London’s theatres have urged the Chancellor to maintain a tax relief scheme they say is “fundamental” to their success.
A study by the Society of London Theatre (SOLT) and UK Theatre found the higher rate of Theatre Tax Relief, which was increased in 2021 to boost the sector post Covid, had resulted in bigger productions and increases in audiences.
The survey of its members found 83% said the higher rate helped them put on bigger shows with almost two thirds (65%) saying they were producing more shows than they would if the relief rate was lower.
More than four fifths (83%) said they employed more staff thanks to the higher rate while Covent Garden’s Donmar Warehouse said it was able to invest in cutting edge sound technology for its production of Macbeth, starring David Tennant and Cush Jumbo, because of the tax relief.
The research also found theatres were planning ahead in the expectation of losing the higher rate with a reduction of almost a third in total number of productions and playing weeks planned for 2026.
Both organisations want Chancellor Jeremy Hunt to make the higher rate permanent in his Spring Budget on March 6.
Claire Walker, Co-Chief Executive of SOLT & UK Theatre, said the higher rate was “a highly effective economic stimulus”.
She said: “Our research shows that losing the higher rate will lead to fewer and smaller productions, which in turn means fewer jobs and a smaller contribution to local and national economies. That's why we urge the Government to retain the higher rate, which is fundamental to the success and growth of our world class theatre sector, and which will enable our members to continue to deliver enormous benefits throughout the UK.”
SOLT President Eleanor Lloyd said: “The higher rate of tax relief directly enables the creation of groundbreaking productions, the hiring of more talent, and brings exhilarating live shows to audiences.
“It is a fundamental enabler of the UK’s world-leading theatre, which simultaneously grows the economy and delivers transformative social good to communities across the country.”
