Government’s £1.57bn rescue too late for the arts, report says

THE Government failed to recognise the effects of the pandemic on the arts industry and its bailout came too late, according to a report by MPS.

Mass redundancies could have been avoided if the Government had realised the scale of the threat and responded properly, according to the digital, culture, media and sport select committee.

Instead, there was a “regrettable” delay in offering a £1.57billion support package, and a period of uncertainty during which many organisations had no choice but to announce job losses.

The report follows the committee’s inquiry, which heard that a “significant proportion” of theatres may close permanently due to the crisis.

“The failure of the Government to act quickly has jeopardised the future of institutions that are part of our national life and the livelihoods of those who work for them,” said Julian Knight, chairman of the committee.

The arts now faced an “existential threat”, and the committee called for urgent measures, including more support for freelancers and small companies, clear timelines for reopening and technological solutions to enable audiences to return.

The report recommended that the Government introduce a temporary change to legislation to ensure that museum collections cannot be liquidated for financial assets in the first 12 months if they face insolvency.

It also urged the Government to promote an extension of the summer holiday season to boost the struggling tourism industry. It found that capacity constraints caused by social distancing requirements had made “smoothing out demand more important than ever”, and that reducing the seasonality of the tourism sector was vital both this year and in 2021.

The committee called on the Government to launch a “national campaign” to restore consumer confidence in the domestic holiday market.