The videogames industry is a key contributor to the post-industrial UK economy, at a time when the creative industries and services sector are steadily growing in importance.
But safeguarding this contribution means ensuring the continued health of companies working in the industry - and the sector's representative body TIGA (The Independent Games Developers Association) is doing just that by encouraging all those working in the videogames sector to sign up to the Prompt Payment Code and avoid late payment.
This outlines three commitments for signatories to stick to:
1. Pay suppliers on time
- within pre-agreed contract terms
- without retrospectively changing those terms
- without treating smaller companies differently from larger ones
2. Give suppliers clear guidance
- by providing clear guidance on payment procedures
- by creating and publicising a process for payments-related complaints
- by advising suppliers promptly if an invoice will not be paid as agreed
3. Encourage good practice
- by encouraging companies at the top of the supply chain to promote its uptake further down
Supporting the videogames sector
The videogames sector has long been recognised as a key part of the UK economy, and is treated accordingly - with tax breaks for new game developments, for instance.
However, like any industry, its participants are subject to the dangers of restricted cashflow, and keeping funds moving throughout the supply chain is an important element in overcoming this problem.