Muted applause for arts tax relief boost

THE arts and culture sector has welcomed the Chancellor’s announcement of a tax relief extension, but said the Government must go further to aid its recovery.

Rishi Sunak said tax relief for theatres, orchestras, museums and galleries will be extended for two years, to March 2024, in order to help them rally after months of lockdown closures and lost revenue.

Up to £2million will be invested in a new Beatles attraction in Liverpool, he said.

Maria Balshaw, director of the Tate art museums and galleries and chairman of the National Museum Directors’ Council, celebrated the tax relief extension.

‘It’s great to hear the Government showing such strong support for the arts,’ she said. ‘I’m particularly grateful to see the extension of tax relief that has already made a huge difference for the sector, and much-needed investment in the public museum buildings, which make up such a vital part of our cultural infrastructure.’

Julian Bird, chief executive of UK Theatre, also welcomed the measures.

He said the increase in rates of relief for theatre tax will ‘provide producers and investors with greater confidence in developing our world-leading theatre and drive the cultural recovery’. He added the ‘welcome news that core funding for the Department of Digital, Culture, Media and Sport and Local Authorities is set to increase will reassure venues and performing arts companies up and down the country that rely on their support in delivering culture to their communities’.

The chief executive of industry body UK Music, Jamie Njoku-Goodwin, called for further action to support the music sector’s post-pandemic recovery. He added: ‘Covid halved music’s economic contribution to the UK economy from almost £6billion a year to £3.1billion in 2020.

‘If the Government strikes the right note by delivering the support we need, our music industry will come back stronger and bigger than ever.

‘We are pleased to see the extension of the orchestras’ tax relief, yet the Government has missed an opportunity to not take forward further music tax incentives to help boost jobs and economic growth.

‘Similarly, business rate relief for venues is very welcome, yet we remain concerned about next April’s VAT hike for live events.

‘Ministers must put turbo-chargers under the efforts to clear the barriers still making it so hard and expensive for musicians and crew to tour easily in the EU.’