TIGA CEO, Dr. Richard Wilson has today called for the UK government to employ a more aggressive growth policy in response to the 7% decline in FDI (Foreign Direct Investment) projects. The UK video game industry plays host to many talented development studios, Splash Damage (Brink) and Codemasters Southam (Dirt 3) being the most recent to step into the limelight, though their operation and expansion is largely dependent on global publishers. In fact, last year 76% of total investment funds were sourced externally.
With video games becoming the largest grossing media product (and not just in the UK) Wilson believes that re-formulating tax policies surrounding the sector will encourage global publisher, hence increasing UK FDI:
“If the UK economy is to enjoy a strong recovery then we must continue to encourage FDI. The Government must engineer a low tax environment to encourage inward investment in the UK economy. As far as the video games industry is concerned, the Government should look again at the case for a sector specific tax break for games production. Three major global publishers – Activision Blizzard, THQ and Ubisoft – have each stated that they would be more likely to invest in the UK video games sector if we had a tax break for games production. TIGA will continue to refine the case for Games Tax Relief and encourage the Government to think again about the merits of this important measure.”
For more information on TIGA, the trade association representing the UK’s games industry, be sure to check out their official website.
Source: Press Release