CLG (£6m), included in all three years; but DEFRA (£4m) included for 2008-09 and 2009-10 only as it is allocated on an annual basis.””
“As part of the CSR 2007, the RDAs budgets over the three years were reduced by 2.5% (£320m). In addition, the RDAs identified cash savings of about £350m, which will be funded from value for money savings.”” (http://www.berr.gov.uk/whatwedo/regional/regional-dev-agencies/funding-financial-gov/page20136.html)