Why is theatre treated as the poor relation to film when it comes to tax incentives for entrepreneurial investment, asks Adam Kenwright
Chancellor George Osborne has delivered his 2012 Budget to the Commons and, as predicted, he unveiled a film industry-style tax break to encourage investment and development in the animation, video game and ‘high-end’ TV production sectors in a bid to keep creative talent in Britain. This tax break has been instigated specifically to stimulate domestic and international investment in selected UK creative industries, who have lobbied for such changes for several years.
Whilst I absolutely welcome the Government’s new tax breaks for the three important sectors, it is scandalous and incredibly short-sighted to overlook the enormous benefit that the UK continues to derive from commercial and subsidised live performance. The cuts in public-funded arts grants made to cultural bodies and organisations last year were nearly catastrophic and it is testament to their vision and artistic excellence that most managed to survive.
Indeed, in several instances, the UK theatre and live entertainment sector has continued to achieve huge success both in the UK and internationally, despite the odds. The Tony award-winning production of War Horse at the Lincoln Center in New York, which was developed and first produced at the UK’s National Theatre, as well as the brilliant recent productions of The Royal Court’s Jerusalem and Clybourne Park, which triumphed in the West End and then on Broadway, are great examples of British theatre translating its home-grown popularity into global success. Productions like Matilda create jobs through artistic excellence and help to drive the economy in the West End; this musical looks set to continue in the long line of theatrical exports from the UK to Broadway, Australia, Japan and beyond. We have to do more to encourage and incentivise private giving and commercial investment into this sector.
Various governments for the past 20 years have worked with the UK film industry to encourage entrepreneurial investment and reward major philanthropic giving. As a result, investment in the UK film industry has grown at a steady pace, and 2011 saw the total UK film productions spend hit £1.2bn, the highest figure recorded since tax incentives were first introduced in 1997.
With the government’s support, the film industry has weathered a challenging economic climate. Yet its theatrical equivalent has not had that same luxury. This is in spite of the latest Arts Council figures, which show that one in four adults go to the theatre and that the industry adds over £2.8bn a year to the UK economy. Faced with such compelling statistics, why isn’t the live performance industry receiving the same treatment and, more specifically, tax breaks or investment from individuals?
The government cannot encourage one portion of the creative industry and then turn a blind eye to the largest employer of them all. Further investment and support for new theatre would create jobs and help drive a multi-billion pound tourism, entertainment and arts industry that will sustain the UK as the very best producer of live performance worldwide. We, as leaders in the arts community, must continue to lobby the government and put pressure to extend tax breaks to the performing arts and live entertainment industry: our future depends on it.