- Rachel Reeves and Sir Keir Starmer say they can balance books through growth
- They will need to put rocket fuel under the industries where the UK excels
- Video games industry does not receive attention it deserves
Ready for action: Sir Keir Starmer and Rachel Reeves
Rachel Reeves and Sir Keir Starmer say they can balance the national books without imposing even heavier taxes or cutting public spending: through growth.
If that is to go beyond mere wishful thinking, they will need to put rocket fuel under the industries where the UK excels.
These include the video games industry, which does not receive the attention it deserves. This is quite possibly because many politicians are to be found at the Royal Opera House or the theatre, rather than hunched over a console like some of England’s sub-octane footballers.
The video games industry is worth around £6billion to the economy and is the fastest growing part of the leisure and entertainment sector.
But insiders say there are only two people at the Department of Culture looking after it. Investment is minimal, with just £3m going into the Games Fund to support development as the most recent allocation. The neglect is even less defensible given the potential for levelling up and job creation.
Figures from industry association UK Interactive Entertainment (Ukie) found it supports 76,000 staff across the UK, with each role creating £113,000 of value, well above the average.
It is a vital part of the creative industries which generate up to 10pc of national income. The hotspots extend far from London with hubs in Dundee, previously known for jam and journalism, and the genteel midlands town of Leamington Spa. The UK video games market is the second largest in Europe and the sixth biggest in the world, so we punch above our weight.
The potential goes well beyond gaming itself. Ukie estimates around £760m from ‘spillover benefits’ into other industries including health, energy, advanced manufacturing, film and TV.
Ashmolean Museum in Oxford teamed up last year with games group Ubisoft. Its interpretation of the palace at Knossos from Assassin’s Creed Odyssey was on display along with archaeological finds in an exhibition on the myth of the Labyrinth.
The British Library’s ‘Fantasy’ exhibition is another case in point. Along with the books and manuscripts one would expect were games such as Fallen London, set in a dark alternative Victorian version of the capital.
As this visitor can attest, both these were stunning. If the next government wants to boost growth, ministers need to look at cleverly targeted incentives in the tax system – the UK has fallen behind rival countries in this respect – and also at investing in education. Senior figures are calling for a GCSE in digital creativity, which no doubt will annoy traditionalists but actually would help young people gain skills.
They also want to increase the UK Games Fund, which supports early stage games development, closer to levels in rival nations such as Germany.
The role of regulators is important – and controversial – too. The UK’s Competition and Markets Authority (CMA) was last year accused by Microsoft of damaging Britain’s prospects in the sector when it blocked the tech giant’s £60billion takeover of video game maker Activision Blizzard.
Microsoft huffed and puffed that legitimate concerns aired by the CMA about the deal were a ‘disservice to UK citizens who face increasingly dire economic prospects’ though it eventually agreed to changes that meant the takeover went ahead anyway.
Hyperbole aside, we will face dire prospects if the next government fails to support gaming and industries where we have real energy, innovation and talent. We will only win the game if we play to our strengths.