TIGA have submitted their recommendations to the Chancellor Rt Hon Rishi Sunak MP, ahead of the Budget.
TIGA has called for the Government to introduce a Video Games Investment Fund (VGIF), which would provide smaller developers with the finance to grow and improve productivity. A VGIF would make grants or loans available to games businesses on a matched funding basis, which would in turn provide funding of between £75,000 and £500,000 to games developers nationwide.
TIGA have also recommended that Video Games Tax Relief (VGTR) is retained and improved. Since its introduction in 2014, a total of 480 video games productions have claimed VGTR, accounting for over £1 billion of UK expenditure. TIGA research shows that an increase in the rate of relief to 27.5 or 30 per cent would help support significant growth in the UK games industry, increasing employment, innovation and investment and therefore enabling it to compete on a more level digital playing field with overseas competitors.
Following the UK’s departure from the EU, it is important to ensure that funding and support for the video games industry is maintained and strengthened in the upcoming Budget.
Dr Richard Wilson OBE, CEO of TIGA said:
“The UK video games industry is a high skills, high technology and export focused industry. Our sector has the potential to support employment and growth throughout the UK, with clusters of games development from Brighton to Dundee and 80 per cent of the workforce based outside of London.
“Access to finance remains the most common challenge for many video games businesses. This is why, ahead of the March 2020 Budget, TIGA has called for the Government to examine the case for a Video Games Investment Fund to support the long-term growth of the video games industry. This initiative, alongside the retention of Video Games Tax Relief, would allow the continued success and growth of the tech industry for years to come.”