Trade associations in the UK are urging the introduction of a new "growth" tax relief aimed at expanding studios, which they believe will propel the industry's development for years ahead

The gaming sector in the UK is urging government officials to adopt the new Games Growth Relief tax initiative to bolster nationwide development efforts.

An open letter, endorsed by groups such as Ukie and TIGA, pushes for the establishment of a Games Growth Relief for ventures up to $20 million (£15 million). This initiative is envisioned as a "targeted intervention" to fulfill these goals.

The proposal asserts that such a plan could yield substantial financial returns and generate "thousands of high-quality jobs." This follows the government's recent Creative Industries Sector Plan rollout.

The letter explains that this relief specifically aids British studios' growth phase, helping them evolve from promising small-medium enterprises (SMEs) into sustainable, competitive entities on a global scale.

Ukie and TIGA's analysis indicates that introducing Games Growth Relief could contribute up to £482 million annually in gross value added (GVA) to the UK economy and create thousands of high-quality positions in areas from Dundee to Brighton and Guildford to Manchester.

Earlier this year, TIGA praised the UK Chancellor's spending review for its focus on funding the creative sectors, deeming it "encouraging." The organization recently advocated for enhanced tax credit measures to further support the gaming industry by bolstering the Video Games Expenditure Credit.