Theatre sector welcomes commitment in Spring Budget to extend higher rate tax relief for a further two years, saying it will help them attract new investment.
UK Parliament
Measures introduced to support theatres, museums and orchestras through the impact of the Covid pandemic will be extended, Chancellor Jeremy Hunt has said.
Delivering his Spring Budget in parliament today (15 March), Hunt said he intends to maintain the higher rate of tax relief for theatres, museums and orchestras for an additional two years.
"Because our theatres, orchestras and museums do such a brilliant job at attracting tourists to London and the UK, I'll extend for another two years their current 45% and 50% reliefs," he said.
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The government initially raised the rates of three corporation tax reliefs that are collectively referred to as the ‘cultural reliefs’ - Theatre Tax Relief, Orchestra Tax Relief, and Museums and Galleries Exhibition Tax Relief - in 2021.
It had been intended as a temporary measure to help the sector recover from the impact of Covid and had been due to taper down from 1 April 2023, before returning to previous levels from 1 April 2024.
Claire Walker and Hannah Essex, Co-CEOs of SOLT and UK Theatre, said they were "delighted" that the Chancellor and Secretary of State for Culture, Media and Sport Lucy Frazer have "recognised the value and potential of the theatre sector in the budget."
"Maintaining the higher rate means that producers can provide stronger incentives to attract new and greater investment, move forward with confidence on creating exciting productions and provide more jobs for the UK’s hugely talented freelancers, staff and performers in the creative industries," they said.
They said the new productions unlocked by the higher rate will drive economic growth across the country.
"As the Chancellor plans to outline his long-term vision for the creative industries as a key growth sector later in the year, maintaining this higher rate of relief is a welcome first step to deliver growth in the creative economy, and the theatre industry looks forward to increased collaboration with HM Treasury over the next few months as the vision is developed," they added.
'Precipitous decline in arts funding'
But trade union Equity has said the support does not go far enough and is calling for a "total reset of arts policy".
Paul W Fleming, General Secretary of Equity, commented: "It is small comfort that the government has continued its commitment to using theatre tax relief to plug the gaps created by austerity. However even this is only as a result of intense lobbying from Equity and the industry."
"Because while the Chancellor talks about a budget for growth, the reality is his government has presided over a precipitous decline in arts funding, culminating in the closure of Oldham Coliseum, and potential job losses at the English National Opera."
"We need a total reset of arts policy, based on investment and good jobs – decent culture for all, not constant culture war."
Hunt also confirmed details, released yesterday, that £8.6m will be provided to Edinburgh’s festivals.
Nicola Benedetti, Festival Director, Edinburgh International Festival said: "This will ensure the greatest talent from the UK can continue to be presented alongside some of the world's leading artists in dance, music, theatre and opera, in Edinburgh this August.
"The investment in the International Festival and the Edinburgh Festival Fringe will help boost the city's reputation as a destination for culture and in turn contribute to the economy of the Festival City.”
Levelling-up boost
Hunt also unveiled plans to increase investment in government levelling-up initiatives, including £200m for local regeneration projects, £161m for regeneration in mayoral combined authorities and £400m for levelling-up "partnerships".
The Chancellor said areas earmarked for levelling up partnerships include Redcar and Cleveland, Blackburn, Oldham, Rochdale, Mansfield, South Tyneside, and Bassetlaw.
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