Video games body calls for tax breaks

Video games body Tiga has criticised the Government's argument against a tax relief for the industry as "increasingly threadbare", after a senior Treasury official appeared to contradict the official line.

George Osborne dropped plans for a video game industry tax relief in the June Budget, saying it was "poorly targeted". Yet this month Edward Troup, the managing director of budget, tax and welfare at the Treasury, told a Scottish Affairs Select Committee: "I'm not sure I would say it was poorly targeted," adding: "It was perfectly designable if we had continued with it."

Tiga had predicted that such a tax break would create 3,000 jobs but now fears there will be an exodus to jurisdictions that offer generous incentives, especially Canada. Experts say UK developers have already frozen domestic expansion, and some have instead looked abroad to open new offices. Before the election, the culture minister Ed Vaizey had pledged to introduce a tax relief similar to that offered to the film industry.