UK Video Games Tax Relief Spurs £2.4 Billion in Economic Growth Since 2014

Since its introduction in 2014, the UK's Video Games Tax Relief has generated an estimated £2.4 billion in additional economic growth, as per analysis by Games Investor Consulting. Between 2014 and 2022, the Treasury has disbursed over £1.1 billion to UK companies. The UK games development sector has invested £1.2 billion in over 15,000 new creative roles since the tax relief was announced in 2012. As a result, the tax relief has helped games companies generate and protect nearly 18,000 development jobs, as well as an additional 32,000 jobs in the supply chain, contributing over £3 billion in new GDP contributions from games since 2012. The development landscape has undergone significant growth since the tax incentive was announced, with the number of games development studios in the UK increasing substantially. Prior to the tax relief, the UK games development sector was experiencing a decline, with major international games companies shutting down UK studios and investing in other markets. However, following the introduction of the tax relief, the industry has experienced continuous growth, with a record 24,000 games development staff recorded in 2023. The Video Games Tax Relief has been instrumental in transforming the UK video games industry, enabling it to compete on a more level playing field against overseas competitors. The relief has created thousands of jobs, spurred millions of pounds in investment, and boosted economic growth, contributing to a renaissance in the UK video games industry. The tax relief will be replaced by the new Video Games Expenditure Credit in January 2024, which will offer a relief rate of 34% on 80% of qualifying expenditure. However, concerns have been raised that the new credit may not be as beneficial as initially thought, with the trade body TIGA warning that growth could be jeopardized unless the relief is improved.