Tax Reliefs: Theatre, Orchestra and Museums and Galleries Exhibition

Earl of Clancarty Excerpts

Tuesday 15th October 2024 Lords Chamber

[Lord Livermore (Lab)]

I know that the noble Lord has genuine concern for, and a great deal of expertise and experience in, the arts and culture sector. As I said, the Government are committed to supporting the creative industries, and to creating good jobs and accelerating growth in film, music, gaming and the other creative sectors that the noble Lord mentioned. That is why we have ensured that the creative sector is a key part of our industrial strategy. As the noble Lord said, I cannot comment on any specific taxes, but he will know that the Government face a very challenging fiscal situation. He will know that the previous Government left a £22 billion black hole in the public finances, which they concealed from the public, Parliament and the OBR. Addressing that will involve very difficult decisions on spending, welfare and tax.

[The Earl of Clancarty (CB)]

My Lords, given that there are regional museums that are currently facing insolvency, does the Minister agree with me that, while tax relief is useful—indeed, necessary—the real concern for the arts is the wider one of inadequate funding levels?

[Lord Livermore (Lab)]

Clearly, the Government recognise the importance of the arts to our public life and support the funding of the arts at the appropriate level. Unfortunately, I will have to say that the Government will set out their plans for supporting the arts in the coming spending review.

HMRC Self-assessment Helpline

Earl of Clancarty Excerpts

Tuesday 26th March 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The HMRC board as currently constituted is advisory. I know that my colleague the Financial Secretary to the Treasury is taking a keen interest in the strategy and its operationalisation within the HMRC. I expect that we will see some improvement shortly.

[The Earl of Clancarty (CB)]

My Lords, I thank the Minister very much for helping to facilitate the meeting on A1 forms that parliamentarians had with the Financial Secretary to the Treasury, but a specific concern of users was very much the lack of a helpline, so what I am hearing at the moment is concerning.

[Baroness Vere of Norbiton (Con)]

The helplines that would have closed relate to VAT and PAYE and self-assessment. HMRC is putting in various digital solutions to ensure that people can access A1 forms as quickly as possible and, as with all other forms of tax, accessing online is quicker, can be more convenient and certainly offers the best value for money for the taxpayer.

Self-employment: A1 Forms

Earl of Clancarty Excerpts

Monday 12th February 2024 Lords Chamber

Asked by

[The Earl of Clancarty]

To ask His Majesty’s Government what steps they are taking to improve the provision of A1 forms, in particular for self-employed workers in the music industry touring in the European Economic Area.

[The Parliamentary Secretary, HM Treasury (Baroness Vere of Norbiton) (Con)]

My Lords, HMRC is rolling out significant improvements to the application process by allocating extra resources to help answer phone calls and deal with correspondence across all national insurance services. That includes the training and deployment of more people to process A1 applications. HMRC has also introduced new digital A1 certificate application forms and will roll out automation technology to help process customers’ applications faster.

[The Earl of Clancarty (CB)]

My Lords, as the Minister will be aware, concern is such that both LIVE and the Independent Society of Musicians have written to the Treasury about this issue. I appreciate that there is a recovery strategy but, as the April deadline approaches, there has been no noticeable improvement. Many musicians and crew are receiving their forms after a tour has ended, meaning that money is withheld, potentially permanently. Ultimately, the Treasury will be the loser. Will the Minister agree to meet Peers and interested parties to talk about this? I hope she agrees that that might be helpful.

[Baroness Vere of Norbiton (Con)]

I am grateful to the noble Earl for raising this issue. I reassure him that my inquiries in the Treasury have caused one or two minor waves in ensuring that this gets the priority that it needs. There has been an improvement, although I accept that it is not good enough—as HMRC also acknowledges—and that more needs to be done. I will take away his request for a meeting. Although I am of course happy to meet him, the subject is not directly within my portfolio, so it might be better if the relevant Minister met him.

Local Authorities: Budgets

Earl of Clancarty Excerpts

Tuesday 19th September 2023 Lords Chamber

[Baroness Penn (Con)]

My noble friend sets out the rationale for the decision that was taken, and the Government have made sure that, in the commission’s place, we have strong controls so that local government spending is done in the best possible way.

[The Earl of Clancarty (CB)]

My Lords, arts facilities will be among the first to go when local authorities have no money. The wonderful Lightbox gallery in Woking, not far from me, is now under threat, as indeed is funding elsewhere for symphony orchestras and much else. I repeat what others have asked: will the Government properly fund our local authorities, which have been underfunded for years, so that all our cultural and leisure amenities are allowed to survive and thrive?

[Baroness Penn (Con)]

My Lords, I repeat what I said about the recent spending review being the largest increase to core spending powers for local government in over a decade. Additionally, we have put significant support into the arts and culture sector through not only the culture recovery fund during the pandemic but, for example, support to swimming pools— they face high energy costs during the current period of inflation—in the last Autumn Statement. We continue to provide that specific support.

