Tiga, the trade body representing independent UK games developers has submitted new evidence to the treasury and to the Department of Culture, Media and Sport in support of targetted tax relief for the games industry.

The report, titled A Video Games Tax Relief: An Incentive to Build a Sustainable Video Games Development Sector, puts forward plans for a tax relief system similar to that already provided to the UK film industry. This would mean 20% relief on the UK core expenditure for games costing over £3m to produce, and 25 per cent of the UK core expenditure for game projects budgeted at between £50,000 and £3m.

Tiga chief executive Dr Richard Wilson claims that the tax relief would more than pay for itself over five years, calculating that it would generate and safeguard 4,661 direct and indirect jobs, while increasing the games development sector's contribution to UK GDP by £283m.

Britain has always been a world leader in the global games industry, which generates more than $50bn a year and is projected to grow by 8.2% a year up to 2015, according to Price Waterhouse Coopers.

However, tax incentives employed in countries such as Canada and the US have attracted major publishers, who have witthdrawn support from UK studios over the past five years.

Tiga has estimated that 41% of the jobs lost in the UK games development sector between 2009 and 2011 relocated overseas, many to Canada.

Tiga has garnered the support of Consrvative MP John Whittingdale for its latest attempt to bring tax relief to the industry – he wrote the Foreword to Tigas report.

"The opportunity for Britain is clear," he said. "The global games industry has grown by 23%through the global financial turmoil, and is projected to grow by over 8% each year to 2015. If the right support from government is forthcoming, the UK game development sector can take advantage of this projected growth, consequently contributing to the rebalancing of the UK economy."

Labour MP Tom Watson, himself a keen gamer, has backed the tax relief cause since the outset, blogging angrily about the issue on his own site.

Wilson asserts that parlimentary support for the campaign is growing. "In Westminster, the all-party group on the computer and video games industry are supportive of games tax relief," he said.

"We have a list of MPs on the Tiga website. Additionally, the Scottish government has repeatedly backed games tax relief. The SNP and the Labour Party MPs have regularly backed [tax relief for the games industry]. Also, the Conservative leader in Scotland has publicly supported tax breaks for games production."

In 2010, Labour chancellor Alistair Darling announced plans to introduce tax relief for game developers in the party's last budget before the general election.

However, when the coalition government gained power, George Osborne abandoned the plans in his emergency budget.