Publisher 'sabotaged UK games tax relief'

An effort to establish tax relief for UK game developers was derailed by a global publisher, according to a report.

The unnamed firm pressured the government and trade associations to drop tax breaks despite support from other studios, says Develop.

Insiders said that the publisher spoke to allies within parliament to ensure the deal would not go through, in the fear it would put other nations at a disadvantage.

The Labour government confirmed plans for tax breaks during its final Budget in May, but they were dropped during the emergency Budget earlier this week.

Trade association TIGA will continue to fight for tax breaks, appealing to publishers outside of the UK to use British talent for their games.

CEO Richard Wilson said: "We will not give up. And we ask publishers to join us."