The UK government has officially revealed a wide-ranging plan aimed at strengthening its role as the top global center for video game development. A full set of measures, including funding, tax benefits, and programs to develop skills, will be introduced over the next ten years as part of the government’s new 10-year plan for the Creative Industries.
The government said, “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. 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.”
The UK Wants to Be the Number One Country for Games
The economic impact of the video games sector is a major reason for this investment. Government figures show that jobs in video games are highly productive, generating nearly twice the average national output. Beyond the direct economic benefits of game development, the announcement also stresses the wider technological advantages. Technologies created in the games industry add an estimated $1.6 billion to the UK economy by being used in other areas, such as self-driving cars and virtual reality tools for surgical training.
The heart of the government’s plan is a multi-part strategy to strengthen every part of the video game development ecosystem. A key part of this plan is the introduction of a $38 million Games Growth Package. This fund will be spread over three years, with a focus on supporting new game studios and up-and-coming talent.
It is also meant to bring more outside investment into the UK games sector. A major part of this package will be expanding the UK Games Fund (UKGF) from 2026 to 2029. The UKGF will concentrate on offering crucial support for new UK game projects and developing talent. Additionally, the expanded UKGF will work to secure matching funding for every project it backs, effectively using government investment to encourage more private sector involvement.
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Understanding the need to build partnerships and attract investment, the government is also putting significant funding into the London Games Festival. This investment is intended to strengthen ties between investors and game developers, especially by linking investors with game development hubs across the UK. The aim is to double the value of private investment deals made at the festival, reaching $38 million per year. This will help drive further growth and opportunities in the UK games industry.
The government promises to maintain effective Video Game Expenditure Credits for video game developers. The BFI (British Film Institute) and HMRC (Her Majesty’s Revenue and Customs) will keep managing these credits, ensuring smooth and helpful support for developers. The government also plans to keep working with industry experts to improve these benefits and make sure they stay useful in a fast-changing market.
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To tackle the need for a skilled workforce, the DSIT’s (Department for Science, Innovation and Technology) UK-wide TechFirst program will be important. This program is designed to train the next generation of tech leaders, offering benefits to the whole technology sector, including video games.
To make sure these efforts are effective and relevant, a new UK Video Games Council led by the industry will be set up. This council, made up of representatives from across the industry, will work closely with the government and the Creative Industries Council to help the video games sector grow. The council will offer valuable advice and direction, ensuring government policies meet the needs of the industry.
Source: Hotminute
