TIGA chief executive Dr Richard Wilson said: "This is an inspired decision. In backing TIGA's Games Tax Relief the Government has chosen the future over the past, growth over decline, success over failure.
"Games Tax Relief will increase employment, investment and innovation in the UK video games sector.
"Our research shows that Games Tax Relief over a five year period should create or protect 3,550 graduate level jobs, increase or safeguard £457m in development expenditure and encourage developers to adopt new business models and create new Intellectual Property.
"Games Tax Relief will ensure that the UK remains a world leading developer of video games. Games Tax Relief is good for the UK video games industry, good for UK consumers and good for the UK economy.
"For Games Tax Relief to be announced in the Budget is the decisive breakthrough that TIGA has campaigned for. Ministers have made the right decision at the right time for the right industry. Government Ministers are to be warmly congratulated for their visionary decision. TIGA now looks to the Opposition parties to give their full support to Games Tax Relief in the Finance Bill."
Jason Kingsley, TIGA chairman and CEO and creative director of Rebellion Studios in Oxford, said: "This is the right decision for the future of the UK games industry and consumers across the world who enjoy playing British made games. TIGA's Games Tax Relief will enable the UK games sector to compete on a more even playing field. It will also promote the creation of high skilled jobs, enhance investment and stimulate an export focussed industry.
"Games Tax Relief is also a decisive achievement by TIGA. There are around 1,000 trade associations in the UK working to influence Government policy. In 2009, only one sector was invited by the Government to submit a case to change UK tax policy - the games industry.
"Only one trade association submitted a substantive, well researched case for Games Tax Relief - TIGA. Only one trade association campaigned unremittingly for Games Tax Relief right up to today's Budget - TIGA. Today, TIGA has delivered the industry's top priority - Games Tax Relief."