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UK Games Development Records Sharpest Decline as TIGA Seeks Tax Credit Overhaul

The trade body links the slump to weak global sales alongside a funding squeeze for new studios.

Overview

  • TIGA’s Making Games in the UK report, published Tuesday, urges the government to lift the Video Games Expenditure Credit to 53% for projects up to £23.5 million.
  • The sector’s workforce fell from 28,516 to 27,347 between May 2024 and September 2025, a 4.5% drop and the first decline since 2011.
  • Company exits stayed high with 206 studios closing or leaving the industry during the period, while new start-ups fell from 281 to 137, a 15-year low.
  • Larger teams took the brunt of cuts with nearly 1,800 redundancies at studios of 15 or more staff, while micro and small studios grew headcount.
  • The credit, which now lets studios claim back 34% of 80% of qualifying development costs, would create about 6,952 jobs and yield a small net tax gain under TIGA’s modelling if raised.