The UK video games industry, known for its creativity and innovation, is urging the Government to reform the Video Games Expenditure Credit (VGEC) to maintain international competitiveness and drive further growth.. Following extensive research with Nordicity, Ukie, the trade body representing the UK’s video games and interactive entertainment sector, is advocating for two major changes. The first proposal introduces a ‘games growth’ rate of 53% for projects with budgets of £10 million or less, aiming to support smaller studios and encourage creativity. The second calls for increasing the current relief rate to 39% for larger projects exceeding £10 million under the Enhanced Relief scheme while removing the 80% cap on qualifying expenditure to maximize financial support.. These reforms would position the UK as a global leader in video game tax incentives, fostering greater investment and ensuring sustained industry growth.. Nick Poole, the CEO of Ukie, mrntioned:. The UK’s video games industry has seen substantial growth, driven by the VGEC, but this competitive advantage has been eroded over the past decade. Our industry has the talent, the creativity, and the ambition to lead the world in game development. Now is the time to supercharge growth with a VGEC that fully supports studios of all sizes. By pressing start on this enhanced approach, it will not only support the industry’s long-term sustainability but also create new opportunities for job growth and economic impact.. The UK’s creative industries generate £126 billion annually, with video games standing out as a major contributor. Ukie is calling on the Government to work more closely with the sector, modernize outdated classifications, and tailor financial support to better meet the industry’s evolving needs.. Maria Sayans, the CEO Ustwo games, added:. The UK games industry is a global success story, but maintaining that position requires bold action. Reforming the Video Games Expenditure Credit to better support both small and large studios will ensure we continue to attract investment, create jobs, and produce world-leading games. We want to guarantee the future of an industry that delivers both cultural and economic value to the UK.
