Tax breaks for the British videogames industry moved a step closer this week, after a government Minister admitted that the administration must “look again” at the issue.

Speaking at a games industry conference held in London yesterday, Margaret Hodge, Minister for Culture, Creative Industries and Tourism, said that UK.gov needs to reconsider the issue.

The videogame industry, she said, “quite rightly makes the comparison between tax relief on offer to the film industry, and [the benefits available] for games".

Both France and Canada already give tax relief to local games developers, but Hodge admitted that the UK government is nervous about introducing a similar system in Blighty because of risk of cross-country funding wars.