The Government has answered a series of questions about the video games industry.
Jack Brereton MP for Stoke-on-Trent South asked the Minister what recent estimate he has made of the contribution to the economic growth of the video games industry, and what steps the Government is taking to support the UK video games industry. Julia Lopez, Minister of State at the Department for Digital, Culture, Media and Sport said the Government is committed to supporting the growth of the UK’s video games sector and recognises that video games bring economic, cultural and social benefits across the UK. Jack Brereton MP also asked what recent assessment the Government has made of the contribution of Video Games Tax Relief to (a) jobs, (b) investment and (c) productivity in the UK video games sector; and what plans he has to increase video games tax relief from 25 per cent to 32 per cent in April 2023.
Matt Western MP for Warwick and Leamington also asked the Secretary of State for Digital, Culture, Media and Sport, what assessment she has made of the potential merits of a video games investment fund and what assessment the Government has made of the potential merits of increasing video games tax relief from 25 per cent to 32 per cent. Matt Western NP also asked the Secretary of State for Education, what assessment he has made of the implications for his policies of the impact of removing funding for BTECs for young people on people wishing to pursue a career in the video games industry.
Please find all the questions and answers below.
Video Games: Investment
Department for Digital, Culture, Media and Sport
24 October 2022
Matt Western (Labour – Warwick and Leamington): To ask the Secretary of State Digital, Culture, Media and Sport, what assessment she has made of the potential merits of a video games investment fund.
Julia Lopez – Minister of State (Department for Digital, Culture, Media and Sport): The Government is committed to supporting the growth of the UK’s games sector. As part of a wider package to support the growth of the creative industries, the Government has committed to an £8 million expansion of the UK Games Fund. The UK Games Fund will continue to provide valuable support to early-stage games development and talented graduates throughout the UK. In addition, the Video Games Tax Relief continues to make the UK one of the leading destinations in the world for making video games.
We are not seeking to take forward a proposal for a new Video Games Investment Fund. We welcome continued discussions with the games industry on how best to support a thriving UK games sector.
BTEC Qualifications: Finance
Department for Education
24 October 2022
Matt Western (Labour – Warwick and Leamington) To ask the Secretary of State for Education, what assessment he has made of the implications for his policies of the impact of removing funding for BTECs for young people on people wishing to pursue a career in the video games industry.
Andrea Jenkyns – Parliamentary Under-Secretary (Department for Education): The department is reforming the post-16 qualifications system to provide clearer choices for students and to put A levels and T Levels at the heart of 16-19 study. Qualifications such as BTECs will continue to play an important role for 16 to 19-year-olds and adults. For students, this includes taking these qualifications in mixed programmes alongside A levels, or as an alternative programme in areas that may be less well-served by A levels or T Levels.
On 14 October, the department published a list of qualifications which will have funding removed from 2024 due to overlapping with a wave 1 or 2 T Level. We will publish the provisional list of qualifications which overlap with a wave 3 or 4 T Level in spring 2023. These qualifications, if not successfully appealed, will have funding removed from August 2025.
The updated impact assessment published alongside the response to the second stage consultation can be accessed at: https://www.gov.uk/government/publications/review-of-post-16-qualifications-at-level-3-in-england–2. The assessment looked at the potential impact of the review on students, but it did not look specifically at those looking to pursue a career in the video games industry.
Video Games: Tax Allowances
HM Treasury
24 October 2022
Jack Brereton (Conservative – Stoke-on-Trent South): To ask the Chancellor of the Exchequer, what recent assessment he has made of the contribution of Video Games Tax Relief to (a) jobs, (b) investment and (c) productivity in the UK video games sector; and what plans he has to increase video games tax relief from 25 per cent to 32 per cent in April 2023.
Felicity Buchan – Exchequer Secretary (HM Treasury): The Government recognises the valuable economic and cultural contribution of the video games industry. The Video Games Tax Relief (VGTR) has supported £5.1 billion of UK expenditure on 1,940 games since its introduction in 2014.
The Government keeps all tax reliefs under review. Any externally commissioned evaluation will be published in the usual way, in line with the Government Social Research Publication Protocol.
The Government regularly receives proposals for changes to tax reliefs. When considering changes, the Government must ensure they provide support to businesses in a fair way and that taxpayer money is effectively targeted. An uplift in the rate of VGTR is not currently under consideration.
Video Games: Tax Allowances
HM Treasury
24 October 2022
Matt Western (Labour – Warwick and Leamington): To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits increasing video games tax relief from 25 per cent to 32 per cent.
Felicity Buchan – Exchequer Secretary (HM Treasury): The Government recognises the valuable economic and cultural contribution of the video games industry. The Video Games Tax Relief (VGTR) has supported £5.1 billion of UK expenditure on 1,940 games since its introduction in 2014.
The Government keeps all tax reliefs under review. Any externally commissioned evaluation will be published in the usual way, in line with the Government Social Research Publication Protocol.
The Government regularly receives proposals for changes to tax reliefs. When considering changes, the Government must ensure they provide support to businesses in a fair way and that taxpayer money is effectively targeted. An uplift in the rate of VGTR is not currently under consideration.