The tax refund for the games has helped the British economy grow by £2.4billion since 2014
The launch of tax breaks for gaming companies has had a good effect on the UK economy. The consulting firm Games Investor Consulting (GIC) estimated that their contribution to the country's economic growth amounted to £2.4 billion.
Recall that in 2014, the Video Games Tax Relief (VGTR) program was launched in the UK. As part of it, the authorities compensate up to 20% of the cost of game development.
GIC noted that it cost the government £1.1 billion to stimulate the economy through benefits. This amount was received by the developers as a tax refund in the period from 2014 to 2022.
According to GIC, it was thanks to tax incentives that the British gaming industry managed to overcome the crisis. Before the announcement of VGTR in 2012, studios were actively closing in the country — in four years more than 200 companies announced their dissolution. After it became known about the upcoming launch of VGTR, the situation began to change. Since 2012, gaming companies have spent £1.2 billion on hiring employees, as a result of which the number of the sector has grown from 9 thousand to 24 thousand people.
