Ukie’s submission to Autumn Budget 2024

Submitted – 10th September 2024

The UK video games industry stands as a dynamic powerhouse, driving innovation and significant economic growth within the nation’s creative sector. Its rapid expansion positions it as a cornerstone for a bold, mission-driven approach to national renewal. To fully capitalise on this potential, it is imperative that the UK Government strategically considers how to support and leverage this thriving industry. This includes addressing key challenges such as maintaining competitive tax policies, facilitating access to finance, attracting investment, and tackling skills shortages. By proactively engaging with these areas, the UK can solidify its role as a leading force in the global video games landscape.

Recognising the global competitive landscape, Ukie highlights that other nations are actively implementing or enhancing generous tax relief measures and developing clear growth strategies to bolster their domestic video games industries. Canada has emerged as a leader in this regard, with countries like Ireland, France, and Australia having established or renewed supportive tax frameworks. Germany’s recent announcement of substantial funding further underscores this international trend.

The UK’s own Video Games Tax Relief (VGTR), now the Video Games Expenditure Credit (VGEC), has demonstrably underpinned significant growth in the UK video games sector since its inception in 2014. While the sector has experienced an average of 7% annual growth, ongoing challenges in areas such as high profile redundancies, studio closures, and diminishing external investment necessitate continued and enhanced government support. Strategic intervention in these areas will be crucial to supercharge the sector, contributing significantly to the UK’s economic prosperity and generating high-skilled employment opportunities.