Rt Hon Rachel Reeves, the Chancellor of the Exchequer announced that the Office for Budget Responsibility (OBR) had cut its growth forecast for 2025 from 2 per cent to 1 per cent, while upgrading its forecasts for annual rates of growth for the four subsequent years.
The Chancellor made a range of announcements, including:
- The OBR’s prediction that the Government’s planning reforms will permanently raise the level of Gross Domestic Product.
- Reductions in the welfare budget to save £4.8 billion.
- Decreases in departmental spending growth from 1.3 per cent to 1.2 per cent above inflation.
- Tax avoidance measures.
- An increase in defence expenditure to 2.5 per cent of GDP.
- The inflation target of 2 per cent would be reached in 2027.
The Chancellor did not announce any tax changes.
Dr Richard Wilson OBE, TIGA CEO, said:
“The UK video games industry can support the Government’s ambition to grow the economy. Our sector provides high skilled employment in clusters across the UK which support export focused growth. The single most important measure that the Government can take to drive investment, employment and studio growth in the UK is to enhance the Video Games Expenditure Credit (VGEC). TIGA has proposed measures to amplify the impact of VGEC. We look forward to engaging with the Government during 2025 in the run up to the Autumn Budget.”
Jason Kingsley CBE, TIGA Chairman and CEO and Creative Director at Rebellion, said:
“TIGA’s proposals to reform VGEC will boost games development, start-ups, investment and export-oriented growth.By enhancing the generosity and accessibility of the VGEC, these reforms will make it easier for studios – particularly start-ups and small-to-medium-sized enterprises – to secure funding, manage costs, and invest in innovation. This will in turn accelerate the development of new titles, support job creation across the sector, and attract greater levels of domestic and international investment. Additionally, a more competitive VGEC regime will reinforce the UK’s position as a world leader in the creative industries and driving export-oriented growth.”
For more information on the Spring Statement, see:
- The Spring Statement document.
- The Chancellor’s speech in full (text).
- A link to re-watch the Chancellor’s speech in full.
Notes to Editors
TIGA is the trade association for the UK video games industry. TIGA’s vision is to make the UK the best place in the world to develop video games. To this end, TIGA:
- engages with policymakers to create an environment favourable to video games development;
- enhances education and skills through our accreditation programme, the TIGA Games Education Awardsand our education conference;
- promotes best practice through our membership services, including the TIGA Games Industry Awards;
- conducts primary research into the games sector, surveying hundreds of companies each year about the business environment, support policies and the health of the industry.
Get in touch:
Tel: 0845 468 2330
Email: info@tiga.org
Web: www.tiga.org
Twitter: www.twitter.com/tigamovement
Facebook: www.facebook.com/TIGAMovement
LinkedIn: http://www.linkedin.com/company/tiga
