A UK-wide games industry survey states that 31 percent of British developers are having problems with the Government’s tax policies.

As well as this, 41 percent of those surveyed say that generous subsidy policies outside of the UK are becoming a cause for concern, as Britain looks set to sink further down the global development table.

The survey, conducted by games industry interest group Tiga, questioned 100 CEOs and managing directors of UK game businesses. The survey results illustrate that the UK development sector is “highly experienced, well qualified and export driven,” according to Tiga.

85 percent of those surveyed wanted to see tax breaks for production, while 77 percent called for “more liberal” R&D tax credits. 51 percent wanted lower corporation tax, while half of those surveyed also called for lower rates of national insurance contributions.

Following the release of the report, Tiga CEO Dr Richard Wilson said: "The UK games development industry is competing with one hand tied behind its back. Competitor countries from Canada and the USA to France and South Korea are benefiting from government support, most notably tax breaks. This puts the UK at an immediate disadvantage."

Wilson has also called for the Government to introduce a 20 percent tax break for game production, which he calculates would allow an additional £220 million to be invested in the industry, while at the same time could create some 1,600 jobs over five years. He measured this proposal with a warning that, if the government does nothing, investment in the industry could drop by up to £180 million “and nearly 1,700 jobs could be lost over the same five year period.”

Half of the developers surveyed had been in the industry for six years or more, while 60 percent were qualified to degree level. On average, 46 percent of a developers’ turnover is generated through the export of games.

“The UK games development sector is an industry of the future,” added Wilson. “It is a highly skilled, knowledge-based industry that has huge potential. However, the significant support overseas governments give to their games industries puts the UK games industry at a severe competitive disadvantage.”

“This factor, coupled with difficulties in sourcing finance and skill shortages, are currently barriers to growth and must be addressed."