UK gov "considering" tax breaks – report

The UK government's on again off again relationship with game industry tax breaks could be on again after a fresh report claimed the Chancellor is preparing an "eye-catching" measure for the next Budget report.

The Sunday Times claimed over the weekend that George Osborne is "considering the introduction of tax breaks for the computer games industry as an eye-catching measure to put in his budget for growth".

The claim backs comments from Eidos life president Ian Livingstone, who told Eurogamer that Osborne offered his support for the UK game industry at a private meeting of senior media and entertainment executives earlier this month.

"The fact that we had representation at the meeting is an acknowledgment in itself that the videogames industry is being taken seriously and that it is important socially, culturally and economically to the UK," Livingstone said.

On the Chancellor's attitude towards the gaming sector, Livingstone was positive, adding: "There was certainly a great sense of his wanting to work with, and assist, the digital and creative industries to ensure they become a cornerstone of the UK economy, acknowledged and viewed as a valuable sector like the financial and pharmaceutical sectors."

The Chancellor's relationship with the games industry got off to a rocky start last June when he cancelled Labour's plans for games tax relief in his first Budget, calling the measure "poorly-targeted".

The Chancellor is due to report back on the Review in his Budget on 23rd March.