Video Games Industry: Gross Value Added

1. If she will make an assessment of recent trends in the gross value added of the video games industry.

We recognise the recent challenges for the industry, and we are continuing our support with the video games expenditure credit, providing £5.5 million for the UK games fund next year. The UK is home to some amazing companies and developers, and we want to continue to support them as they grow and develop world-leading games.

The Secretary of State is right: the video games industry is a great British success story. It contributes £6 billion a year to our economy and 73,000 jobs, many of which are outside London, from Dundee to Brighton—it really is right across our nations. However, there are growing concerns that the UK is losing its competitive edge. Our tax relief rates have dropped below those of Ireland, France, Australia and Canada—all our biggest competitors in this sector. What is the Secretary of State doing to really push the Treasury to ensure that our video games expenditure credits and everything else are up to date so that we retain our competitive edge in this vital sector?

The hon. Lady will know that there has been a global slowdown in the video games industry as a whole. That is one of the reasons why we have stepped up to provide additional support. We always keep our tax relief regime under review and we are aware that this is an intensely competitive area—not just in video games, but in film, TV and other areas. The video games industry is part of a wider ecosystem that needs support, and we are determined to provide the fullest support we can so that our industry can thrive.