TIGA Calls on the UK Government to Strengthen the Video Games Expenditure Credit in the Upcoming Autumn Budget

Why It Matters

Strengthening VGEC would directly enhance the UK games industry's contribution to GDP and employment, reinforcing the sector’s role as Europe’s largest video‑games hub. The measures could also attract further investment and talent to the UK market.

Key Takeaways

• VGEC rate proposed at 53% for projects ≤ £23.5m
• Could add £731.7m gross value added to UK economy
• Over 10,500 jobs potentially supported across games sector
• Expand qualifying expenditure from 80% to 100% under VGEC
• Additional UK Games Fund grants to aid studio startups

Pulse Analysis

The video‑games sector has become a cornerstone of the UK’s digital economy, accounting for roughly £12 billion in gross value added (GVA) and employing a highly skilled workforce. By raising the Video Games Expenditure Credit to 53% for mid‑size projects, policymakers can amplify this impact, encouraging studios to scale production and invest in higher‑quality titles. The proposed expansion of qualifying costs to 100% removes a key barrier, ensuring that a larger share of development spend qualifies for relief, which in turn drives cash flow stability for both established and emerging developers.

Beyond direct fiscal incentives, the call for increased UK Games Fund grants targets the pipeline of innovation. Prototype and content grants help nascent studios test concepts and bring them to market, fostering a vibrant ecosystem that can compete globally. When combined with a more generous VGEC, these measures create a virtuous cycle: higher credit rates attract foreign investment, while domestic funding nurtures homegrown talent, ultimately boosting export revenues and reinforcing the UK’s reputation as a leading games production hub.

From a macroeconomic perspective, TIGA’s projections of £731.7 million in additional GVA and 10,500 new jobs align with the government's broader growth agenda. In a climate of modest GDP forecasts—1.1% growth in 2026 rising to 1.6% thereafter—targeted industry support can act as a catalyst for broader economic resilience. Strengthening the VGEC not only safeguards existing jobs but also positions the UK to capture a larger share of the rapidly expanding global gaming market, delivering long‑term fiscal benefits and reinforcing the country’s competitive edge.