In the latest budget report, Chancellor George Osborne has revealed that the "poorly targeted" plans for tax breaks for the videogames have been axed.

In the Conservative Government's first budget report since the May election, Chancellor of the Exchequer George Osborne has announced that plans for tax breaks for the videogames industry have been scrapped, with Mr. Osborne describing the tax breaks as "poorly targeted".

Labour's Alastair Darling highlighted videogames in March's budget as making a "valuable economic and cultural contribution to the UK" to a warm reception from the British videogames industry.

Mr. Osborne also announced a rise in VAT rates from 4th January 2011.