TIGA, the trade association representing the UK games industry, said today (6th June, 2011) that the decline in inward investment into the UK confirmed the need for the Government to adopt a much more aggressive growth policy. Figures revealed in a parliamentary answer showed that in the financial year 2009/10 the UK attracted a total of 1,619 Foreign Direct Investment (FDI) projects, down by 7 per cent on 2008/09.
The UK video games industry is heavily reliant on global publishers for inward investment. Last year 76 per cent of all investment in the UK games industry was from global publishers. Investment by UK video games studios fell by £41 million between 2008 and 2010.
Dr. Richard Wilson, TIGA CEO, commented:
“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.”
TIGA is the trade association representing the UK’s games industry. Their vision is to make the UK the best place in the world to do games business, focussing on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of their members.