TIGA CEO Calls on UK Government to Do More for Games Industry

October 6, 2011 -

In a guest editorial on the UK version of the Huffington Post, TIGA CEO Richard Wilson ask the British government to give the game industry a break ... a tax break.

TIGA, the trade association representing the UK video games industry, published a report this week entitled "State of the UK Games Development Sector 2011," which highlights why the government should support the industry: it creates jobs and generates taxable revenue. Wilson highlights three challenges the industry faces in his editorial:

"Firstly, our competitors, including Canada, France, Singapore and the USA all provide national or regional tax relief for games production, which typically effectively reduce the cost of employment and games production. No tax relief for games development exists in the UK. Between 2008 and 2010 employment in the British games industry fell by 9 per cent and annual investment declined from £458 million to £417 million. Conversely, the Canadian games industry has grown by 33 per cent over the same period. The British video games industry is competing with a ball and chain tied to its ankles. A tax break would enable our industry to compete on a level playing field. Yet the Coalition Government dropped TIGA's tax break in the June 2010 Budget.

Secondly, two-fifths of our development studios are held back by a lack of finance. Access to debt, bond and equity finance is difficult because of uncertainty about consumer demand for video games and because of the intangible nature of IP. Bank finance is therefore very unlikely to become a principal source of finance for game developers. Treasury wheezes like Credit Easing may help larger businesses in the medium term but they provide no immediate assistance for creative industries such as games development.

Thirdly, our industry faces recruitment difficulties. Two-fifths of developers have suffered from skill shortages over the last 12 months. This is partly because the domestic supply of high quality graduates in disciplines such as computer science is limited. The proportion of computer science graduates has fallen by a quarter in recent years. These skill shortages are amplified by a brain drain of talented staff to overseas jurisdictions, particularly Canada."

So how can the government help to foster growth? Tax breaks, of course. Wilson is calling on the government to introduce tax relief for games production; the creation of a Creative Content Fund (CCF) that offers matched funding for approved game production projects. and a pilot program where tuition fees for students studying mathematics and computer science degrees are competitively priced in comparison to other degrees to incentivize the study of these subjects.

Wilson ends his editorial by saying that UK game developers are high technology, highly skilled, low carbon businesses that have the potential to succeed in global markets and to contribute to the necessary rebalancing of the UK economy.

"The Prime Minister, David Cameron, called for a spirit of "can-do optimism" in his speech to the Conservative Party Conference in Manchester. We have a can-do games industry. What we now need is a 'can-do' Government."

Source: Huffington Post UK

 


 
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Matthew Wilsongoogle wont pay becouse they control a large part of the backbone that all isps depend on. if verizon blocks their data, google does the same. the effect is Verizon loses access to 40% of the internet, and can not serve some areas at all.04/24/2014 - 1:14pm
Neenekolack of NN is in google and netflix interest. It is another tool for squeezing out smaller companies since they can afford to 'play'04/24/2014 - 12:57pm
Matthew WilsonI have said it before net nutrality will not be made in to law until Google or Netflix is blocked, or they do what they did for sopa and pull their sites down in protest.04/23/2014 - 8:02pm
Andrew EisenGee, I guess putting a former cable industry lobbyist as the Chairman of the FCC wasn't that great of an idea. http://www.nytimes.com/2014/04/24/technology/fcc-new-net-neutrality-rules.html?_r=204/23/2014 - 7:26pm
Andrew EisenIanC - I assume what he's getting at is the fact that once PS3/360 development ceases, there will be no more "For Everything But Wii U" games.04/23/2014 - 5:49pm
Andrew EisenMatthew - Yes, obviously developers will eventually move on from the PS3 and 360 but the phrase will continue to mean exactly what it means.04/23/2014 - 5:45pm
IanCAnd how does that equal his annoying phrase being meaningless?04/23/2014 - 5:09pm
Matthew Wilson@Andrew Eisen the phrase everything but wiiu will be meaningless afer this year becouse devs will drop 360/ps3 support.04/23/2014 - 4:43pm
Andrew EisenFor Everything But... 360? Huh, not many games can claim that title. Only three others that I know of.04/23/2014 - 3:45pm
MaskedPixelantehttp://www.joystiq.com/2014/04/23/another-world-rated-for-current-consoles-handhelds-in-germany/ Another World fulfills legal obligations of being on every gaming system under the sun.04/23/2014 - 12:34pm
Matthew Wilsonhttp://arstechnica.com/gaming/2014/04/steam-gauge-do-strong-reviews-lead-to-stronger-sales-on-steam/?comments=1 Here is another data driven article using sales data from steam to figure out if reviews effect sales. It is stats heavy like the last one.04/23/2014 - 11:33am
Andrew EisenI love RPGs but I didn't much care for Tales of Symphonia. I didn't bother with its sequel.04/23/2014 - 11:21am
InfophileIt had great RPGs because MS wanted to use them to break into Japan. (Which had the side-effect of screwing NA PS3 owners out of Tales of Vesperia. No, I'm not bitter, why do you ask?)04/23/2014 - 10:52am
RedMageI'm still disappointed the 360 never broke into Japan either. It had a bevy of great RPGs in the late 2000s.04/23/2014 - 9:48am
TheSmokeyhttp://www.huffingtonpost.com/2014/04/22/call-of-duty-swatting-hoax_n_5195659.html?utm_hp_ref=canada&ir=Canada CoD loser calls SWAT on person who beat him04/23/2014 - 7:13am
MaskedPixelantehttp://www.joystiq.com/2014/04/23/xbox-one-reaches-japan-on-september-4/ Just give it up, Microsoft. You're NEVER going to be big in Japan, especially now that the notoriously clunky in Japan Kinect is MANDATORY.04/23/2014 - 7:10am
Cheater87Has this been posted yet? http://www.destructoid.com/blogs/Lord+Spencer/ssv-saudi-arabia-bans-bravely-default-because-it-promotes-pedophilia--272016.phtml04/22/2014 - 9:31pm
ZippyDSMleehttp://www.escapistmagazine.com/news/view/133898-Fatal-Frame-V-Coming-Exclusively-to-Wii-U04/22/2014 - 8:50pm
Matthew Wilsonit is a game worth playing if you have a pc/360/ps304/20/2014 - 9:34pm
MaskedPixelantehttps://twitter.com/IGLevine/status/457552538343325696 The Lutece Twins show up in some of the most unlikely of places.04/20/2014 - 2:44pm
 

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