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UK govt set to reject tax breaks - report

Chancellor expected to ignore games industry's request for parity with film industry

The Chancellor of the Exchequer, Alistair Darling, is set to reject calls from the videogames industry in the UK for tax breaks, according to a report in The Guardian.

The games industry, which contributes more to the economy than the government-aided film industry, is likely to be again passed over as requests for parity with the movie business are ignored.

The UK national debt currently stands at over GBP 800 billion (USD 1.3 trillion), with borrowing this year likely to nudge GBP 175 billion (USD 285 billion), and some industry insiders have previously expressed their doubt to GamesIndustry.biz that against such a backdrop the government would be willing to extend state aid plans.

However, TIGA's Richard Wilson led a group of UK developers in taking a petition to Downing Street earlier this week, stating that tax relief for games businesses would result in benefits for the country.

"If it is right to provide tax relief for the UK film industry then it is also right to provide tax relief for the UK videogames sector," he said then. "The introduction of a Games Tax Relief would increase employment, investment and enable British videogame developers to better compete against those countries which have sort to attract this growing sector using tax incentives.

"If the UK intends to capitalise on this modern industry and echo the success of the UK film industry then I urge the Government to introduce a Games Tax Relief as a matter of urgency."

The government has already spent a huge amount of money bailing out the banking sector, with a recent National Audit Office report estimating the cost to the tax-payer of rescuing companies, including RBS, as around GBP 850 billion (USD 1.4 trillion) - with that bank now proposing to pay its staff around GBP 1.5 billion (USD 2.4 billion) in bonuses.

Earlier this week it was announced that up to GBP 10 million would be invested (USD 16 million) by the UK government and from European funds in two development Centres of Excellence in Dundee and Manchester.

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