The UK government has announced a hefty £30 million funding package aimed at turning Britain into a global hotspot for video game development. This “Games Growth Package” will be handed out over three years (2026–2029) and comes with beefed-up tax breaks for companies working on games in the UK.
The move is part of a wider £380 million investment in the UK’s creative industries, showing just how much gaming now means to the British economy. Money will be distributed via the UK Games Fund, which usually offers grants of up to £30,000 for early-stage projects and prototypes.
“We are one of the world’s largest exporters of video games,” the government said, pointing out that hit titles like Grand Theft Auto and PowerWash Simulator are made across the UK, with nearly 80% of developers based outside London.
This spread across the country is a big deal, with major game development hubs in Edinburgh, Guildford, Leamington Spa, Cambridge, Bristol, and Manchester. The funding is meant to beef up these established hubs and help new ones pop up.
The package also brings in a new Video Games Industry Council made up of industry veterans and policymakers to offer advice and keep things on track. This council will help figure out how the cash gets handed out and make sure it really helps developers.
The UK has some stiff rivalry from countries giving out generous perks to game studios. Canada (especially Quebec), France, and Germany all have big funding programs. Germany, for instance, just raised its games budget to €88 million for 2024 and €125 million for 2025, putting the pressure on the UK to keep up.
Even with big-name studios like Rockstar North (Grand Theft Auto), Creative Assembly (Total War), Codemasters (F1 series), and Rare (Sea of Thieves), the UK industry hasn’t had it easy. There have been layoffs, studios shutting down, rising costs, and it’s gotten tougher for smaller teams to find investors.
The Video Games Tax Relief, running since 2014, gives studios cash rebates on certain production costs. The new package boosts these perks even more, so the UK could become a more tempting home for both local and overseas game companies working out where to set up shop.
While the funding is open to the whole sector, there’s a real focus on backing new talent and startups. Still, to apply, you usually need a set business structure, some employees on the books, and a bit of investment already—so the tiniest startups might still find it tricky to get help.
