Chancellor Announces New Permanent Theatre Tax Relief Rate of 40% and 45% For Touring Productions

The Chancellor has announced a new permanent rate for Theatre Tax Relief of 40% and 45% for productions that tour. Previously, it was announced that the rate would taper from April 2025 (to 35% and 30% respectively) and a return to the pre-pandemic rate (25% and 20%) in 2026. This new permanent rate will unlock more and bigger productions creating more jobs in the UK's world-class theatre sector.

Equity’s General Secretary, Paul W Fleming, said, “This Budget began to recognise that the arts and entertainment are fundamental to future UK prosperity. We welcome the Chancellor’s support for tax reliefs, and investment in arts infrastructure.”

“But these come in the context of two decades of austerity in our industries. Local government has been forced to make arts cuts of over £1bn since 2010, with some bankrupt councils losing all of their arts funding.”

“The workforce bears the brunt of cuts through job losses, shuttered venues and strained public services.”

“Those who fall through the gaps can no longer rely on a safety net – as the Universal Credit Minimum Income Floor pushes Equity members into financial hardship or out of the industry.”

 “Our members are clear; they want to see a pay rise, not tax cuts which favour the wealthy at the expense of the public good. The government should invest available funds in a roadmap to restore the arts in every part of the UK.”

“Regardless of what the Chancellor has in his red box, Equity will continue to fight and win for our members by building union power.” 

Eleanor Lloyd, President of Society of London Theatre, said: ‘Our members have the ambition and creativity to maintain and grow our dynamic, world-leading sector. We can only do this with the right policy and fiscal environment that will enable us to unlock wider potential. Today's announcement will enable us to unlock further private investment, and result in more and bigger productions. This bolder programming will in turn create more jobs and reach more audiences. Making the relief permanent prevents the cliff-edge of the TTR taper, which our members predict would have shrunk the theatre sector by almost a third. TTR is an investment in our world-class theatre sector, which is integral to the UK's place on the global stage.'

Stephanie Sirr, Joint President of UK Theatre, said, ‘This new permanent rate of Theatre Tax Relief will be transformative for regional producing theatres. It provides the financial stability we desperately need in the context of squeezed public investment and rising costs. It will also keep touring theatre on the road, meaning communities across the country have access to world-class productions. This results in investment in local communities up and down the country, as for every £1 spent on a theatre ticket, we know that £1.40 is spent in local economies, generating local employment and economic growth.'

Andrew Lloyd Webber, composer and theatre producer, said, ‘This is a once in a generation transformational change that will ensure Britain remains the global capital of creativity.'

Sir Cameron Mackintosh, producer and West End theatre owner, said, ‘The new permanent rate of TTR is a tremendous endorsement of the vital contribution that the theatre makes to the British economy as well as the huge arts industry in this country. The current vibrancy of the West End proves this is money well spent and now theatre producers can confidently risk producing exciting new work and hopefully find the next global hits that make British Theatre the envy of the world.'

Sir Sam Mendes, Caro Newling O.B.E, Co-Founders, Neal Street Productions, said, ‘The higher rate of theatre tax relief is fundamental to our ability to make productions. It has enabled us to commission new work, often partnering with producing houses and colleagues in the commercial sector. They are all productions of scale.  The Hills of California, The Motive and the Cue and The Lehman Trilogy, Hamnet and a nationwide, eighteen-month, tour of Charlie and the Chocolate Factory. Most have enjoyed seasons in both not-for-profit and commercial sectors, with Broadway and international tours thereafter. TTR is the singular factor in promoting both the confidence to be properly innovative and investors to join in the endeavour. We welcome the Government's plans to make the higher rate permanent, as it will bolster the industry's ability to thrive.”

Kate Varah, Executive Director of The National Theatre, said, ‘We are thrilled that the Government has committed to a new permanent higher rate of Theatre Tax Relief. All in the sector have united to work hard to highlight the transformative benefits this will bring to subsidised, independent, and commercial theatres. This is extremely welcome news which will reinforce the UK as a global cultural leader, support jobs and growth, and delight and inspire millions of people every year.'

