TIGA: UK game funding is "incoherent"
Trade association urges government to end post code lottery and introduce national tax relief
TIGA has called funding for the English games industry incoherent and insufficient, and asked that the government end the current post code lottery funding situation in favour of a national Games Tax Relief.
The comments came as new information about the nine English Regional Development Agencies' funding for the games industry was revealed by the government in response to a parliamentary question tabled by the Conservative MP Philip Davies.
TIGA CEO Richard Wilson subsequently referred to the current funding system as "incredible, incoherent and insufficient". Incredible, he said, because under the current arrangements important clusters of game developers, for example in Guildford and Brighton, receive virtually zero support.
"This is not the fault of SEEDA, which through the South East Media Network (SEMN) works effectively with TIGA. SEEDA and the SEMN are relatively underfunded," he said.
He continued that the system was incoherent because the current post code lottery for funding the games sector in England fails to ensure that all regions with potential are adequately supported.
"In instance, while games businesses in Yorkshire are admirably supported by Yorkshire Forward through Game Republic and those in East Anglia by the EEDA through Games Eden, those in Oxfordshire receive no meaningful RDA support."
Many other countries provide generous tax relief for games production and there is no similar tax benefit for game developers in England, he added, explaining why TIGA also considers the system insufficient.
"We need a more rational system of support for the videogames industry in England. In particular, all clusters should be able to access programmes that focus on business-to-business knowledge sharing and strengthening links with local universities," Wilson concluded.
"More funding should be made accessible through national programmes that developers, irrespective of their geographical location, can benefit from. That is one of the reasons why TIGA is advancing the case for a Games Tax Relief. This tax measure – which would benefit games developers throughout the UK - could help 60-80 titles per year, trigger growth in employment, new game development, innovation and investment, and more sustainable business models for British studios by selling directly to consumers."