Tourist Spending: VAT

Earl of Clancarty Excerpts

Wednesday 24th May 2023 Lords Chamber

[Baroness Penn (Con)]

I absolutely agree with my noble friend that levels of government borrowing are high because of the impact of both the Covid pandemic and the war in Ukraine. One of the reasons that levels of debt are high is that we have provided strong support to sectors such as tourism during the difficult years of Covid, and we are also providing strong support to them to recover from the pandemic and build back visitor numbers.

[The Earl of Clancarty (CB)]

My Lords, the Minister should look at the Oxford Economics report from last year, which showed a net economic benefit from tax-free shopping. Does she not accept that this is about an ecology of tourism—not just high-end shopping but the hospitality trade, theatres, concert halls and more? The UK needs to clearly show that it is open for business, as other countries are capitalising on this failure.

[Baroness Penn (Con)]

My Lords, I would say to the noble Lord that the Government have looked very carefully at the Oxford Economics analysis, and we do appreciate that some of the costs would be offset by higher visitor numbers and their spending. However, the OBR’s and the Government’s previous analysis suggested that the offset was marginal and the policy still comes with significant fiscal costs. One of the key differences between the Government’s costings and those produced by Oxford Economics is the assumptions around additional visitor numbers, with the OBR estimating that VAT-free shopping could bring in 50,000 to 80,000 additional visitors and the industry commission report suggesting 1.6 million additional visitors.

Theatre Tax Relief

Earl of Clancarty Excerpts

Thursday 9th March 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, the points that the noble Baroness makes are entirely those that we would want to consider in looking at the issue. She is absolutely right about the value and the costs when it comes to the production of these shows, which is why the tax relief is focused there. She is also right that they can bring huge economic benefit, including through exports, attracting visitors to the UK and productions going on the road. Those are the kinds of things that the DCMS and the Treasury will consider when looking at the tax relief.

[The Earl of Clancarty (CB)]

My Lords, there are concerns similar to those of the theatres in the visual arts sector concerning the museums and galleries exhibition tax relief. The Treasury and the noble Lord, Lord Parkinson, will be aware of this, having received the letter signed by many museums’ and galleries’ organisations which asks for that relief to be extended. It has been not just helpful, but vital to the sector, not only for the larger museums, but smaller galleries and emerging artists outside London. If the Government want to see this sector grow across the whole country, they should seriously consider maintaining this tax relief, and at the current level.

[Baroness Penn (Con)]

The noble Lord is right that the theatre tax relief is not the only cultural tax relief that we have. The Covid support that was put in place to extend the levels of that relief cover those areas as well. I know that my noble friend Lord Parkinson has been listening very carefully to the representations made by that sector and passing them on to the Treasury.

Queen’s Speech

Earl of Clancarty Excerpts

Wednesday 11th June 2014 Lords Chamber

[The Earl of Clancarty (CB)]

My Lords, I want to take this opportunity to expand further on an issue that I raised last month in an Oral Question: the protection of cultural property in times of conflict. I am grateful to Professor Peter Stone of the International Centre for Cultural and Heritage Studies at Newcastle University and of Blue Shield for his briefing. Blue Shield, for those who do not know, has nothing to do with American healthcare but is the international organisation concerned with this issue. It has been described as the cultural equivalent of the Red Cross.

We have perhaps a peculiar grouping today, as the noble Baroness, Lady Bonham-Carter, pointed out, in which culture is being discussed alongside defence and foreign policy. Nevertheless, for this particular issue, it would be helpful to have the ear not only of the DCMS but of the Ministry of Defence, the Foreign and Commonwealth Office and DfID.

It is disappointing that the Government have not pledged to include, as part of their final Session, legislation to ratify the 1954 Hague Convention for the Protection of Cultural Property in the Event of Armed Conflict. This parliamentary year would be the perfect time to do this and there was clear support around the House at Question Time last month for it to happen. My understanding is that the Bill drawn up by the previous Administration in 2008 would not need to be changed a great deal and that therefore this would be a relatively simple thing to do.

It is now recognised that there are many reasons—not just the clear one of cultural and artistic importance—for protecting the world’s museums and archaeological and other cultural sites. Such reasons include the social, the humanitarian, a respect for people’s own culture, the economic and, yes, the military as well. It is, for example, increasingly recognised that the protection of culture is a so-called “force multiplier”. It can aid military success. As Peter Stone has pointed out, respecting the living heritage, such as a minaret, may not increase good will but it will not damage it irreparably, which might otherwise be the case. In Syria, the looting which has devastated archaeological sites is also a means by which fighting is financed and therefore prolonged. Protecting culture helps with rebuilding a country in social and economic terms.

