Gaming tax breaks axed in UK Budget

The government has announced that tax relief will not be provided for the UK games industry.

As part of today's Budget, chancellor George Osborne confirmed the decision despite promises from election campaigners.

Developer association TIGA's chairman Dr Richard Wilson warned that the country faces additional job losses and reduced inward investment unless a similar incentive is put in place, according to VG247.

"The coalition government has broken pre-election pledges made by the Conservative Party and by the Liberal Democrats to support and introduce Games Tax Relief," Wilson said in a statement.

"Unless the coalition government introduces Games Tax Relief or a similar fiscal measure, then the UK will forfeit millions of pounds in inward investment, jobs will be lost and we will cease to be a leading developer of video games."

TIGA's Jason Kingsley added: "TIGA has made a real impact in getting Games Tax Relief considered at the highest political level. It is hugely disappointing that the coalition government has decided not to introduce this tax measure, especially given the existence of tax relief for other sectors of the economy.

"However, TIGA will continue to lead the campaign for Games Tax Relief in the months ahead. Games Tax Relief or a similar fiscal measure is the industry's top priority."

Tax relief was promised in the previous Budget back in March.