Time to press start on growth

New data shows UK consumers spent £7.6bn on video games in 2024 and the UK’s growing video games sector is urging government to act swiftly to secure a £500 million growth opportunity or risk seeing world-class talent, innovation, and IP slip away to better-backed international competitors. The data reveals a market doubling in size since 2013, with an explosion of new independent studios and a 24% rise in incorporated games SMEs in Q3 2024 alone. But as other countries ramp up support for their creative tech industries, the UK’s current policy framework is falling behind.

A national opportunity to kickstart growth
Ukie’s new campaign, Press Start on Growth, lays out a roadmap to maintain the UK’s global edge, calling for:

• Reform of the Video Games Expenditure Credit (VGEC): To better support small and independent studios with competitive rates.
• Expansion of the UK Games Fund: To meet surging demand and power the next generation of game-makers.
• Skills and Talent Development: Including the introduction of a new Digital Creativity GCSE to build future pipelines.
• Improved access to finance: To better support scaling studios looking to grow.

Smart policy decisions, delivering strong outcomes

With the right policy decisions in place, Ukie believes the UK’s video games industry is poised to deliver significant economic and societal returns. Specifically, we estimate that targeted support could: 

• Unlock £500 million in GVA across 5 years: By fostering a more competitive, innovation-friendly environment, the UK can position itself as a global hub for game development and publishing.  

• Deliver a fivefold return on investment: Strategic, well-directed public investment in games through tax reliefs doesn’t just pay for itself, it multiplies in value. Every pound invested has the potential to return five, making it one of the smartest bets for the UK’s creative economy. 

• Create 6,000 new jobs within five years: The games industry already employs tens of thousands in disciplines such as coding, design, AI, storytelling, and audio. With the right interventions the sector can significantly boost job creation, supporting the government’s wider ambitions on levelling up, digital skills, and economic resilience.