Babel is Europe's leading provider of specialist services to the games and interactive entertainment industries.

Financial director Steve Kingswell said the Hove-based firm was considering acquisitions and expansion but the regulatory regime in the UK and Europe often distorted business decisions.

Steve hoped the Budget would help to introduce the same financial and tax consequences however a business was set up in the EU.

Much of the firm's success relied on continued investment in software development, which did not usually qualify for research and development tax relief. Steve also hoped to see this changed.

l The future extension of the research and development tax credit to include some software developers should benefit Babel.