Context
The video games industry contributes £6 billion a year to the UK economy and supports 73,000 jobs. However, there are concerns about losing competitive edge due to lower tax relief rates compared to other countries like Ireland, France, Australia, and Canada.
Question
The hon. Member highlighted that the video games industry is a significant contributor to the UK economy but noted growing concerns over losing competitiveness compared to other nations. She asked what measures are being taken by the government to ensure the current tax relief regime is sufficient to maintain the UK's competitive edge in this sector.
Answer from The Secretary of State for Culture, Media and Sport (Lisa Nandy)
The hon. Lady will be aware of a global slowdown in the video games industry overall. The government has responded by providing additional support through measures such as the video games expenditure credit with £5.5 million allocated to the UK games fund next year. We regularly review our tax relief regime and are cognisant of the highly competitive nature of this sector, not only in video games but also in film, TV, and other areas. The government remains committed to providing comprehensive support for the industry's ecosystem so that it can continue to thrive.
Not addressed: The answer did not provide specific actions or commitments regarding competitive tax relief rates compared to international competitors.
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