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UK Chancellor Kwasi Kwarteng revealed a \u2018mini-budget\u2019 today that outlined a series of tax cuts, however members of the creative and entertainment sector feel the support is not enough.\u00a0<\/p>\n
While the basic rate of income tax has been cut, the 45% top rate of tax for higher earners has been abolished, and an increase in National Insurance and corporate tax has been scrapped, industry figures believe an opportunity to help businesses has been missed.<\/p>\n
Hannah Essex, co-chief executive of Society of London Theatre and UK Theatre, said in a statement: \u201cThe UK\u2019s world-leading creative and cultural sector, of which theatre is a significant part, grew four times the rate of the UK economy before COVID-19.<\/p>\n
\u201cThe Society of London Theatre & UK Theatre is concerned that the specific challenges faced by the sector were not addressed during the Chancellor\u2019s statement, and the opportunity to commit to supply-side incentives, such as maintaining the higher rate of Theatre Tax Relief, was missed.<\/p>\n
\u201cIndependent economic modelling undertaken in 2021 revealed that, with the right fiscal incentives, by 2025, the UK\u2019s creative and cultural Industries could contribute \u00a3132.1bn in GVA \u2013 more than the financial services, insurance and pension industries combined.\u201d<\/p>\n
However, Essex said the Society of London Theatre and UK Theatre welcomed the Chancellor\u2019s commitment to growth, supply-side incentives and reform.<\/p>\n
She added: \u201cWe agree that the UK economy has huge potential, and there are too many barriers to enterprise.<\/p>\n
\u201cWe hope that the government will recognise the strength of the theatre sector as an entrepreneurial and SME-led economic driver, locally, nationally and globally. We look forward to working with the Government to ensure that theatres and performing arts organisations are best positioned to contribute to their Growth Plan.\u201d<\/p>\n
The Night Time Industries Association (NTIA)\u2019s CEO Michael Kill echoed this morning\u2019s mini budget being a missed opportunity.<\/p>\n
\u201cWe are extremely disappointed with the Chancellor\u2019s announcement this morning,\u201d said Kill.<\/p>\n
\u201cIt will be seen as a missed opportunity to support businesses that have been hardest hit during this crisis, causing considerable anxiety, anger and frustration across the sector as once again they feel that many will have been left out in the cold.<\/p>\n
\u201cWe have been extremely clear with the Government that the \u201cEnergy Bill Relief Scheme\u201d, even with the announcement of the limited tax cuts on National Insurance, Corporation Tax and Duty, is unlikely to be enough to ensure\u00a0 businesses have the financial headroom to survive the winter, especially with yesterday\u2019s announcement of the rise in interest rates from the Bank of England.<\/p>\n
\u201cI would urge the Chancellor and Government to reconsider these measures, given the limited impacts of the current tax cuts on the immediate crisis for many businesses across the sector, the extremely vulnerable position the night time economy and hospitality sectors remain in, and re-evaluate the inclusion of general business rates relief and the reduction of VAT within these measures.\u201d<\/p>\n
LIVE (Live music Industry Venues and Entertainment), a music business trade body in the UK, is also calling for a reduction in VAT, in particular on ticket sales, as well as a major reform of business rates.<\/p>\n
The trade body also recently wrote an open letter to Kwasi Kwarteng, urging him to cut the VAT rate on music ticket sales.<\/p>\n
\nWe need a fresh approach to inject cash into our sector. Join us in calling on Government for: <\/p>\n
1) A reduction in VAT on ticket sales.
2) Major reform of Business Rates. pic.twitter.com\/FkkrYrpbYO<\/a><\/p>\n\u2014 LIVE (@LiveMusic_UK) September 23, 2022<\/a><\/p>\n<\/blockquote>\n
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