TIGA calls on government to enhance Video Games Expenditure Credit, following Spring Statement 2026

TIGA, the trade association representing the UK video games industry, urged the Government to enhance the Video Games Expenditure Credit (VGEC) in the Autumn Budget as part of a strategy to drive economic growth. TIGA made the comments following The Rt Hon Rachel Reeves’ Spring Statement on 3^rd March 2026.

Key announcements made by the Chancellor of the Exchequer in the Spring Statement and the Office for Budgetary Responsibilty’s (OBR) forecasts include the following:

• Growth is expected to be 1.1 per cent in 2026, a downgrade from the November 2025 forecast that the economy would grow by 1.4 per cent
• Growth is forecast to be 1.6 per cent in 2027 and 1.6 per cent in 2028.
• Unemployment is expected to peak at 5.3 per cent in 2026 and then decline to 4.1 per cent by 2030, according to the OBR.
• The Bank of England’s inflation target of 2 per cent should be reached this year.
• The budget is set to be in surplus by 2028-29, meeting the Government’s ‘stability rule’ of matching day-to-day spending with revenues.
• Public debt is forecast to decline from 82.9 per cent of GDP in 2028-29 to 82.2 per cent in 2029-30.
• Borrowing is expected to be £132.7 billion in 2026.

These forecasts do not take into account any ramifications from the conflict in the Middle East.

The Chancellor eschewed big policy announcements, having committed to holding one fiscal event each year in the autumn.

TIGA has advanced the following proposals to grow the UK video games industry:

• The Government should consider enhancing the Video Games Expenditure Credit (VGEC): Government could introduce a rate of 53% on 80 per cent of qualifying costs for projects up to £23.5 million. This could boost GVA by £482 million and create 6,952 jobs (including 896 development roles). It would ‘cost’ HMRC £135 million but generate £156.4 million in tax revenue. Even if the enhanced VGEC was restricted to games with budgets of up to £15 million, this would increase the sector’s GVA by £434 million and create 6,264 jobs, including 807 development roles. It would cost HMRC £122 million but generate £144million in tax receipts.
• Increase the VGEC rate. Raising the rate of VGEC from 34% to 39% could boost GVA by £436.2 million and create 6,291 jobs (including 760 development roles).
• Raise the proportion of qualifying expenditure: Increasing the proportion of qualifying expenditure from 80 per cent to 100 per cent could increase GVA by £731.7 million and generate 10,551 jobs (including 1,292 developers).
• Retain and boost prototype and content funding: The UK Games Fund’s Prototype Fund provides grants of up to £25,000 and the Content Fund provides grants of up to £150,000. The size of both grants should be increased to enable more studios to start-up, scale-up and grow. The potential for £ for £ match funding could be explored, to crowd in private sector investment.

Dr Richard Wilson OBE, CEO of TIGA, said: “The UK video games industry is the largest in Europe, has a highly skilled workforce, and previous TIGA research with the University of Portsmouth shows that the sector generates £12 billion in GVA.

“The same research shows that enhancements to VGEC could propel growth in the games industry and support growth in the wider economy.  For example, the introduction of a Games Growth Relief with a rate of 53 per cent on 80 per cent of qualifying costs for projects up to £15 million could create over 6,200 skilled jobs and increase GVA by £434 million. TIGA looks forward to working with industry partners and engaging with Government before the Autumn Budget to drive the UK games industry forward.”