The UK Chancellor George Osborne has announced plans to to scrap the research and development tax relief scheme used by the UK video gaming industry.
The announcement has not been well received by the gaming industry, which had been promised significant tax rebates by representatives of the Conservative Party prior to the election.
Conservative Culture Minister Ed Vaizey had intimated that the party would maintain the existing tax rebates and offer whatever help it could to the UK gaming industry in order to compete with other successful games developers around the world.
Former Labour Chancellor Alistair Darling had proposed to offer R&D tax relief for the gaming industry in the Labour Government's final budget.
Osborne scrapped the tax rebates from his emergency budget, describing Darling's proposal as "poorly targeted".
Speaking to The Telegraph, Michael Rawlinson, the Director General of Entertainment and Leisure Software Publishers Association (ELSPA), said: “It's a terrible blow. Our industry will be rightly puzzled as to how tax breaks can be lauded before an election, only to be seen as ‘poorly targeted’ and scrapped just six weeks later.”