As Labour's last term in parliament drew to a close before the elections, they pledged to introduce tax breaks for the gaming industry after a two year struggle in its last budget. With consent and support by both the Liberal Democrats and the Conservative parties, it looked to shine a promising light on an overlooked industry.
However, since the election of the coalition government, they have set about scrapping many schemes; the tax break being one of them, in their first 'emergency' budget. These changes are also included within the new 2.5% increase in VAT and freezing public sector pay.
It sounds simple to get the country back on its feet, but there have been reports that this may not be all that happened behind the scenes. Apparently one of the biggest game companies in the world exerted pressure on the UK Government and Trade Associates to abandon plans for the UK tax breaks. Whilst many studios fought for the right, one publisher counterbalanced the bid by speaking to well-placed allies within the coalition. Its reasons for doing this was that the company felt that it would of given the UK an unfair advantage over other nations within the same industry.
What do you think to tax breaks for the gaming industry within the UK? And was the coalition's decision right despite the intervention of another major company?