Budget 2012: Broadband boost for cities and tax breaks for video game firms

TEN core cities including Birmingham, Manchester and Leeds are to share in a £100m pot for superfast broadband, the chancellor announced.

And in another boost to the digital and video industries, Mr Osborne said tax breaks would be extended to video game companies, and those working in high-end animation and TV production.

Saying he wanted to ensure “Wallace and Gromit stay in the UK”, the chancellor introduced tax reliefs first promised by his Labour predecessor but never delivered. The gaming industry had lobbied hard for the incentives in the face of growing competition from Canada and Ireland, whose tax regimes were encouraging many multi-million dollar computer game firms to relocate their development hubs.

Other cities to benefit from the accelerated broadband rollout include Bradford and Bristol, and there would be a further £50m pot created to help smaller cities reach for the superfast connectivity.

Mr Osborne said: “The film tax credit  helped generate over £1 billion of film production investment in the UK last year alone.

“Today I am announcing our intention to introduce similar schemes for the video games, animation and high-end TV production industries.

“To be Europe’s technology centre we also need the best technology infrastructure. Our plans will deliver some of the fastest broadband speeds in the world. The fastest digital speeds in the world available in our cities, with the most connected countryside in Europe – and the most creative digital content anywhere.

“That’s what a modern industrial policy looks like.”