I believe the video game industry here in the UK has (one of) the highest contribution to the economy to total employees ratio. It's been one of the industries that continued to grow / show success over the years and suchlike, and the government is risking losing it with this.
As said, there is without a doubt a huge risk Bizarre, Rockstar, Sony Studios and all will simply move to Eastern Europe or Asia in the next 5 or so years, as it's just cheaper. Much much cheaper. Then our politicians will be scratching their heads when yet another contributor to our economy isn't contributing at all.
Whether Tax-Reliefs is the best method / incentive the UK needs to do something to remain competitive in attracting what has been a successful industry to our country, and currently we're quite simply a far less attractive proposal. I can see this yet again being another UK industry lost to the global market in a decade or so.
well if that happens in the UK then it will happen in France, Germany and probably Japan too...