Government Cuts See Potential Videogame Funding Down

The UK Government’s recently announced budget saw Regional Development Agencies facing cuts of around £270 million. The RDAs fund local industries and aim to improve local business and employment, some of which fund videogame related projects and companies.

In reaction to this, industry pressure group TIGA has released a statement to Develop expressing their disappointment at the cuts, which they called ‘œclearly terrible news’. TIGA’s CEO Richard Wilson said that ‘œwe are in very uncertain times, and more cuts are yet to come.’

Regional Development Agencies were set up in 1999 with an aim to improve individual region’s economic development and focus on regeneration, training and business efficiency. Each general area receives funding separately, although they all take from a central Government fund. This means the North Eastern RDA has spent substantially on videogames, while others such as those in the East Midlands and the South East have given little or no support to videogame related projects; something TIGA has complained about before.

Speaking in a statement on its website, the RDA group said that the cuts “will not be easy particularly as we are already six weeks into the current financial year. [...] We do not yet know which individual projects and areas of RDA work will be affected, but [...] we cannot rule out at this stage looking to delay or scale back on some projects to which we are already committed.’

TIGA CEO Richard Wilson concluded that it was ‘œeasier’ for the Government to cut funding for businesses rather than schools and hospitals, but added that ‘œit’s not surprising, but that doesn’t make it any easier’ and called on tax relief for the videogame sector as ‘œthe best way the UK can remain competitive ‘“ because right now we have a very unfair tax system.’