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UK games industry tax relief delayed

But on the upside, beer will be 1p cheaper.

Government plans for tax relief in the UK games industry have been delayed.

The hold-up was revealed during today's budget, GamesIndustry International reported.

The package of benefits is being held up by the European Commission, which has failed to approve the government's points-based cultural test necessary to authorise tax relief under European law.

Man of the people George Osborne.

Games which would pass the UK government's test are those which would hold UK cultural significance, for example those with largely British characters or settings.

It's the same method used to qualify for tax relief within the film and TV industries.

UK trade body UKIE said it still expected the UK government to persevere with its plans.

"We were prepared for this as it was always a possibility when establishing an entirely new European tax scheme, especially as games are so different to film and TV," UKIE boss Jo Twist explained.

"We are confident of the government's commitment to implementing the tax breaks as soon as possible. But we hope that the delay will be a short one and shall now be doing everything that we can, working with UK government, the European Commission and TIGA, to get the state aid approval that we need as soon as possible. They absolutely will still happen."

UK Chancellor George Osborne previously promised that UK games industry tax relief would be "among the most generous in the world".