UK Chancellor of the Exchequer George Osborne has claimed the Government is committed to supporting the games industry with tax breaks.

Financial relief is set to be delivered to UK devs as part of a wider sweetener for the country's creative industries, with Osborne branding them the "jewel in Britain's crown."

Speaking at BAFTA in London this morning at a launch event for tax relief across film, TV and games, Osborne told 200 attendees that it's a logical move for the Government to support the creative industries in this manner.

Money matters

"The Government's industrial strategy is simple: we want to identify Britain’s strengths and reinforce them, so that Britain can compete in the modern global economy," said Osborne.

"Our creative industries are one of the jewels in Britain’s crown and are just the kind of industry I want to back, which is why we are introducing these new tax breaks to help and promote production in the UK."

Also on hand was Minister for Culture, Communications and Creative Industries Ed Vaizey, who claimed the creative industries as a whole are worth more than £35 billion a year to the UK.

Nevertheless, it appears the UK Government has a fight on its hands if it wants to see Games Tax Relief through.

European issue

While similar methods have previously been deployed in France, the European Commission is yet to approve the measures, having announced an "in-depth investigation" into whether they're needed.

The fear is, the EC may believe the UK games industry is performing strong enough as it, and such tax breaks may give it an unfair advantage over studios operating across the rest of the EU.

"At this stage, the Commission doubts that the aid is necessary," said the EC, with the Commission's VP in charge of competition policy Joaquín Almunia adding that "such subsidies could even distort competition."

UK trade bodies have been quick to react to the EC's stance, with TIGA CEO Dr. Richard Wilson telling PocketGamer.biz that he was "disappointed, but not surprised" by the decision.

"I am convinced that TIGA and the UK Government can allay the EU Commission's concerns," he added.

Working together

UKIE CEO Dr. Jo Twist agreed, added that tax breaks could help UK devs "lead the pack" on a global basis.

"We are confident that the Commission realise the benefits of a thriving games industry and the positive knock-on effects for a converged digital economy – in job creation in the games, animation, music, storytelling, design and software sectors," added Twist.

"We'll be responding to the EC investigation thoroughly and working with TIGA to make sure we present as strong and united a case on this vital issue as possible."

[source: Televisual]