Independent School Fees: VAT
Earl of Clancarty Excerpts(1 month, 1 week ago)
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Lord Livermore (Lab)
As always, I agree with everything that my noble friend says. All the comments that we have heard to date about the Government’s assessments being incorrect have been proven to be wrong. On the number of pupils who would move from one sector to another, that is absolutely in line with what the Government’s assessment said. On the amount of VAT that would pass through to the fees that parents pay, that is absolutely in line with what the Government said. On the number of schools that would close, that is absolutely in line with what the Government said. As my noble friend said, many councils now say that there has been no obvious impact from the addition of VAT on private school fees, and more pupils are receiving their first choice of school than they did last year.
Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)
We have plenty of time. We will hear from the noble Earl, Lord Clancarty, and then we will go to the Conservatives.
The Earl of Clancarty (CB)
My Lords, while I welcome any relief for the music and dance schools, does the Minister accept that the £45,000 cut-off point for a whole family is too low? When will that be reviewed? Should not the Government do everything possible to encourage UK students into our creative schools, including the Yehudi Menuhin School, whose remarkable students we had the privilege of hearing in the Lords last week?
Lord Livermore (Lab)
I am grateful to the noble Earl for his question. I agree with the second part of it that we should encourage people into those schools. In terms of what the Government can do, the Department for Education has already acted and adjusted its scheme, and it will continue to maintain that for the rest of the academic year.
Exports to the European Union
Earl of Clancarty Excerpts(5 months ago)
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Lord Livermore (Lab)
I agree with much of what the noble Lord says and agree wholeheartedly with the sentiment behind his question.
The Earl of Clancarty (CB)
My Lords, what is the timetable is for addressing these concerns? The creative industries have been hit particularly hard by Brexit, losing revenue in trade with Europe on daily basis. There is, or should be, a real urgency about this.
Lord Livermore (Lab)
I completely agree with the noble Earl. The creative industries, along with many others in our country, have been hit particularly hard by Brexit. We have identified the creative industries as part of the EU reset, identifying touring visas in particular as one of the priorities. The Prime Minister met with the President of the European Commission in Brussels on 2 October, and they have agreed to strengthen the relationship between the EU and the UK, putting it on a more solid and stable footing. We will now work with the EU to identify areas where we can strengthen co-operation for mutual benefit. Obviously, we recognise that delivering new agreements will take time, but we are ambitious, have clear priorities and want to move forward at pace.
Autumn Budget 2024
Earl of Clancarty Excerpts(5 months, 1 week ago)
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The Earl of Clancarty (CB)
My Lords, I, too, congratulate the noble Lord, Lord Booth-Smith, on his excellent maiden speech. I will speak on the arts and creative industries. I thank the Campaign for the Arts and the Authors’ Licensing and Collecting Society for their briefings. There is, of course, a one-hour debate on the effect of the Budget on this sector on Thursday, but this area is certainly important enough that both the Treasury and the DCMS should be addressed on the concerns that this sector has, not least because the Budget is a mixed bag for the arts and creative industries. Perhaps worse than that, the areas where funding is most urgently needed after so many years of underfunding have not been addressed and indeed could go backwards, which is disappointing for a Government who say they will support the arts.
There is good news, hopefully, for the national museums and galleries, but questions remain: how much additional funding will be made available and when will this happen? Will the Government further help other struggling arts and cultural organisations— the plight of Welsh National Opera immediately springs to mind—through the Arts Council and other funding bodies? I thank the Government for listening to concerns about VAT on specialist performing arts schools and confirming that courses covering the Music and Dance Scheme and the Dance and Drama Awards scheme will not attract VAT. I think that will be music to the ears of the noble Lord, Lord Berkeley.
The Earl of Clancarty (CB)
Literally—yes, indeed. However, as the Campaign for the Arts says:
“Realising the full ambition and potential of”
Labour’s growth plan, including for the creative industries,
“will take a level of resourcing and commitment beyond that which we have seen at this Budget”.
Starting with the noble Lord, Lord Fox, earlier in this debate, we have had numerous references to concerns about the survival of SMEs. Will the Government promise to keep an eye on, or even formally assess, the effects of their measures on SMEs? This is hugely important for the creative industries after being hit so hard by both Brexit and Covid.
The director of the Museums Association, Sharon Heal, said that
“the urgent needs of local and regional museums and galleries have not been addressed in this budget”,
and the Minister should be aware that the situation for civic museums is sufficiently urgent that a programme of emergency funding was asked for before the Budget. Birmingham Museums Trust said that
“this budget leaves us worse off and we are already in a dire financial situation in Birmingham”.
Similar arguments can be made about our libraries across the country, as the noble Lord, Lord Shipley, referred to, and I agree with everything that the noble Lord, Lord Whitty, said about a new basis for local authority funding. For authors, there is disappointment that the public lending right has not been addressed, seeing that there has been no increase in PLR in the last 10 years. Our own £6 million fund pales in comparison to Germany’s £14 million annual pot. Will the Government increase the fund to ameliorate these significant discrepancies?
The Government intend to cancel levelling up culture projects affecting the International Slavery Museum, the National Railway Museum, V&A Dundee and Venue Cymru. Why do the Government not consider these investments to be sufficiently, in their own words, “focused on the growth mission”? Have they assessed the impact of cancelling these investments?
The reduction in business rates relief will adversely affect the arts. The Music Venue Trust has calculated that this reduction will place an additional £7 million burden on 350 grass-roots music venues, put at risk more than 12,000 jobs and cost more than £250 million in economic activity. I understand there will be a consultation on business rates reform in 2026, but this will not help the hundreds of already struggling music venues that will undoubtedly be lost unless the Government rethink their decision or intervene with a ticket levy on big arena gigs that can help the small venues. While of course it is good news that the arts tax reliefs remain unchanged, it is disappointing that this has not been extended to choirs. Will the Government look again at this?
Finally, Creative Europe was a huge help to our arts and culture, yet we have never had any proper replacement for that funding; indeed, we ought to rejoin Creative Europe, which the rules allow us to do. On top of that, we now hear that the UK shared prosperity fund is to be reduced and phased out. Have the Government assessed the impact of this? Why is it happening before reforms have been completed?
Tax Reliefs: Theatre, Orchestra and Museums and Galleries Exhibition
Earl of Clancarty Excerpts(6 months, 1 week ago)
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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(1 year ago)
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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(1 year, 2 months ago)
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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(1 year, 7 months ago)
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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(1 year, 11 months ago)
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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(2 years, 1 month ago)
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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(10 years, 10 months ago)
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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.