Tiga Criticizes UK Government Fiscal Stimulus Plan

Responding to an economic stimulus package proposed by the UK government, trade association Tiga condemned the proposal's long-term strategy to raise taxes, claiming that the tax burden on UK game developers is already prohibitive to their business. Tiga says it recently conducted a survey that found a third of UK games developers are limited by their tax burden. "The economy has already received a major monetary stimulus," said Tiga CEO Richard Wilson. "Base rates are at their lowest since the 1950s and sterling has declined by approximately 25 per cent against the US dollar." "However, at a time when the economy is spiraling deeper into recession, unemployment is at an 11 year high and rising, house prices are falling faster than during the early 1990s property crash and small businesses are suffering from a lack of credit, a fiscal stimulus is a necessary but insufficient approach to take." In its statement, Tiga urged the Bank of England to reduce base rates to circumvent a worsening recession, suggested the government cut income tax and raise personal allowances, and called the government's intention to defer, rather than quash, an increase in taxes on small businesses "disappointing." Tiga did praise guaranteed bank lending plans that help small companies spread their burden, and also support a plan to establish a £25 million fund to help businesses get finances. "The UK’s long term strategy should be foster a low tax economy in order to enable owners and managers to grow their businesses, invest in R&D and spend more on training," said Wilson.