Chancellor Alistair Darling once again let down the thriving UK video games sector with his latest budget, leading industry figures have complained.

Tiga, the Brighton-based trade association for video game developers, has been lobbying for tax breaks to support developers and studios for several years.

Chief executive Richard Wilson was disappointed £150 million could not be found to fund them in last month’s budget.

He said: “A tax break of this order would bolster Brighton game developers, enable the industry to create more innovative games and take on more graduates.

“The governments of most of our competitors, such as some states within the USA, France, South Korea, Australia and Canada, provide equivalent tax breaks for their own industries.”

Mr Wilson welcomed the Chancellor’s announcement of a £750 million strategic investment fund, £50 million of which will be allocated to the Technology Strategy Board (TSB) and £10 million to UK Trade & Investment (UKT&I) to help exporters.

He said: “Some UK game developers have already benefited from TSB funding and many have been helped by UKT&I in the past.”

The discontent within the games industry was further outlined by Ian Livingstone, creative boss of Tomb Raider developer Eidos. He told industry magazine MCV: “Over the years the Government has stood by and failed to support our industry while it has supported the film industry which contributes less to UK GDP than we do.

“It has failed the games industry on the basis of skills, production tax credits, IP protection and even with helping to change the perception of games.”

Brian Rodway, managing director of Affinity Studios, Marlborough Place, Brighton, which makes mobile phone games and is working on projects for the PlayStation 3, agreed the budget was a let-down.

He said: “Mr Darling did not really help us at all. We were ignored. Tiga has been doing its best to lobby Government for as long as we have been going.

“Other places in the world, like Canada, are giving tax breaks of 40% to games companies and we are finding it difficult to compete.

“People in Government do not understand the games industry. It is not like the old car or steel industries that have unions and strong ties to the Government but we probably bring just as much money in.”

Matt Martin, editor of Gamesindustry.biz, run by Brighton-based Eurogamer, said: “It would be great if the Government could help more but I don’t think they are going to. Part of the problem is the games industry is doing well itself already without tax breaks.

“But the Government is in danger of losing this thriving industry and a lot of studios have already outsourced work to cheaper parts of the world.”

Mr Martin believes Tiga and games industry figures need to work harder to lobby future governments to support the sector. He said: “I don’t think there will ever be tax breaks in the UK.”