Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to change cultural tax reliefs to account for the cost of touring.

The Government recognises the importance of the creative industries, and supports the sector through a range of tax reliefs which are among the most generous in the world, providing over £2.4 billion of support in 2023–24.

The reliefs support the sector with the cost of touring. Orchestra Tax Relief (OTR) provides a generous rate of 45 per cent tax relief on orchestral production costs – including the cost of domestic touring, such as transport and accommodation – and provided £50 million of support in 2023-24. There is currently no other country in the world which offers such a tax relief for orchestras. Theatre Tax Relief (TTR) and Museums and Galleries Exhibition Tax Relief (MGETR), provide a 40% rate of relief to non-touring productions but offer higher rates of relief (at 45%) for touring productions.

The Government carefully considers the design of the creative sector tax reliefs to ensure they are well targeted, effective in achieving their policy objectives, and represent value for money for the taxpayer.