In May, the Minister, the noble Lord, Lord Gardiner, said:

“What is important in practical terms is that our Armed Forces are very conscious of the protocol and the convention, which is why they adhere to what is intended”.—[Official Report, 12/5/14; col. 1652.]

However, it must be emphasised that that in itself is not quite good enough, because what cannot then be done, until the convention is ratified, is for this country, its academics and others to speak out and influence leaders and colleagues across the world with the requisite moral authority, as well as to work with other countries to develop a greater understanding of the problems involved.

In evidence given to the Culture, Media and Sport Committee on the draft Bill in 2008, Brigadier Gordon Messenger, director of Joint Commitments (Military) at the Ministry of Defence, said:

“I know of no reason why the military would not be anything other than fully supportive of progress towards the Bill and ratification”.

It is my understanding that that position has not changed.

Of course, the criticism can be made that others who have ratified this treaty, such as Iraq, have themselves behaved badly. However, as a world community, it is the only thing we have, and we now appear exceptional internationally in terms of our commitment, or non-commitment—both real and moral—to this principle. Britain is the only significant military power not to have ratified. This is not a good place to be. Peter Stone says that not ratifying,

“leaves the UK isolated internationally and at a significant disadvantage in our aspiration to be a global leader with regard to international humanitarian law. This position undermines our claim to be at the forefront of working for global security and peace”.

Why, after 60 years, has Britain still not ratified? The sense is that, as with all matters cultural, which end up low down in the political pecking order, it has simply neglected to do so. It is high time that the Government put this right. Continuing conflict and indeed unfolding events give an urgency to this. I hope that the DCMS takes a lead on this issue and presses for parliamentary time to be made available so that the convention can be ratified as soon as possible.

Education: English Baccalaureate Certificate

Earl of Clancarty Excerpts

Monday 14th January 2013 Lords Chamber

Asked By

[The Earl of Clancarty]

To ask Her Majesty’s Government whether they will reconsider their decision to omit certain arts subjects from the proposed English Baccalaureate Certificate.

[The Earl of Clancarty]

My Lords, I very much welcome the opportunity to have this important and timely debate and I thank the Library for its briefing note. I must attach a disclaimer to the terms of this debate, which is: “Will the Government reconsider the omission of arts subjects from the EBacc, if the reforms go ahead?”. A growing number, and I count myself among them, believe that the EBacc is severely flawed and, at the very least, should be postponed pending fuller consultation over all its aspects. However, I will come back to the wider debate later.

This Government continue to underestimate the significance of the arts and creative industries, culturally, socially and economically. It is perhaps no surprise that the ongoing reduction of investment in the arts signals a downgrade now being extended to the arts in school education. School education is so important, not only as a preparation for, but as the template of, the wider world of work including arts, design, manufacturing and so on. Due to this progression from school through to work, the implications of these reforms for the individual, wider society and industry are enormous.

High-profile arts leaders and practitioners have said they believe that in the long term the effect of these reforms could be more significant even than the cuts to public subsidies. Indeed, as the Minister will be aware, there has been a huge barrage of concern and criticism over the omission of arts subjects from the EBacc from both the subsidised and commercial wings of the arts—from film, theatre, the visual arts, including public museums and art dealers, music, dance, craft and design, and tellingly too from others outside the arts.

I am spoilt for choice from the many quotable things people have said in recent weeks, but I will pick out a few. The artist Grayson Perry said:

“If you think about the opening ceremony of the Olympics and all the things that we think of to symbolise modern Britain—from the Beatles to the internet—so many of them are based in creativity … The government is not looking at the country as it actually is: a place that is brilliant at fashion, broadcasting, design, the arts, drama, film”.

Julian Bird, chief executive of the Society of London Theatre and the Theatrical Management Association in an open letter to the Secretary of State said:

“Managers of the UK’s … theatres are concerned that not including the arts in the proposed EBacc will have a negative impact on broader skills development”,

and,

“social mobility … the current proposals threaten the supply of talent needed to maintain one of the few industries where the UK is currently internationally regarded as a world leader”.

Last month, British designers including Jonathan Ive, Stella McCartney and Terence Conran, as well as design companies and universities, wrote to the Secretary of State saying:

“The innovation that fuels UK growth relies on knowledge, the skilled use of materials and the command of ideas. Design and the arts are vital components of an accessible and varied”—

note the word “varied”—

“education system that can provide these skills. The prospect of future generations growing up considering these subjects as unimportant is simply incomprehensible”.

The Secretary of State needs to listen carefully to this criticism, because at present the Government are displaying a blasé attitude that does not reflect reality. They say that pupils are still free to take arts subjects at GCSE level and schools are free to offer them, but the 20% or so left in the school timetable to teach non-EBacc subjects is like being thrown crumbs. Moreover, school governors have told me that once a subject no longer contributes to the league tables, it slips down the priorities for resources.

