UK Game Studios Received £197m in Tax Breaks: Let's Invest in Skills

The UK's entertainment sector is thriving, with the games industry experiencing remarkable growth despite post-pandemic challenges. However, the sector still faces numerous hurdles, primarily related to skills shortages and talent development. The Video Game Tax Relief scheme, which provided £197 million in tax breaks to game studios last year, has been successful in stimulating growth, but its benefits have largely been reaped by large, profitable organizations. The British games industry requires a sustainable pipeline of homegrown talent, and it is essential to develop a skills agenda that addresses the sector's specific challenges. Currently, there is no national program or initiative dedicated to supporting the skills challenges of the UK games industry. A proposed 2% levy on games companies that claimed over £2 million in tax relief could raise approximately £3 million, which could be used to fund initiatives that tackle skills shortages, promote diverse talent, and support education. This approach has been successful in the UK film and high-end television industries, which have established skills funds to support training and development programs. The UK games industry needs a new, shared skills agenda, and it is crucial for the sector to commit financially to making this happen. A collective effort is required to address the industry's skills challenges, and a consultation will be held to create a Games Future Skills Agenda and a complementary Games Skills Fund. The goal is to work collaboratively and transparently to develop solutions to the sector's long-term challenges, ensuring a sustainable future for the UK games industry.