Weak economic growth forecasts confirm need for Government to back sectors with growth potential
TIGA, the trade association representing the UK games industry, today urged the UK Coalition Government to power the UK video games sector forward by looking again at Games Tax Relief and implementing it. TIGA made the comments following new concerns about the state of the economy. Citigroup, one of the world’s largest banks and Scotia Capital anticipate that the Office for National Statistics will report GDP growth of – 0.2 per cent in the second quarter of 2011. JP Morgan predicts that GDP was flat in the second quarter.
Dr Richard Wilson, CEO of TIGA, said:
“The latest predictions from private sector economists suggest that the UK economy will have barely grown for the last nine months. With consumer spending under pressure from higher inflation and the VAT hike earlier this year, the UK urgently needs economic growth to come from business investment and exports.
“The UK video games sector is precisely the type of economic sector which can contribute towards the UK economic recovery. Growth prospects in the sector are good, with the global market for video games expected to be grow from $52.5 billion in 2009 to $86.8 billion by 2014. This means that video games are the second fastest growing entertainment and media sector after online advertising.
“The video games sector has the potential to provide substantial employment. According to the Entertainment Software Association in the USA, the video games industry has created 120,000 jobs in more than 34 states in the USA. Over 20 states in the USA have tax breaks for games production or provide other forms of significant government financial support
“UK games developers are high technology, highly skilled, low carbon businesses that have the potential to succeed in global markets.””
Jason Kingsley, TIGA Chairman and CEO and Creative Director at Rebellion, said:
“With the right government support, the UK video games sector can make a valuable contribution towards economic growth. My own company already generates 90 per cent of its turnover through exports. Many other UK video games businesses stand ready to increase exports, invest in R&D and take on more staff – if the Government creates a supportive environment. TIGA will continue to refine its proposals for Games Tax Relief and other incentives in order to make the UK the best place in the world to do games business.””
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Notes to editors:
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 was awarded ‘Trade Association of the Year’ and the ‘Member Recruitment Award’ at the Trade Association Forum Best Practice Awards 2010. TIGA has also been named as a finalist in the 2010 Chartered Management Institute (CMI) National Management and Leadership Awards in the category of ‘The Outstanding Organisation of the Year Award (SME)’. TIGA is an ‘Investors in People’ accredited 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.
PWC Global Entertainment and Media Outlook 2010 – 14 (PWC, 15th June 2010).
Essential Facts about the Computer and Video Game Industry (Entertainment Software Association, 2011).