Update
As part of today's announced budget, the implementation of tax relief for the UK industry is on hold until the EU Commission has approved the cultural test that studios must pass in order to get funding.
"We were prepared for this as it was always a possibility when establishing an entirely new European tax scheme, especially as games are so different to film and TV," said UKIE's Dr Jo Twist.
"We are confident of the government's commitment to implementing the tax breaks as soon as possible. But we hope that the delay will be a short one and shall now be doing everything that we can, working with UK government, the European Commission and TIGA, to get the state aid approval that we need as soon as possible. They absolutely will still happen."
Original Story
Chancellor George Osborne delivered the latest budget today, and it includes good news for the UK gaming industry.
It appears that the Government is planning to legislate for Games tax relief in the current finance bill, which could prove very helpful for developers and publishers based in the UK.
There's also to be the introduction of a £15 million digital competition via the Technology Strategy Board and an £8 million increase in the Skills Investment Fund.
Dr Richard Wilson, TIGA (the trade association representing the UK games industry) CEO, had this to say about the announcement:
"Although Games Tax Relief has not yet received State Aid clearance from the EU Commission, TIGA has been assured that the UK Government is committed to this Relief, will be legislating for this Relief in the Finance Bill and will deliver this Relief.
Games Tax Relief is vitally important because its introduction will enable the UK to compete on a level playing field against our overseas competitors who already have tax breaks. Games Tax Relief will also power investment and job creation and address the market failure in the under-production of culturally British video games.
TIGA stands ready to work with the UK Government and EU Commission to accelerate the introduction of Games Tax Relief. Businesses need to see the measure introduced as soon as possible to aid commercial planning.
The increase in the budget for the Skills Investment Fund and the new digital competition will strengthen the competitiveness of the UK games industry. Together with Games Tax Relief they make a helpful hat trick of policy measures."