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Budget 2012: 'Super-connected cities' and video games tax credits Budget 2012: 'Super-connected cities' and video games tax credits
(40 minutes later)
 
Chancellor George Osborne has announced which cities will benefit from a £100m pot of Treasury cash aimed at making them "super-connected".Chancellor George Osborne has announced which cities will benefit from a £100m pot of Treasury cash aimed at making them "super-connected".
They include Birmingham, Bradford, Bristol, Leeds, Manchester and Newcastle. These are London, Edinburgh, Belfast, Cardiff, Birmingham, Bradford, Bristol, Leeds, Manchester and Newcastle.
He also announced a further £50m to improve net access in "smaller cities" and pledged a tax credit scheme for the video games industry. href="http://cdn.hm-treasury.gov.uk/budget2012_complete.pdf" >He also announced a further £50m to improve net access in "smaller cities" and pledged a tax credit scheme for the video games industry.
Mr Osborne said that he wanted the UK to become "Europe's technology centre".Mr Osborne said that he wanted the UK to become "Europe's technology centre".
The super-connected cities were first announced in Mr Osborne's autumn statement when he pledged £100m to create 100Mbps (megabit per second) citywide networks in 10 urban areas.The super-connected cities were first announced in Mr Osborne's autumn statement when he pledged £100m to create 100Mbps (megabit per second) citywide networks in 10 urban areas.
He said at the time that the four UK capitals - London, Edinburgh, Cardiff and Belfast, would be the first to benefit. By 2015 it is hoped the investments in cities will provide ultrafast broadband coverage to 1.7 million households and high-speed wireless broadband for three million residents.
The government will also provide an additional £50m to fund a second wave of 10 smaller super-connected cities
Motorway reception
The chancellor also announced plans to extend mobile coverage to 60,000 rural homes and along at least 10 key roads by 2015, including the A2 and A29 in Northern Ireland, the A57, A143, A169, A352, A360 and A591 in England, the A82(T) in Scotland and the A470(T) in Wales, subject to planning permission.
Funding would come out of the £150m investment announced in the Autumn Statement.
The government will also consider whether direct intervention is required to improve mobile coverage for rail passengers.
Seb Lahtinen, co-founder of broadband news site ThinkBroadband said the move was "part of a drive to ensure that not only is the UK the best in Europe in terms of broadband speeds, but can compete on an international stage against countries like South Korea".
"The announcement by the chancellor is a recognition of the fact that broadband technology underpins the economy as a whole, and in particular the digital content industries in this country," he added.
Others felt that money would be better spent in improving rural broadband.
"Whilst funding earmarked for ultra-fast broadband in 10 UK cities is both ambitious and heartening, and will undoubtedly benefit technology companies looking to develop and expand in the UK, the primary concern should be the provision of a quality service to rural areas before pursuing the title of fastest broadband in the world," said Julia Stent, director of telecoms at price comparison site USwitch.
"Although there are still broadband blackspots and speed issues in some urban areas of the UK, we worry that the major towns and cities will speed ahead of the rest of the country in the premature quest to become fastest in the world," she added.
'Brilliant''Brilliant'
The other big budget news for the tech sector was the pledge for tax breaks for the games industry.The other big budget news for the tech sector was the pledge for tax breaks for the games industry.
It plans to introduce corporation tax reliefs from April 2013 for the video games, animation and high end television industries, but all will subject to State aid approval and consultation.
Richard Wilson, chief executive of video games industry trade body Tiga, had spent the last four years lobbying for these: "This is a brilliant decision by the government and terrific news for the UK video games industry.Richard Wilson, chief executive of video games industry trade body Tiga, had spent the last four years lobbying for these: "This is a brilliant decision by the government and terrific news for the UK video games industry.
"It is also a decisive victory won by Tiga through audacity, determination and endurance," he said."It is also a decisive victory won by Tiga through audacity, determination and endurance," he said.
"Like a boxer knocked down by his opponent, we refused to accept defeat and kept getting back in the ring. This victory will benefit not just the UK games development and digital publishing sector but also the wider UK economy.""Like a boxer knocked down by his opponent, we refused to accept defeat and kept getting back in the ring. This victory will benefit not just the UK games development and digital publishing sector but also the wider UK economy."
Mr Wilson predicted that tax relief for the video games sector should generate and safeguard 4,661 direct and indirect jobs, offer £188m in investment expenditure by studios, increase the games development sector's contribution to UK GDP by £283m and generate £172m for the Treasury.Mr Wilson predicted that tax relief for the video games sector should generate and safeguard 4,661 direct and indirect jobs, offer £188m in investment expenditure by studios, increase the games development sector's contribution to UK GDP by £283m and generate £172m for the Treasury.
In 2010, the then Chancellor Alistair Darling promised tax incentives for developers, a pledge that he never delivered because Labour lost the next election.In 2010, the then Chancellor Alistair Darling promised tax incentives for developers, a pledge that he never delivered because Labour lost the next election.
The news comes as struggling video games retailer Game said that it intended to file for administration.The news comes as struggling video games retailer Game said that it intended to file for administration.