July 15, 2019
TIGA says that the UK Government needs to ensure that the economic environment remains highly favourable for the UK video games industry. TIGA made the comments following the French Government’s launch of a campaign to lure UK games businesses across the Channel.
TIGA urged the UK Government to consider the following policy measures:
- retain and enhance Video Games Tax Relief (VGTR) by increasing the level of relief from 25% to 30% to stimulate further investment. Research commissioned by TIGA suggests that a 5% increase in VGTR would result in 700 new development jobs, £95 million in new development expenditure and £86 million in new tax receipts;
- introduce a Video Games Investment Fund (VGIF) to enhance studios’ access to finance, promote the development of original IP and encourage studio growth. The VGIF could provide funding of between £75,000 and £500,000 to games developers nationwide. Research commissioned by TIGA shows that the VGIF would have a positive impact. At a cost of £26.5 million over 5 years (2019 to 2023), the VGIF would: create 1,500 jobs and 2,700 indirect jobs; encourage an additional £215 million in development expenditure; and contribute an additional £197 million in tax revenues;
- retain and enhance the UK Games Fund, which provides prototype funding worth up to £25,000; and
- ensure that the UK’s future immigration system enables games businesses to effectively recruit highly skilled people from overseas. The Government should retain the existing roles on the Shortage Occupation List (SOL) that are relevant to the video games industry. It should also add roles to the SOL where there is a specific skills shortage so that employers can recruit the employees they need without undue delay.
To read TIGA’s press release in full, click here.