Theatre Tax Relief

Lord Bassam of Brighton Excerpts

Thursday 9th March 2023 Lords Chamber

Asked by

[Lord Bassam of Brighton]

To ask His Majesty’s Government what plans they have to maintain Theatre Tax Relief at the higher rate of 45 per cent/50 per cent for the next three years; and what assessment they have made on the impact of that relief in facilitating growth and investment in the sector.

[The Parliamentary Secretary, HM Treasury (Baroness Penn) (Con)]

My Lords, at the Autumn Budget 2021, the Government temporarily increased the headline rates of theatre tax relief to 45% and 50% in recognition of the impact of the Covid-19 pandemic on the sector. The Government acknowledge the concerns of the industry about the upcoming taper of the rates in April, and we will keep this matter under review.

[Lord Bassam of Brighton (Lab)]

My Lords, when I tabled this Question, I hoped that I would be helping the noble Lord, Lord Parkinson, in his annual debate with the Treasury over tax levels. The theatre tax sector generates nearly £2 billion extra value added to local economies. Does the Minister agree that reducing theatre tax relief at this stage would be premature and harm the sector’s recovery? What other forms of support does she envisage providing, given that audiences to theatres have recovered to only 73% of pre-Covid levels?

[Baroness Penn (Con)]

My Lords, I should remind noble Lords that the level of tax relief will remain enhanced from April at an elevated rate of 30% or 35%. I know that my noble friend Lord Parkinson and the Secretary of State have been engaging with the sector carefully to hear about its ongoing challenges and, as the noble Lord has said, they have fed that back across Whitehall and to the Treasury.