The Con-Dem coalition's Culture Minister Ed Vaisey has told the UK gaming industry not to expect any form of tax relief in the foreseeable future.
UK games industry trade body Tiga has been lobbying parliament for an even playing field for years, citing other countries like Canada that give game developers financial incentives and are widely thought to be poaching some of the UK's top gaming talent.
The previous Labour Government had promised tax breaks in its final budget, but the proposals were called 'poorly targeted' by the incoming alliance and have now been shelved for up to four years according to Gamespot UK.
Speaking to the Culture, Media and Sport select committee, Vaisey said that no tax breaks would be forthcoming for several years and that Tiga should "look at other creative options".
The number of people working in the UK gaming industry has declined by nine per cent in the last two years whilst Canada's head-count has risen by 33 per cent.