UK Government Urged to Bolster Support for Thriving Games Industry

The UK video games industry has experienced remarkable growth over the past decade, with a notable increase of over 30% in active games companies since 2016, as evident from the updated UK Games Map. This expansion has sparked interest from investors, regulators, and governments, with MEPs acknowledging the value of the video game ecosystem in the EU and its potential for growth and innovation. Despite some negative perceptions, much of this interest is overwhelmingly positive. Late last year, I had the opportunity to discuss the industry's strength and the impact of incentives like Video Games Tax Relief with MPs in a House of Commons committee room. As we approach nearly a decade since its introduction, this model has been so successful that it is being replicated internationally, from Australia to Germany to Ireland. The UK ecosystem remains competitive and healthy, with diverse talent in the creative and tech sectors, as well as high-quality courses, making it an attractive hub for creatives. Moreover, our presence across the UK drives success, delivering jobs and local economic value. The newly developed Games Map, created with the support of the BFI and Discover Uni, has been an invaluable tool in conveying our story and concerns to Parliamentarians. Initially created in 2016, the map has also been utilized by international companies, investors, and students seeking local opportunities. We urge all UK games businesses to claim their company listing and contribute to our collective narrative. As a national success story that has benefitted communities nationwide, we embody the 'levelling up' slogan. However, it is crucial that we remind decision-makers that our success is not a given. The timing of our work with the Government and the launch of the Games Map coincides with the UK Government's consultation on all screen tax reliefs, including VGTR. We must ensure that we protect this scheme and make improvements where possible. While the UK Government acknowledges the benefits of these tax reliefs, significant proposed changes are on the table. Over the past few months, we have been consulting with our members, the wider industry, and the Government, listening to concerns over these proposed reforms and their potential impact on our system compared to European and international counterparts. We have a survey ongoing to capture the broadest set of views possible. Our mission at UKIE is to maintain the UK as the premier location to create, play, and sell games, so it is vital that we understand what any proposed changes would mean for businesses and the industry. We strive for businesses to thrive in the UK, creating more successful games, driving innovation, employing a diverse range of people, being more sustainable, and ultimately having a more significant impact on our culture, economy, and society. While this review begins with tax, its implications extend far beyond. The industry faces numerous challenges, but the UK Government now has a critical opportunity to champion this unique sector, ensuring it has long-term security in potentially challenging economic times. We urge you to take a few minutes to complete the UKIE VGTR survey and share your views before it closes.