In recent years, Britain’s performing arts sector has faced a seemingly insurmountable number of challenges.
Alongside the global recovery from the Covid-19 pandemic and inflationary pressures wrought by Russia’s war in Ukraine, British cultural institutions have faced a unique obstacle: Brexit.
For a sector that earns over 20% of its income from international touring, the policy implications for Britain’s exit from the European Union continues to threaten the future of UK orchestras. Alongside new rules around instrument transportation, work permits and customs paperwork, from 1 April 2024 UK orchestras will no longer benefit from tax relief on performances in the European Economic Area (EEA).
At present UK orchestras are able claim 50% tax relief on performances in the EU, Norway, Iceland and Lichtenstein, a policy that has kept European touring viable for British orchestras. However, post-Brexit, this tax relief contravenes World Trade Organization (WTO) policy and has already been removed from similar sectors, such as film, TV and video games.
The policy has prompted vocal criticism from industry with the Association of British Orchestras warning that the government “risks making European touring financially unviable”. The orchestral trade body has also warned of the domestic implications of the policy, stressing that foreign-earned income allows orchestras to invest in UK work, including developing the country’s skills and talent pipeline and contributing to its artistic output.
With British orchestras still reeling from the Covid-19 pandemic and last year’s funding cuts, it seems that greater challenges lie ahead, highlighting, once again, the need for a government that places the creative sectors at the heart of policymaking.
