"One of the biggest game companies in the world" has allegedly pressured the UK's coalition Government into abandoning tax breaks for the games industry.

On Tuesday afternoon, Chancellor of the Exchequer George Osborne confirmed in the UK coalition government's first budget report that planned tax breaks for the British videogames industry were abandoned, described by Mr. Osborne as being "poorly targeted".

Today, Develop magazine revealed that one of the biggest game publishers in the world spoke to "well-placed parliament allies" in order to bring an end to the planned legislation, which the previous Labour Government had attempted to introduce prior to the general election in May.

According to Develop's insider sources, the tax breaks were seen by the unnamed publisher as giving a potential advantage to the UK over other nations. Canada, Australia and France all offer tax relief to games developers, and the UK faces a "brain drain" of industry talent due to international competition.