Arts: Business Rate Relief

Baroness McIntosh of Hudnall Excerpts

Thursday 10th March 2016 Lords Chamber

[Viscount Younger of Leckie]

I note the noble Earl’s concerns but it may give him some comfort to know that the Government recognise the importance of the charitable sector and that the stringent management of costs in managing charities can make a critical difference to their viability. The Government also understand that arts and culture generates 0.4% of the UK’s GDP, as highlighted by the Centre for Economics and Business Research. Museums and galleries are a key motivator for encouraging tourism. We committed that from 2017 the business rate system would better reflect our modern economy by providing clearer billing, better information-sharing and a more efficient appeals system.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, I declare my registered interests in charities, including membership of the board of the Royal Shakespeare Company, which is currently able to take advantage of tax relief on production costs, as indeed are all other performing arts companies. Is the Minister aware that the benefit of this very welcome and indeed enlightened tax reform will be entirely lost if mandatory business rate relief is withdrawn? Can he reassure the House that the Government are not proposing to give with one hand and take away with the other?

[Viscount Younger of Leckie]

I cannot prejudge for the noble Baroness the result of the review. However, when we launched it, we did say that we recognise that some sectors, such as charities, play an important part in the community and that the Government have no intention of increasing business rates for those deserving of relief.