A new report by the BFI shows how VGTR benefits the video games industry

By December 13, 2021 Press Releases

A new report by the BFI has shown Video Games Tax Relief (VGTR) has led to exceptional levels of growth, demonstrating its huge value to the UK Video Games Industry.

VGTR was introduced in 2014, following a lengthy industry campaign led by TIGA.

The report, commissioned by the British Film Institute, shows that in 2019 total development spend in the video games sector supported by VGTR was estimated at £860.4 million. Throughout all parts of the value chain, VGTR-supported spending directly generated 5,890 full-time equivalent (FTE) jobs in 2017, 6,190 in 2018 and 5,640 in 2019.

As shown by today’s report, VGTR has delivered huge value to the industry. Including indirect and induced impacts, the VGTR-supported sector generated 11,450 FTE jobs in 2017, 13,370 in 2018 and 14,570 in 2019. In terms of Gross value added (GVA), the sector generated £887.5 million in 2017, £1.02 billion in 2018 and £1.04 billion in 2019.

VGTR-supported development also generates strong returns for HM Treasury. The report found that for each pound of VGTR granted leveraged an additional £1.75 in economic activity for the UK economy in 2017, in 2018, it was £1.83 and in 2019 it was £1.72.

Dr Richard Wilson OBE, Chief Executive of TIGA, said:

“TIGA is delighted to see from the report commissioned by the BFI the significant impact that VGTR is having on the video games industry. VGTR has helped create thousands of jobs and enabled businesses to expand. The figures in today’s report highlight the importance of VGTR in supporting the UK’s expanding video games industry.

“The video games industry is a UK success story and VGTR has played a huge role in this development. The Government should increase the rate of VGTR to 32 per cent to ensure the future success of the industry, help the sector remain competitive globally and continue to attract foreign direct investment.

“The Government should also introduce TIGA’s Video Games Investment Fund (VGIF), which would provide pound-for-pound matched funding, up to a maximum of £500,000, for original game projects. The VGIF would create over 1,200 skilled development jobs and indirect jobs by 2025 and increase studios’ investment by £78 million.”





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