The government has announced that a previously temporary tax relief programme affecting theatres has been made permanent. Announced as part of the Spring Budget in the House of Commons yesterday afternoon, Chancellor Jeremy Hunt (Conservative, South West Surrey) confirmed that the trialled Theatre Tax Relief funding would become permanent, saying during the Budget statement: “I particularly want to recognise the contribution of our creative industries and the tourism that comes from orchestras, museums, galleries and theatres. In the pandemic, we introduced higher 45% and 50% levels of tax relief, which were due to end in March 2025. They have been a lifeline for performing arts across the country.”
He continued: “Today, in recognition of their vital importance to our national life, I can announce that I am making those tax reliefs permanent at 45% for touring and orchestral productions, and 40% for non-touring productions. Lord [Andrew] Lloyd Webber says that this will be a once-in-a-generation transformational change that will ensure Britain remains the global capital of creativity”.
The changes permanently reduce the total sum groups must pay in taxation to the government from their earnings for productions they put on, which is largely accepted to be incredibly valuable to an industry still struggling from effects associated with the Cost of Living crisis and Covid-19 pandemic.
In a statement released following the Budget yesterday, The Society of London Theatre & U.K. Theatre welcomed the move by the Chancellor of the Exchequer, with Eleanor Lloyd, the President of the Society of London Theatre saying: “Today’s announcement will enable us to unlock further private investment, and result in more and bigger productions… create more jobs and reach more audiences. Making the relief permanent prevents the cliff-edge of the TTR taper, which our members predict would have shrunk the theatre sector by almost a third”.
Despite the reaction from the Opposition Labour Party being largely negative towards the Budget motion, Leader of the Opposition Keir Starmer (Labour, Holborn and St. Pancras) did welcome this move, giving a short acknowledgement in the statement he made in response: “It is welcome to hear the tax relief on performing arts and theatres being made permanent. I notice that the Ambassador Theatre Group, which owns one of the largest theatres in Torbay, the Princess, welcomes that measure”.
The Spring Budget is an annual motion in which the Chancellor of the Exchequer sets out the government’s spending plans, including changes in taxation levels in a range of different areas. It is debated for several days following the motion being delivered to the House of Commons, traditionally led by the Chairman of Ways and Means, currently Deputy Speaker Dame Eleanor Laing (Conservative, Epping Forest).
Whilst many details of yesterday’s Budget will be fiercely debated by politicians and the wider public for many weeks afterwards, the permanent tax relief afforded to theatres has been received positively by almost all, with many in the creative industries thankful for the Chancellor’s decision.
The 2024 Spring Budget was delivered in The House of Commons on March 6th
