UK video games industry trade association TIGA is calling on the UK Government to respond to what it calls the “sharpest recorded decline” in the country’s game development sector.
According to TIGA’s latest Making Games in the UK report, employment is falling at the fastest rate ever measured, and start-up activity has dropped to a 15-year low.
The report finds that in the year up to September 2025, the UK game development sector lost 1,537 jobs, resulting in a 4.5 drop – the fastest rate of decline ever recorded, and the first time since 2011 that the number has declined instead of grown.
Between May 2024 and September 2025 the total UK games development workforce dropped from 28,516 to 27,347, despite growth in the freelancing sector (which had more than 4,245 contractors).
TIGA also found that the number of new studios formed in the last year fell by over 30% for the third year in a row, and in total the number of UK game development companies now sits at 2,110, down from a peak of 2,175 in 2023.
During the survey period, 206 companies either closed down or exited the games industry – the second highest number on record, after 2024.
The association has called on the UK Government to enhance the Video Games Expenditure Credit (VGEC) policy, which currently lets companies claim back 34% on 80% of their total qualifying costs during development.
TIGA has called on the Government to expand the rate to 53% for projects up to £23.5 million. It estimates that this would create 6,952 jobs, meaning while the increased rate would cost His Majesty’s Revenue & Customs £135 million, it would generate £156.4 million in tax revenue.
It also asks the Government to consider changing the qualifying costs from 80% to 100%, which it says could generate 10,551 jobs including 1,292 developers.
In a statement, TIGA CEO Dr Richard Wilson OBE said: “The UK video games industry is the largest in Europe, has world-class talent, studios and universities, and previous TIGA research with the University of Portsmouth shows that the sector generates £12 billion in GVA.
“However, after 14 years of uninterrupted growth, we are now seeing a decline of unprecedented scale and speed. Without decisive policy intervention, the UK risks losing thousands of highly skilled jobs and ceding ground to better-supported international competitors. Enhancing the VGEC could create thousands of development jobs, improve studios’ financial strengths, enable the development of new IP and put the sector back on the path of growth.”
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