UK announces £30 million funding package and tax breaks as it aims to be the ‘best place in the world to make games’
The UK government has announced a series of new measures which it plans to use to ‘cement its position as the best place in the world to make games’.
The measures, which form part of the government’s new 10-year Creative Industries sector plan, include everything from funding packages to tax breaks and education initiatives.
“We are one of the world’s largest exporters of video games, and hit titles such as Grand Theft Auto and PowerWash Simulator are made across the country, with nearly 80% of developers based outside London,” the government said.
“We want to enable the next generation of UK games companies and talent that will be the foundation of future games growth and productivity, sitting within a thriving IT, software and computing Creative Industries sub-sector.”
Accompanying data published by the UK government shows video games jobs are highly productive – nearly double the average national output. There are also other spillover benefits. Technology developed by games businesses contributes an estimated £1.3 billion output to the UK economy, from autonomous vehicles to virtual reality surgical training tools.
New measures
The report notes that the UK must retain a balance of incentives and highly specialised talent to remain attractive to international developers. UK studios also need the right finance to capitalise on growing consumer demand as the sector recovers from a global market correction, it said.
Some of the specific measures which the UK government will include to promote video game development in the country include:
- A new £30 million Games Growth Package over three years to back the next generation of start-up games studios and talent, and drive inward investment in the sector. This includes enhancing the UK Games Fund (UKGF) by providing support for new UK titles and skills over 2026-29, attracting match-funding for every supported project.
- Government will provide funding for the London Games Festival to help strengthen investor partnerships, including with regional games clusters, doubling the value (to £30 million per year) of private investment deals at the festival.
- Stable, efficient and competitive tax measures for video games production underpinned by effective administration by the BFI and HMRC. Government will maintain a Video Game Expenditure Credit for video game developers. The government will also continue to work with stakeholders to ensure the continued effectiveness of the reliefs.
- DSIT’s UK-wide TechFirst programme will train the next generation of tech pioneers, with benefits across the sector, including for the video games sector.
- A new industry-led UK Video Games Council of industry representatives will work with the government and the Creative Industries Council to support growth of the video games sector.
- A new industry-led video games skills strategy in 2025, developed and published by a sector-convened UK Games Skills Network, which will build on findings from the upcoming Creative Industries Council Skills Audit, giving video games skills organisations and delivery partners a clear remit for tackling persistent skills gaps.
