Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the report published on 9 February by the Association for UK Interactive Entertainment, Business case for an enhanced video games expenditure credit.

The Government recognises the importance of the UK’s video games sector and the key role it plays in driving economic growth. As part of our modern Industrial Strategy, we are developing a creative industries sector plan with business, local leaders, and sector experts.

The Government supports the video games sector through the tax system and through funding. Video games companies already 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 addition, companies may benefit from the £5.5 million UK Games Fund for 2025/26, which helps high-potential start-ups scale-up.

When considering new tax reliefs, the Government has to balance a wide range of factors, including the fiscal position and complexity of the tax system. The Government keeps the tax system under review.