Redirecting Tax Breaks to Foster Skills Development in the UK Gaming Industry

The gaming industry is thriving, with the UK sector receiving £197 million in tax breaks last year. However, the industry faces significant challenges, particularly in terms of skills shortages and talent development. Despite the success of the Video Game Tax Relief scheme, the majority of the funds are allocated to large, profitable companies, rather than supporting the development of British talent. It is essential to create a national program or initiative that addresses the skills challenges in the gaming industry. Implementing a 2% levy on companies claiming over £2 million in tax relief could raise approximately £3 million, which could be used to fund initiatives such as internship programs, education, and skills development. This approach has been successful in the film and television industries, which have established skills funds to support talent development. The UK gaming industry needs a shared skills agenda, and it is crucial for the sector to commit financially to making this happen. A consultation will be launched to create a Games Future Skills Agenda and a complementary Games Skills Fund, which will work collectively to address the long-term challenges facing the industry.