Why we need to power up support for the UK video games industry

As Games Talks Live returns to Scotland tomorrow, industry professionals, developers, and ambitious start-ups will gather for three days of insight, inspiration, and collaboration. Such events are a vital catalyst for growth, helping to cultivate connections that drive forward the UK video games industry.

But while the scale of Games Talks Live underlines the sector’s strength, it also highlights a crucial truth: to fully realise its potential, the UK video games industry still needs more support.

The good news is that momentum is building. At the end of last year, the UK Government stepped up its ambitions to grow the economy with the appointment of an Industrial Strategy Advisory Council. This group of 16 business leaders will inform the development of a new industrial strategy aimed at driving long-term growth across key sectors – including the creative industries.

The UK is the largest hub for games development in Europe by headcount (Picture: Adobe)

That recognition is vital. The UK is the world’s third-largest exporter of creative services, and global demand is only set to grow. Video games, in particular, are a major opportunity. Research from TIGA, the trade association for the UK games industry, shows that more than 25,400 full-time developers and freelancers are employed across the UK – making it the largest hub for games development in Europe by headcount.

However, challenges persist. From international tax competition to difficulties accessing finance, and a rising burden on employers through National Insurance contributions, many UK developers face obstacles that could prevent them from scaling up.

The UK Games Fund has played a critical role in supporting early-stage studios, investing over £12 million in more than 450 companies since 2015. Its recent expansion, including new Content Awards offering grants of £50,000-£150,000, and a £40m injection announced for its 10th anniversary, is welcome news.

But it’s not enough to keep pace internationally. Other countries are going further—France offers up to €200,000 in games development grants, while Germany’s €70 million fund covers up to 50 per cent of project costs. The UK must match this ambition by further enhancing the Games Fund and improving access to growth capital.

Tax incentives are another key lever. The new Video Games Expenditure Credit (VGEC) helps reduce development costs and stimulate investment. But making VGEC more generous – particularly for smaller budget games – could fuel greater growth, attract international investment, and help studios remain independent for longer.

Education and talent pipelines are also central. The UK industry draws on graduates and experienced professionals alike, with strong links between studios and academia. TIGA’s course accreditation programme and wider collaborations are a strength – but continued support for BTECs and university spinouts is essential to sustaining a skilled workforce.

More business training could also help founders and managers sharpen their commercial edge. TIGA’s proposal for a National Games Accelerator (NGA) would support early-stage studios with entrepreneurial training, business planning, and investor readiness – giving them the tools to scale and thrive.

Ultimately, the UK games sector offers high-skilled employment in export-driven clusters across the country. With targeted investment, smart policy, and a supportive ecosystem, it can unlock even greater economic value. Events such as Games Talks Live showcase the talent and ambition that underpins the sector. Now it’s time to match that talent and ambition with opportunity.

Andrew McMillan, partner and Head of Innovation Taxes, Johnston Carmichael, Co-written by Dr Richard Wilson, CEO, TIGA