Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of increasing the rate of Video Games Expenditure Credits for bigger budget games to 39% and removing the 80% expenditure cap.

The Government recognises the importance of the video games sector and the contribution it makes to growth. Support for video games companies is provided through the tax system and through funding.

Video Games Expenditure Credit (VGEC) provides a generous rate of relief of 34% on qualifying UK video games development costs. In 2023-24, £327 million of Corporation Tax was relieved through video game tax relief. VGEC is available to any company and project that meet the qualifying criteria, including larger budget games.

The Government is not currently considering increasing the generosity of the relief.