UK’s video game talent and intellectual property could be lost to France, Australia and Ireland if the government doesn’t act
The UK could lose video gaming talent and intellectual property to France, Australia and Ireland unless the government ‘levels up’ its support for the industry, say leading audit, tax and business advisory firm, Blick Rothenberg.
Mandy Girder, a partner at the firm, said: “Without decisive action from the government, the UK risks losing both talent and intellectual property to other countries. France, Australia and Ireland are offering increasingly generous and accessible incentive regimes designed to attract investment.”
She added: “The London Games Festival, held this week, is an annual event for both consumers and gaming companies, which highlights the UK’s undeniable creative strength. But creativity alone will not secure long-term global leadership, the government must step up tax relief and investment in the industry.”
Mandy said: “The UK’s Video Games Expenditure Credit and broader creative industry incentives have played an important role in supporting growth, and while competitive on headline rates, they are often viewed as more complex and, in some cases, less flexible or accessible than incentive regimes in countries such as Ireland and Australia.”
She added: “Recent changes to eligibility criteria are having an impact. Companies must now ensure that at least 10% of development costs are incurred in the UK, rather than across the wider European Economic Area. Whilst intended to encourage use of UK based talent – this has been restrictive on the number of successful claims for projects already underway and structured around European teams, which has led to a decline in the availability of these tax credits.”
She added: “Simplifying and enhancing the UK’s tax framework alongside introducing targeted incentives to attract inward investment would significantly strengthen the UK’s global positioning.”
Mandy said: “Access to finance remains another critical challenge. While early-stage funding is relatively accessible, mid-sized studios often face barriers when seeking the scale-up capital needed to expand internationally and retain valuable intellectual property. This funding gap risks limiting the UK’s ability to fully capitalise on its creative strengths.”
She added: “The UK government’s Creative Industries Sector Plan, actioned this week, is a positive step forward, with £28.5m in funding now available and open for applicants to support the next generation of video game development. The UK has long been recognised as a creative powerhouse, home to world-class studios and exceptional talent behind globally successful titles such as Grand Theft Auto and Tomb Raider.”
Mandy said: “However, the question remains whether this level of support is sufficient to address the structural funding challenges facing the sector. A more comprehensive approach combining competitive tax relief, grants and alternative financing options will be essential to unlock sustained growth.”
She added: “Now is the time for industry and government to work together to simplify incentives, unlock scale-up funding, and ensure the UK remains a destination of choice for global games investment. The London Games Festival turns the spotlight to the UK’s role as a leading force in the global video games market – and on the steps the government needs to take to secure its future competitiveness.”