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MU Calls for Investment in Musicians Following Budget Announcement

Whilst the budget announcement did offer a welcome extension to the orchestras tax relief and business rate relief for venues, the choice not to take forward further music tax incentives and the hike in VAT could have a negative impact on the sector.

Published: 28 October 2021 | 11:34 AM
Rishi Sunak, Chancellor of the Exchequer holds up his red suitcase outside 10 Downing Street
We also ask that the DCMS ensures that any new money actively benefits musicians and other workers through Arts Council grants or similar. Photo credit: Shutterstock

Chancellor of the Exchequer, Rishi Sunak delivered his Budget this week with headlines including a rise in the living wage and extra funding for the NHS.

There was also a welcome extension of the orchestras tax relief and business rate relief for venues. Tax relief for touring theatre productions has also increased to 50% from 45%.

The MU agrees with UK Music, however, that the Chancellor “missed an opportunity to not take forward further music tax incentives to help boost jobs and economic growth.” Hikes in VAT from next April could also have a negative impact on live events.

The Chancellor also announced a ‘real terms’ rise in spending for all Government departments. The Labour Party have responded to this by asking the Government to clarify how much of this represents new funding, as it appears that much of it amounts to recycled money that had already been announced.

We also ask that the Department for Culture, Media and Sport ensures that any new money actively benefits musicians and other workers through Arts Council grants or similar, since rate reliefs are welcome but primarily benefit employers.

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