I've recently had the chance to sit through a talk by Richard Wilson the CEO of TIGA at the Game-Based Learning 2010 event. TIGA is an association representing the UK games industry. Richard outlined a lot of the challenges faced by the domestic sector and welcomed a recent budget tax-relief for games industry by the current government (and backed by the other two major parties).
It is interesting to also read TIGA's thoughts on educational reforms to support the games development industry in the UK. These include the increase of expenditure in higher education, support of secondments for academics in games companies and the reduction of fees for priority undergrads.
You can read all of these in more detail here.
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