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TIGA says UK game industry will decline 5% YoY without tax incentives

Tuesday, 27th October 2009 21:49 GMT By Stephany Nunneley

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TIGA has said that the UK development industry could face a 5 percent year-on-year decline should the government decline to issue tax breaks – where as on the flips side, it could grow annually by 4 percent should incentives go into effect.

“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,” said Gareth Edmondson, TIGA vice chairman.

“Unless the UK government introduces TIGA’s proposed games tax relief, our research suggests that employment in the development sector will fall by 5 percent in each of the next five years, from 9025 in 2009 to 7351 in 2014. There would also be a fall of £1.9 million ($3.1 million) in development expenditure over the same period.

“With games tax relief enacted, the industry would stop shrinking in 2010, grow by 2 percent in 2011 and by 4 percent in each of the next three years. 3550 graduate level jobs and £457 million ($750 million) of investments in the development sector would be created or protected with the advent of the tax break.”

Edmondson went on to state that within five years the measure would cost £192 million $315 million) but would deliver £415 million ($682 million) in tax receipts.

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