Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to review the Video Games Expenditure Credit to support smaller video game studios.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government recognises the importance of the creative industries, including the key role they play in driving economic growth, and the video games sector is specifically supported through the tax system and through funding.

Video games companies benefit from the Video Games Expenditure Credit (VGEC), which provides a generous tax credit of 34 per cent on UK video games development costs. In 2023-24, £327 million of Corporation Tax was relieved through video game tax relief.

VGEC makes no distinction between large and small game studios. Any video game production company can qualify as long as it meets the eligibility criteria. The Department for Culture, Media and Sport has committed to a new £30 million Games Growth Package over three years to back the next generation of start‑up games studios and talent, and drive inward investment in the sector.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of increasing the rate of Video Games Expenditure Credits for bigger budget games to 39% and removing the 80% expenditure cap.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government recognises the importance of the video games sector and the contribution it makes to growth. Support for video games companies is provided through the tax system and through funding.

Video Games Expenditure Credit (VGEC) provides a generous rate of relief of 34% on qualifying UK video games development costs. In 2023-24, £327 million of Corporation Tax was relieved through video game tax relief. VGEC is available to any company and project that meet the qualifying criteria, including larger budget games.

The Government is not currently considering increasing the generosity of the relief.

Question to the Department for Transport:

To ask the Secretary of State for Transport, whether she has considered the potential merits of including the York Area Capacity Scheme works in the TransPennine Route Upgrade.

Answered by Simon Lightwood - Parliamentary Under-Secretary (Department for Transport)

A decision to pause activity on the York Area Capacity and Performance Project was taken at the Spending Review. The decision was only taken after appropriate consideration of the project’s benefits and its interdependencies with other programmes of activity. Work is now underway with Network Rail and industry colleagues to develop a sustainable long-term strategy for the area.

There are currently no plans to include this paused scheme as part of the TransPennine Route Upgrade Programme.

Question to the Department for Transport:

To ask the Secretary of State for Transport, whether an impact assessment was made before the suspension of the York Area Capacity Scheme.

Answered by Simon Lightwood - Parliamentary Under-Secretary (Department for Transport)

The decision taken at the Spending Review to pause activity on the York Area Capacity and Performance project taken after appropriate consideration of the project’s benefits and its interdependencies with other programmes of activity. Work is now underway with Network Rail and industry colleagues to develop a sustainable long-term strategy for the area.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment has been made of the impact of the train capacity through York train station as a result of the TransPennine Route Upgrade on the level of timeliness at Skelton Junction.

Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)

Train capacity through York Station is the subject of the York Area Capacity and Performance Project which was paused at the Spending Review. The scope of the TransPennine Route Upgrade Programme excludes York Station itself. Network Rail are undertaking further timetabling analysis and modelling as part of continuing train planning activity including in the Skelton Junction area.

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