RUTH SUNDERLAND: Can the next government win the economic growth game?

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 goes beyond mere wishful thinking, they will have to throw rocket fuel at the industries in which Britain excels.

This includes the video games industry, which does not receive the attention it deserves. This is entirely possible as many politicians can 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 £6 billion 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 Ministry of Culture who take care of it. Investment is minimal, with just £3 million going to the Games Fund to support development as the latest allocation. This neglect is even less defensible given the potential for leveling up and job creation.

Figures from industry association UK Interactive Entertainment (Ukie) show it supports 76,000 employees in the UK, with each role creating £113,000 of value, well above average.

It is an essential part of the creative industry, which generates up to 10% of national income. The hotspots extend well beyond London, with hubs in Dundee, formerly known for its jam and journalism, and the chic midland town of Leamington Spa. The UK video games market is the second largest in Europe and the sixth largest in the world, so we punch above our weight.

The potential goes far beyond gaming itself. Ukie estimates that around £760 million in ‘spillover benefits’ will flow to other sectors, including healthcare, energy, advanced manufacturing, film and TV.

Ashmolean Museum in Oxford collaborated with games group Ubisoft last year. The interpretation of the palace at Knossos from Assassin’s Creed Odyssey was on display together with archaeological finds in an exhibition about the myth of the Labyrinth.

The British Library’s ‘Fantasy’ exhibition is another example of this. As well as the books and manuscripts you’d expect, there were games like Fallen London, set in a dark, alternate Victorian version of the capital.

As this visitor can attest, both of these were breathtaking. If the next government wants to boost growth, ministers must look at smartly targeted stimulus in the tax system – Britain has fallen behind rival countries in this regard – as well as investment in education. Senior figures are calling for a GCSE in digital creativity, which will no doubt irritate traditionalists but would actually help young people gain skills.

They also want to bring the UK Games Fund, which supports early-stage game development, closer to the level of rival countries such as Germany.

The role of regulators is also important – and controversial. The UK Competition and Markets Authority (CMA) was accused by Microsoft last year of damaging the UK’s prospects in the sector when it blocked the tech giant’s £60 billion takeover of video game maker Activision Blizzard.

Microsoft huffed and puffed that the CMA’s legitimate concerns about the deal were a “disservice to British citizens facing increasingly dire economic prospects”, although it ultimately agreed to changes that meant the takeover went ahead anyway.

Hyperbole aside, we will face a bleak outlook if the next administration fails to support gaming and industries where we have real energy, innovation and talent. We can only win the match if we play to our strengths.