TIGA, the organisation which represents the video gaming industry, has welcomed today’s House of Commons debate on the importance of the arts and creative industries.
TIGA says videogames are an important part of the creative industries.
The game development process is a cultural activity on a par with animation and film production. Videogames are developed by teams of artists, animators, musicians, designers, programmers and script writers and are often supplemented by other cultural localisation experts.
Videogaming is also export-oriented with 95 per cent of UK video games developers exporting at least some of their games. The industry is R&D intensive: two-fifths of studios have a budget earmarked for R&D purposes.
The video games sector is also low carbon in output and is therefore environmentally-friendly. This is helped by digital distribution and box products that are light to manufacture.
The top priority for the videogame sector is the introduction of Games Tax Relief, something TIGA has campaigned for for more than five years.
Games Tax Relief was approved in the March 2012 Budget. It is currently subject to investigation by the European Commission. Games Tax Relief is vital.
Many games made in the UK are made with an international or Americanised theme. Games Tax Relief helps to address this problem.
Firstly, Games Tax Relief will enable more studios to self-publish and keep a British feel in their games. Secondly, Games Tax Relief will reduce the cost of games development in the UK and incentivise global publishers to take more of a risk in developing games with a British character.
The UK has been competing on an unlevel playing field with countries such as Canada and the USA having tax breaks of their own which has put the UK at a disadvantage. Games Tax Relief will help level the playing field.
The UK videogames industry is important culturally and economically, contributing £947 million towards the UK’s Gross Domestic Product as well as £400 million in direct and indirect tax revenues to the Exchequer.
TIGA says tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry.
TIGA research from 2012 shows that Games Tax Relief should generate and safeguard 4,661 direct and indirect jobs; £188 million in investment expenditure by studios; increase the games development sector’s contribution to UK GDP by £283 million; generate £172 million in new and protected tax receipts to HM Treasury, and could cost just £96 million over five years.
Dr Richard Wilson, CEO of TIGA, said:
“We welcome today’s debate and want to reiterate once again the great importance of videogaming to the British economy and the creative sector.
“Gaming is an important part of the creative industries and it is vital that we get tax relief for games approved by the European Commission. Access to finance is a critical issue facing companies and it is important the government addresses this challenge.”