Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the estimated Exchequer impact of the two-year tapered rate increase of Theatre, Orchestra and Museums and Galleries Exhibitions Tax Reliefs, published in the Autumn Budget and Spending Review 2021: Policy costings on 27 October 2021, what was the Exchequer impact of the uplifted rate for 2021-22.

The Government recognises the value of the UK’s world leading creative industries and arts sectors.

At Autumn Budget 2021, the Government temporarily increased the headline rates of theatre tax relief (TTR), orchestra tax relief (OTR), and museums and galleries exhibition tax relief (MGETR) in recognition of the impact of the Covid-19 pandemic on these sectors.

The headline rates of relief for the TTR and the MGETR were temporarily increased from 20 per cent (for non-touring productions) and 25 per cent (for touring productions) to 45 per cent and 50 per cent. From 1 April 2023, the rates will be reduced to 30 per cent and 35 per cent and will return to 20 per cent and 25 per cent on 1 April 2024. OTR rates temporarily increased from 25 per cent to 50 per cent, reducing to 35 per cent from 1 April 2023 and returning to 25 per cent on 1 April 2024.

In the year 2021-2022, £38 million of TTR was paid in response to 620 claims, representing 2,055 productions. £10 million of OTR was paid in response to 100 claims, representing 510 productions. £9 million of MGETR was paid in response to 145 claims, representing 1,060 exhibitions.