Use the Budget to Improve Access to Finance and Deliver Economic Growth

By March 12, 2012 Press Releases

TIGA, the trade association representing the UK video games industry,
said today that access to capital was holding back the growth of small creative
studios, but that the Coalition Government had an opportunity to ease the
problem in the forthcoming Budget. TIGA made the comments in the light of a recent
survey published by the Federation of Small Business showing that access to
finance was a major barrier to growth for more than one in five small
companies.

 

Dr Richard Wilson, TIGA CEO, said:

 

“Small
businesses generally can have difficulty raising capital, but it can be even
more problematic for high technology businesses such as games development
studios. The intangible nature of IP and uncertainty about consumer demand for
particular games means that it is difficult for many studios to access debt,
equity and bond finance. Significantly, the UK’s share of global investment (venture capital
and private equity) in the games industry declined from 10 per cent in the
mid-2000s to 3.5 per cent. Additionally, finance from global games publishers
is being diverted to jurisdictions with favourable tax environments.

 

“However, the Coalition Government can ease
the problem by introducing a carefully targeted tax break for games production.
This would improve access to finance for independent studios, attract
investment from global publishers and expand the venture capital market for
games companies. It would have a positive impact on the sector in a short space
of time, accelerate growth and power UK businesses forward.”

 

TIGA research into a Games Tax
Relief predicts that over 5 years Games Tax Relief would generate and safeguard: over 4,660 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.

 

About TIGA:

TIGA is the trade association representing the UK’s games 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. TIGA won 10 business awards and was nominated a finalist for 9
other awards during 2010 and 2011.  In 2010 TIGA won two business awards including
‘Trade Association of the Year’ from the Trade Association Forum.

In 2011, TIGA
won eight business awards including ‘Trade Association of the Year’ from the
Trade Association Forum, ‘Outstanding Organisation’ from the Chartered
Management Institute and two Global Business Excellence Awards, including
‘Outstanding Marketing Campaign’. 
Richard Wilson won the ‘Leadership Award’ from the Trade Association
Forum and the ‘Outstanding Leader’ award from the Chartered Management
Institute.

TIGA is an Investors in People organisation.

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.

For further information, please contact
Dr Richard Wilson, TIGA CEO on: 07875 939 643, or email richard.wilson@tiga.org.

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