The Labour government says it is “looking at introducing further tax breaks” for the UK games industry.

The government’s new culture secretary, Ben Bradshaw, raised the possibility in a House of Commons discussion about the interim Digital Britain report that was published in January 2009.

“Will my hon. Friend ensure that Digital Britain takes heed of the interests of the very successful UK videogames industry?” asked Labour MP Tom Watson, according to a transcript of the discussion.

“Videogames make their players think, and they challenge them and make them focus, and many people in Britain believe that a medium that does that should be elevated to an art form. I hope my hon. Friend's Department gives the videogames industry a similar status to that of the UK music and film industries.”

Bradshaw replied: “I assure my hon. Friend that we do recognise the importance of the videogames industry to the British economy. Research and development tax credits are available for the industry, and we are looking at introducing further tax breaks. We will deal with the issue of classification, and other announcements that will, I think, please my hon. Friend will form part of the final report.”

Meanwhile, with the Conservative party’s Creative Industries Review Group currently conducting its review of the creative industries, Tiga CEO Richard Wilson has called on the opposition to offer greater support to the videogames sector.

“If the UK is to be a global centre for the digital industries then we need to create an environment in which business is relatively lightly regulated, the tax burden is comparatively light, simple and stable, and investment in R&D is encouraged,” said Wilson. 

“With specific reference to the videogames industry, the Conservative Party’s Review Group should support a tax break for games production, similar to the European Union approved French tax credit. This would help to ensure that the UK videogames development sector remains world beating.

“Industry research predicts that if a 20 percent production tax credit was introduced, investment would increase by £220 million over five years, generating a further 1,600 graduate jobs over the same period. This tax break would cost HM Treasury £150 million over five years.”