Further evidence that neglect is already happening comes from research commissioned from Ipsos MORI by the Department for Education, available on its website. The arts are already hardest hit, with 23% of teachers whose schools have withdrawn a subject—about one-quarter of the total polled—saying they can no longer offer drama or performing arts, 17% saying that art has been withdrawn and 14% that design or design technology has been withdrawn, trends confirmed by figures from the Joint Council for Qualifications in a Commons Written Answer to Dan Jarvis on 15 October. If this is already the result of the introduction of the EBacc as a performance measure, then it is not difficult to imagine the deepening of this effect once the formal qualification is in place. Most damning of all, perhaps, is the DfE research stating:

“Sixty-three per cent of teachers surveyed whose schools do not offer the EBacc combination to all pupils say this is because they do not offer it to lower-attaining pupils”,

a crystal-clear expression of the lower-class status that excluded subjects now have. The Government may want to move away from league tables but the effect will remain the same. There will be other serious effects if these reforms go through as they are. Many have pointed out that it will be children from poorer homes who will be disproportionately deprived of exposure to the arts.

The Secretary of State seems to believe that the EBacc is what universities and business leaders want, yet the representative body Universities UK gave this written evidence to the Education Committee’s inquiry into the EBacc in 2010:

“Given that the EBacc emphasises traditionally academic subjects, it has been argued that this could serve to further widen the gap between academic and vocational subjects. There is also concern that the EBacc could encourage a shift away from arts-related subjects … In general … there appears to be a limited appetite to include the award as part of a university’s entry requirements or selection criteria”.

I stress the phrase “a limited appetite”. I therefore wonder how much the Russell Group’s guidance that was set out in 2011, rather than indicating what universities would like, has been a kind of self-fulfilling prophecy, because some universities will quite logically consider less those subjects that are already starting to be marginalised.

The issue of overspecialisation at too early an age is an important one. In its report First Steps: A New Approach to our Schools, the CBI, which is critical of the EBacc in many ways, talks about the need for what it terms a “rounded and grounded” pupil, echoing what those in the arts also say. Rosy Greenlees, executive director of the Crafts Council, tells me that while not wholly against a “techbacc”—and I would welcome some more detail from the Minister on the Government’s plans in this direction—she is worried about the possible reinforcing of what she calls the,

“traditional divide between the practical and the academic which is outmoded”.

On Radio 4’s “Start the Week” last November, which was devoted to art and design, Sarah Teasley, tutor in the history of design at the Royal College of Art, spoke about the need to push regional innovation through connections between research institutes and regions, between art and design colleges and local SMEs. There is a real need to bring arts, sciences and technology into a much more intimate relationship, and this must start in schools. Subjects need to be able to talk to each other within the curriculum much more than they do at present, but to do so they need also to retain equality and integrity. It is not enough to simply say, as the Government have done, that EBacc subjects can be taught “creatively”.

In terms of the larger structure of the EBacc, art and sport—which also feel that they are going to be neglected—need at this stage to see each other as allies in the interests of wider reform, not competitors for a position in what is being increasingly understood as a limiting and unacceptable hierarchy of subjects. What, too, about computer science, itself so crucial to the development of today’s creative industries, business, economics, sociology, and religious studies? The list goes on. There is concern, too, about the effective downgrading of the modular system—a system that many argue favours innovation and creativity—an action, as the National Children’s Bureau and other charities point out, that will also hugely discriminate against disadvantaged children and those with learning and other disabilities. For many of the reasons that I have discussed, Tony Kelly of the Education School at Southampton University says that the EBacc will be a distraction from the fundamental mission of schools to create well-being for students—not solely economic well-being but the development of the ability to turn opportunity into betterment.

The support for withdrawing the EBacc is now backed by teachers, parents, unions, national museums, major charities, the National Governors Association, academics and universities, Peers, MPs and former Education Secretaries, including the noble Lord, Lord Baker of Dorking. Seeing as the consultation for key stage 4 has been held very much in public, I am tempted to say that the Government hardly need to look at the results to see how institutions and many people now feel. The Government must give very careful consideration to the consultation and report back quickly. Although we have had the music plan, we are still awaiting the response of the Government to last year’s Henley report on cultural learning, which backed the inclusion of arts within the EBacc.

One of the frustrating things that so many working in the arts now feel is that we are living through a time when the arts and creative industries have become central to our society, central to our culture and, as I said at the beginning of this debate, hugely significant economically. They could of course be more so, but the arts are in real danger of taking a backward turn at a time when the Government should be seizing the day and capitalising on what is now in place but which might well be lost if the Government do not change tack.

[Lord Newby]

My Lords, for the benefit of the House, I remind noble Lords that this is a time-limited debate and all speeches are limited to three minutes.