TIGA Comments on Zurich Insurance Report Conclusions

August 31, 2011 -

UK video game industry trade group TIGA said today that high technology businesses in the region were at risk of a "brain drain and skill shortages," complicated and compounded by the existence of tax breaks in other countries. The group has long sought tax breaks and incentives for the video game industry, but the financial downturn and austerity measures in the UK forced the government to abandon any measures that were on the table at the time. TIGA made the comments following a report ("The Technology Hazard Warning Report") by Zurich Insurance, which revealed that 57 percent of the UK’s mid-sized technology companies (turnover of £5 - £30 million per annum) feel that they are at risk from losing skilled employees.

The report (p. 10) offers this conclusion:

"Many qualified workers are exploring the opportunity to work abroad, with an estimated 67 per cent of IT workers considering or having applied for a position overseas according to a study by the IT job board. Portability of skills, coupled with higher salaries and the chance to enhance lifestyle are cited as the key reasons for considering a move abroad…Experts warn that the lack of students opting to study technology related subjects, coupled with tax breaks offered by other countries to entice business, means we are compounding problems further for the future."

Dr Richard Wilson, TIGA's CEO, concluded that the report confirms three of the trade groups long standing arguments: the UK is in a precarious position when it comes to "brain drain" because the region is losing highly skilled IT workers to other regions; low numbers of students studying technology subjects such as computer science is creating recruitment problems for the industry; and tax breaks that help with games production in other regions are hurting the UK.

"To surmount the challenges posed by the brain drain and skill shortages we need to incentivise students to study subjects such as mathematics and computer science," said Wilson. "Additionally, we need the Coalition Government to enable UK high technology businesses to compete on a level playing field. Many of our key competitors benefit from generous tax breaks. The UK games industry does not. TIGA will continue to make the case for a tax break for games production and for improved R&D tax credits."

More details on the Zurich Insurance report can be found here.


 
Forgot your password?
Username :
Password :

Poll

Is King right? Should all games adopt the free-to-play model?:

Shout box

You're not permitted to post shouts.
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
MaskedPixelanteWell, I am officially done with Night Dive Studios. Unless they can bring something worthwhile back, I'm never buying another game from them.04/17/2014 - 2:29pm
PHX Corphttp://www.msnbc.com/ronan-farrow/watch/video-games-continue-to-break-the-mold-229561923638 Ronan Farrow Daily on Video games breaking the mold04/17/2014 - 2:13pm
NeenekoAh yes, because by building something nice they were just asking for people to come push them out. Consequences are protested all the time when other people are implementing them.04/17/2014 - 2:06pm
Matthew Wilsonok than they should not protest when the consequences of that choice occur.04/17/2014 - 1:06pm
NeenekoIf people want tall buildings, plenty of other cities with them. Part of freedom and markets is communities deciding what they do and do not want built in their collective space.04/17/2014 - 12:55pm
Sora-ChanI realize that they have ways getting around it, but one reason might be due to earthquakes.04/17/2014 - 4:42am
Matthew WilsonSF is a tech/ economic/ trade center it should be mostly tail building. this whole problem is because of the lack of tail buildings. How would having tail apartment buildings destroy SF? having tail buildings has not runed other cities around the US/world04/16/2014 - 10:51pm
Matthew WilsonAgain the issue is you can not build upwards anywhere in SF at the moment, and no you would not. You would bring prices to where they should have been before the market distortion. those prices are not economic or socially healthy.04/16/2014 - 10:46pm
ZippyDSMleeYou still wind up pushing people out of the non high rise aeras but tis least damage you can do all things considered.04/16/2014 - 10:26pm
ZippyDSMleeANd by mindlessly building upward you make it like every place else hurting property prices,ect,ect. You'll have to slowly segment the region into aeras where you will never build upward then alow some aeras to build upward.04/16/2014 - 10:25pm
Matthew WilsonSF have to build upwards they have natural growth limits. they can not grow outwards. ps growing outwards is terable just look at Orlando or Austin for that.04/16/2014 - 4:15pm
ZippyDSMleeIf they built upward then it would becoem like every other place making it worthless, if they don't build upward they will price people out making it worthless, what they need to do is a mix of things not just one exstreme or another.04/16/2014 - 4:00pm
Matthew Wilsonyou know the problem in SF was not the free market going wrong right? it was government distortion. by not allowing tall buildings to be build they limited supply. that is not free market.04/16/2014 - 3:48pm
 

Be Heard - Contact Your Politician