No, they should not, because there is nothing 'special snowflake' about the game biz versus other sectors--and God forbid, individuals--who are propping up your ridiculous, Labour-built, welfare state.
I think there should be a level playing field. full stop. That said, the simplest, easiest, and best method to accomplish this level playing field, which IMNSHO, should apply across media, and indeed, industry, would be to abolish tax breaks worldwide. Corporations (and their shareholders) like their tax breaks, politicians like the leverage the ability to grant (or deny) them, activists and special interest groups like the social engineering implications, and Tax Accountants like having gainful employment. If they are to believed (they are not) the only viable alternative is a tax breaks arms race, or else all the games devs will move away and no one will drive Priuses.
That said, perhaps in the current climate such tax breaks are necessary for UK devs to compete in the worldwide market, I don't know, not really interested to even WANT to know what we here in America would call the "Inside Baseball" of the implications of worldwide tax incentives on game developer finances, except insofar as to declare the fact that they have ANY effect deplorable.
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