What The New UK Government’s £30M Games Funding Means For Scotland

This week’s announcement of a £30 million Games Growth Package by the UK Government marks a significant moment of recognition for the interactive sector. With the doubling of the UK Games Fund (UKGF) to £28.5 million and the introduction of grants up to £250,000, Westminster has finally acknowledged the importance (and potential) of the £8.8 billion consumer market. However, while this capital injection is a vital down payment for de-risking new intellectual property, it is not a complete strategy for the future of the Scottish supercluster.

For Scotland, this news has a deep resonance. The UK Games Fund was born in Dundee, emerging from the Dare to be Digital programme at Abertay University. It is a Scottish success story that has been exported to the rest of the UK. Yet, the physical location of the fund in Dundee does not offer an inherent advantage to Scottish studios. Without a formalised national strategy to interface with this capital, Scotland risks acting as a landlord for a UK asset rather than a primary beneficiary of its expansion.

The limitation of the DCMS package lies in its ‘industry’ focus. As Nick Poole, CEO of UKIE, noted: “Targeted support across the development pipeline will help studios start, scale and stay globally competitive.” This vision remains firmly trapped within the consumer games market, which remains hugely volatile and increasingly competitive. It focuses on the entertainment side of games, while ignoring the wider ecosystem of interactive technology. It won’t address the sectoral isolation that keeps games expertise separated from the rest of the Scottish economy.

Please don’t misunderstand. The money is hugely valuable – and very welcome. However, there are a number of challenges facing the games sector, which the funding alone cannot solve. The industry is currently facing an oversupply of graduates, a lack of entry-level positions, and ongoing global market volatility. Throwing capital at studios without providing the commercial scaffolding required to build sustainable businesses is a high-risk approach. This is why the National Games Action Plan is essential. While the UK Government funding provides the fuel, the Action Plan provides the road, and the guidebook for the journey.

Projects like the Hello World! Startup Summit have already proven that we can transform a vulnerable talent pool into a resilient wave of new founders. By providing dedicated, games-specific business support alongside funding, we ensure that studios do not just survive a grant period but scale into the kind of high-growth companies Scotland needs.

With the Scottish Parliament now in recess and the election period beginning, the next administration faces a clear challenge. The UK Government has set the pace with this Growth Package. Scotland must now build upon it. While this new funding could be used to match-fund successful Scottish UKGF applications, the most critical single action remains strategic alignment – recognition of games as a key sector for Scotland’s future, building understanding of the whole games ecosystem across government and appointing a Chief Games Officer (CGO).

A CGO would provide the accountability and leadership required to elevate games across every portfolio of the Scottish Government. This role would enable the country to engage more successfully with UK-level funding while ensuring that our £151,382 GVA-per-head productivity is leveraged across areas including healthcare, energy, fintech, data, tech and education.

The goal is to establish a £1 billion supercluster by 2030. The DCMS announcement is a very welcome boost, but it does not remove the fundamental structural issues facing the sector. To move beyond the silo and achieve true national impact, the incoming Scottish Government must implement the Games Action Plan. The capital is now on the table – it is time for the strategic delivery to begin and for games to become an integral part of Scotland’s digital future.