AAfter a long debate the UK video game industry has been awarded more tax credits to encourage developers to work there.

Yesterday's budget gave the games industry a welcome relief in the UK as it was announced that the video game industry would get more tax credits to help encourage growth in the industry for the UK. While it is not the tax break that TIGA had been campaigning for at least it is a step in the right direction.

The new deal will be worth around �7 million to the video games industry in the UK according to the BBC. It will allow developers to hire more staff and invest in research and development.

The previous Labour government intended to introduce tax breaks for the video game industry but when the coalition government came into power they removed it from their emergency budget last year. Dr Richard Wilson, TIGA chief executive, has been a key campaigner for a tax break in the industry and spoke yesterday about the decision.

Dr. Wilson is happy that the changes implemented will have a positive effect on the industry, claiming that the R&D tax credits will "deliver 60% to 70% more value to games studios than the current tax credit regime." It is not all good news however. He adds: "Our key competitors have tax breaks for games production. The UK does not."

"Failure to deliver TIGA's Games Tax Relief is a dismal decision that displays a complete lack of imagination and one which will leave the UK video games industry swimming against the tide internationally."

TIGA had hoped that tax relief would help the industry grow, as it has done when introduced in other countries, and in turn help out the country. Whether or not they will be introduced in the future remains to be seen.