THE video gaming industry hit out last night after the Budget unexpectedly slashed tax credits promised by the previous government.
Former chancellor Alistair Darling had promised to move the sector into line with the film industry, which receives generous tax breaks, although the details had not been ironed out.
Osborne said: “We will not go ahead with the poorly-targeted tax relief for the video games industry. There will be a small reduction in the rates for capital allowances, which will remain broadly in line with economic depreciation.”
But industry figures accused the coalition of breaking promises and threatening the UK’s position as a market leader in the industry.
Richard Wilson, chief executive of game developer body Tiga, said the UK will lose out on investment, adding the government should be supporting the industry “with action, not words.”