Osborne announces tax breaks for UK games industry

UK chancellor George Osborne has just announced tax breaks for the UK games development industry as part of his ongoing budget.

"Today, we turn Britian into Europe's technology centre. We will start with digital content," Osborne said in his currently ongoing speech.

"The film tax credit, protected in our spending review, helps generate over a £1 billion of film production investment in the UK last year alone.

"Today, I'm announcing our intention to introduce similar schemes for the videogames, animation and high-end TV production industries."

Osborne's predecessor, Labour's Alistair Darling, announced similar plans in 2010, but was thrown out by the Conservative in an emergency budget when the Tory/Lib Dem collation came to power a few months later.

No details have emerged as yet as to what the breaks will entail, however.

The breaks themselves will be introduced by April 2013, but are subject to approval from the State.

UK trade body TIGA has already reacted to the news.

"This is a brilliant decision by the Government and terrific news for the UK video games industry. It is also a decisive victory won by TIGA through audacity, determination and endurance," said CEO Richard Wilson.

"Like a boxer knocked down by his opponent, we refused to accept defeat and kept getting back in the ring. This victory will benefit not just the UK games development and digital publishing sector but also the wider UK economy."