27 October 2009
TIGA warned today that unless the UK Government introduced a Games Tax Relief the video games development sector would decline by 5% each year over each of the next five years. Conversely, if a Games Tax Relief were to be introduced, then the industry would eventually enjoy annual growth of 4%. TIGA published the figures at the beginning of London Games Festival Week to demonstrate what is at stake for the UK games industry.
Gareth Edmondson, Vice-Chairman of TIGA, Managing Director of Ubisoft Reflections, and speaker at the Best of British event on October 28th said:
The UK games industry is still successful and world leading. However, because most of our key competitors benefit from a tax break for games production, our industry is at a competitive disadvantage. Unless the UK Government introduces TIGAs proposed Games Tax Relief, our research suggests that employment in the development sector will fall by 5% in each of the next five years, from 9,025 in 2009 to 7,351in 2014. There would also be a fall of 1.9 million in development expenditure over the same period.
In contrast, with Games Tax Relief enacted, the industry would stop shrinking in 2010, grow by 2% in 2011 and by 4% in each of the next three years. 3,550 graduate level jobs and 457 million of investments in the development sector would be created or protected with the advent of the tax break. Games Tax Relief would more than pay for itself. Over five years the tax measure would cost 192 million but would deliver 415 million in tax receipts.
The UK Government has a clear choice: invest in an inherently successful industry to perpetuate our leading position in the world, or preside over the decline of a key knowledge industry.
Gareth Edmondson will be speaking on behalf of TIGA at GameHorizons Best of British event on October 28, 2009, as part of this weeks London Games Festival. For more information on this event click here.