Regulatory budgets

Immediate release

November 20th 2008

Tiga today backed the Government’s plans to introduce regulatory budgets as a way of reducing the regulatory burden on UK businesses, including small and medium-sized enterprises (SMEs) in the video games sector. However, Tiga urged the Government to remember that UK businesses such as games developers compete in a global market. Regulatory budgets should be framed to help ensure that the UK creates the most conducive regulatory environment in which to operate a business. Tiga made the comments in response to the Government’s policy paper, Regulatory Budgets: a consultation document.

Richard Wilson, CEO of Tiga, said:

“The majority of UK games developers are SMEs and the burden of regulation typically falls disproportionately on these enterprises. A recent Tiga survey of games businesses revealed that 12% of respondents believe that the regulatory environment in the UK is holding their business back.

“UK games businesses are not simply competing against other businesses in the UK or in the European Union (EU). They are also competing against developers in countries outside of the EU, in particular, the USA, Canada and Japan. The UK Government must bear this in mind when setting regulatory budgets.

“According to the World Bank, the regulatory environment is more conducive to the operation of a business in the UK in comparison to Canada and to Japan. However, it is easier to set up a business, to do business, to employ workers and to enforce a contract in the USA than it is in the UK.

“Tiga’s vision is to make the UK the best place in the world to do games business. The Government can help to realise this vision and to assist firms in other economic sectors by ensuring that its regulatory budgets decisively cut the cost and complexity of regulations. The UK should aspire to create the most conducive regulatory environment in which to operate a business.”

End.

Notes to editors:

1. Tiga is the national trade association that represents games developers in the UK and in Europe. We have 160 members, the majority of whom are either independent games developers or in-house publisher owned developers. We also have outsourcing companies, technology businesses and university departments that are members.

2. Tiga’s vision is to make the UK the best place in the world to do games business. We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members. This means that Tiga members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.

3. For further information, please contact: Dr Richard Wilson, Tiga CEO on: 0845 0941095; Mob: 07875 939643; or: Email: richard.wilson@tiga.org.

4. The British Chambers of Commerce’s Burdens Barometer shows that the cumulative cost to business of new regulations introduced since 1998 has risen to £65.99 billion. See http://www.britishchambers.org.uk/6798219243315023264/regulation.html.

5. In simple terms, the regulatory budget process would involve the Government setting regulatory budgets on the basis of estimates of the likely costs and benefits of proposed regulations produced by individual government departments and agencies. It will be crucially important for government departments and agencies to produce reasonably reliable Impact Assessment data. Impact Assessments should be scrutinised and if necessary amended by an independent third party. Parliament’s select committees should also take a keen interest in the validity of Impact Assessments and in the reports produced by Government departments and agencies concerning their progress against their regulatory budgets.

6. Overall, the World Bank ranked the UK as the sixth best place in the world to do business in 2008, behind Singapore, New Zealand, the USA, Hong Kong/China, and Denmark. Canada and Japan are in eighth and 12th position, respectively. See http://www.doingbusiness.org/economyrankings/