CVG reports that the figure is most likely a re-purposing of data from UK developer trade body TIGA. The body had estimated that tax breaks would cost £192 million, although it believed more than £400m would have been recouped in tax receipts.
Meanwhile, Develop claims that the government cancelled tax break plans under pressure from an unnamed global publisher described as “one of the biggest game companies in the world”.
Commenting on the report, TIGA CEO Richard Wilson told CVG: "I don't have any evidence to support that claim, but what I would say it's almost unheard of in any economic sector that there's complete unanimity of approach… If - and it only is an 'if' - there was a games company that didn't particularly support UK tax relief, it's not really a shock or a horror in many respects. It's almost unheard of for there to be complete conformity of opinion.
"However, we presented a very coherent, sustained case that certainly convinced the last government. There was a huge amount of consensus behind our proposal of a games tax break. Even if there was somebody arguing against us, it's the job of the politicians and of the Chancellor to look at the bigger picture and decide what's best for the United Kingdom."
Publisher trade body ELSPA labelled the report "totally left of field", with director general Michael Rawlinson telling GamesIndustry.biz: "These are complicated matters and to say one publisher stopped tax relief for the industry, and that it's not fair, isn't realistic. Following the savage tax cuts and the belt-tightening that the government has announced, irrespective of the benefits to the industry, any tax relief for an entertainment business would have been politically dangerous.
"I think it was a cynical move by a government that wouldn't have had to deal with the consequences following the election," he added.