Ted Stimpson, Group Chief Executive Officer of Ambassador Theatre Group, said, ‘Today's announcement demonstrates the UK Government's leadership in acknowledging the immense economic, social, and cultural significance of theatre to communities nationwide. The new permanent rate of Theatre Tax Relief will serve as a catalyst for innovation, creativity, and the continued growth of our world-leading theatre sector. This investment will preserve our cultural heritage and foster an environment where the arts can thrive, creating thousands of highly-skilled jobs and ensuring that audiences across the nation continue to enjoy compelling theatre.' 

Nica Burns OBE, Chief Executive, Nimax Theatres Limited, said, ‘Theatre tax relief has made the most significant contribution to the success of the UK theatre sector since the formation of the arts Council in 1946. It enables private investment into the theatre sector which not only creates outstanding productions and additional jobs but also repays money back into the Treasury.'

Tamara Harvey and Daniel Evans, Royal Shakespeare Company, Co-Artistic Directors, said, ‘The important news of a new permanent rate of Theatre Tax Relief is a critical lifeline for the UK's theatre industry. It shows that our government recognises all that theatre delivers for communities nationally and for the UK economy and will provide stability at a time of rising costs alongside a challenging funding landscape.

‘With this support we can create the most exciting theatre for our audiences, incentivising private investment, and increasing the UK's global attractiveness for foreign investment. In turn this creates highly skilled jobs and generates wider economic benefits.

‘So much of the RSC's work is made possible by the higher rate of Theatre Tax Relief including our multi-award winning My Neighbour Totoro. This production attracted significant international investment and employed high numbers of freelancers, theatre staff and other industry organisations. Over 286,000 tickets have been sold so far, a quarter coming from international sales, with the box office income alone generating a substantial amount of VAT for the Treasury. We thank the Government for investing in our world-leading sector'. 

Eleanor Lang, Executive Director, Stratford East, said, ‘This new permanent rate of TTR will enable Strafford East to continue producing bold and innovative productions, such as The Big Life, which would not have been possible without it. We estimate that the production will bring about 20,000 people to Stratford, spending time and money in our local community. This transformative commitment will support communities up and down the country by unlocking more and bigger productions and creating more jobs in our world-class theatre sector.'

Henny Finch, Executive Director, Donmar Warehouse, said, ‘The news that Theatre Tax Relief at 40% will continue in perpetuity is a lifeline for us. It directly supports us to make bigger and bolder work for our audiences at the Donmar, in the West End and beyond, including employing hundreds of artists each year. We are very grateful to the Government for their investment in our world-class sector.'

Tom de Keyser, Executive Director, ROYO, said, ‘This commitment by the Chancellor, Treasury and DCMS will directly cause a huge increase in our output over the coming years. We will produce more productions than initially planned, be able to procure more investment from outside the UK, and will mean we can present productions for longer engagements, reaching many more parts of the country. The impact of touring stretches beyond just the theatres visited, but directly grows regional nightlife economies and drives the variety and diversity of local culture.'

Michael Harrison, theatre producer, said, ‘Despite the many and varied financial challenges the government currently faces, it's heartening they've not only listened to our industry but also responded with a firm commitment that will have a direct impact on jobs and growth in our sector.'

Sonia Friedman, theatre producer, said, ‘SFP is delighted that the government has recognised the seismic importance of fixing Theatre Tax Relief at a higher level than planned. This provides a vital and game-changing contribution to the financing and production of UK theatre, encouraging investment in this world-class industry with all the benefits to the wider economy of increased hospitality and tourism as well as the myriad of benefits to society in general.  Without this, it is no exaggeration to say that our whole industry would be under threat.  With it, we can continue to grow and improve on our contribution to the arts, society and to the economy.' 

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