Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the reduction from April 2023 of (a) Orchestra and (b) Theatre Tax Relief on the financial sustainability of the cultural sector.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Government recognises the value of the UK’s world leading creative industries and arts sectors.
Since theatre tax relief (TTR) was introduced in 2014, £392 million of relief has been paid out, supporting 17,820 productions as of the year 2021-22. £62 million of orchestra tax relief (OTR) has been paid out since it was introduced in 2016, supporting 2,640 productions as of the year 2021-2022.
At Autumn Budget 2021, the Government temporarily increased the headline rates of TTR and OTR in recognition of the impact of the Covid-19 pandemic on these sectors. The headline rate of relief for TTR was 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. The headline rate of OTR was 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.
Whilst the Government keeps all tax reliefs under review, the Government is not planning to expand the qualifying costs for OTR or TTR.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 December 2022 to Question 105279 on Orchestras and Theatre: Tax Allowances, what the average claim amount was for the 15 per cent of valid claims for Theatre and Orchestra Tax Reliefs that were not paid within 28 days of receipt.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
HMRC is not able to disclose how much relief is currently outstanding to companies. This data is not available until the claims have been reviewed and HMRC is able to confirm how much payment is due.
We do not calculate average claim amounts for those claims which were not processed within 28 days, as any figures could be misleading. They would not be representative of the range in size and complexity of claims we receive, nor demonstrate the range of reasons why these claims are not paid within 28 days. Such reasons range from simple administrative issues such as missing payment details, to more complex issues requiring the claim to be reviewed in more detail before payment can be released.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Answer of 12 December 2022 to Written Question 105279 on Orchestras and Theatre: Tax Allowances, what proportion of the 85 per cent of valid claims for Theatre and Orchestra Tax Reliefs which were paid within 28 days of receipt were (a) Theatre Tax Relief and (b) Orchestra Tax Relief.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
HMRC aims to pay claims for all tax reliefs as soon as possible. Since 1 April 2022, 85 per cent of valid claims for Theatre and Orchestra Tax Reliefs have been paid within 28 days.
Of those, 85 per cent are Theatre Tax Relief and 15 per cent are Orchestra Tax Relief.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Answer of 12 December 2022 to Written Question 105279 on Orchestras and Theatre: Tax Allowances, what the average wait time was for the 15 per cent of valid claims for Theatre and Orchestra Tax Reliefs who were not paid within 28 days of receipt.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
HMRC constantly monitors payment times. It is important that these reliefs are easy to access and meet the needs of the claimant organisations. However, this must be balanced against the need to ensure that taxpayer money is not paid out in respect of fraudulent or incorrect claims.
We are unable to provide an average wait time for claims which were not processed within 28 days, as any figures could be misleading, given the range of reasons why these claims are not paid within 28 days. These range from simple administrative issues such as missing payment details, to more complex issues requiring the claim to be reviewed in more detail before payment can be released.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many meetings on the impact of the cost of living crisis on charities his Department had with the Department for Digital, Culture, Media and Sport in 2022.
Answered by James Cartlidge - Shadow Secretary of State for Defence
We recognise this is a worrying time for many organisations that are facing pressures due to the cost-of-living crisis and the Treasury regularly engages DCMS on policy matters that impact sectors for which DCMS are responsible, including charities. We do not hold specific data on the number of times this was discussed in meetings during 2022.
To tackle the cost-of-living crisis, the Government is already taking very significant action across the United Kingdom. Through the Energy Bill Relief Scheme (EBRS), the government is providing a discount on wholesale gas and electricity prices for all non-domestic consumers, including charities. This is a temporary measure that protects them from soaring energy costs and applies to energy usage for six months from 1 October 2022 to 31 March 2023. The ongoing HMT-led review of the EBRS will determine support for UK non-domestic energy consumers beyond these six months, with the aim of reducing the public finances’ exposure to volatile international energy prices from April 2023. The Chancellor will announce the outcome of this review shortly to ensure businesses have sufficient certainty about future support before the current scheme ends in March 2023.
This builds upon the support for charities that the Government announced during the pandemic, which included a £750 million dedicated funding package that helped organisations across the UK respond to the impact of Covid-19.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the review of the Energy Bill Relief Scheme has concluded; when he plans to announce the Government's decisions on support for vulnerable non-domestic customers beyond March 2023; and if he will make a statement before the House rises for recess on 20 December 2022.
Answered by John Glen
Through the Energy Bill Relief Scheme (EBRS), the government is providing a discount on wholesale gas and electricity prices for all non-domestic consumers. This is a temporary measure that will protect them from soaring energy costs and will apply to energy usage for six months from 1 October 2022 to 31 March 2023.
The ongoing HMT-led review of the EBRS will determine support for UK non-domestic energy consumers beyond this six months, with the aim of reducing the public finances’ exposure to volatile international energy prices from April 2023. The Chancellor will announce the outcome of this review in the New Year to ensure businesses have sufficient certainty about future support before the current scheme ends in March 2023.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the amount of funding due to organisations through (a) theatre tax relief and (b) orchestra tax relief which was outstanding as of 7 December 2022.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Theatre and Orchestra Tax Reliefs are Corporation Tax Reliefs available to companies that are carrying out qualifying activity.
HMRC aims to pay claims for all tax reliefs as soon as possible. Since 1 April 2022, 85 per cent of valid claims for Theatre and Orchestra Tax Reliefs have been paid within 28 days of receipt.
Where a claim is received but is identified as requiring further review, HMRC may open an enquiry and ask for additional information.
As per HMRC’s published statistics, in 2021-22 £38 million of Theatre Tax Relief and £10 million of Orchestra Tax Relief was paid out.
HMRC is not able to disclose how much relief is currently outstanding to companies. This data is not available until the claims have been reviewed and HMRC is able to confirm how much payment is due.
HMRC constantly monitors payment times. It is important that these reliefs are easy to access and meet the needs of claimant organisations. However, this must be balanced against the need to ensure that taxpayer money is not paid out in respect of incorrect or fraudulent claims.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to reduce the average time period between (a) claims for and (b) payment of (i) theatre tax relief and (ii) orchestra tax relief.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Theatre and Orchestra Tax Reliefs are Corporation Tax Reliefs available to companies that are carrying out qualifying activity.
HMRC aims to pay claims for all tax reliefs as soon as possible. Since 1 April 2022, 85 per cent of valid claims for Theatre and Orchestra Tax Reliefs have been paid within 28 days of receipt.
Where a claim is received but is identified as requiring further review, HMRC may open an enquiry and ask for additional information.
As per HMRC’s published statistics, in 2021-22 £38 million of Theatre Tax Relief and £10 million of Orchestra Tax Relief was paid out.
HMRC is not able to disclose how much relief is currently outstanding to companies. This data is not available until the claims have been reviewed and HMRC is able to confirm how much payment is due.
HMRC constantly monitors payment times. It is important that these reliefs are easy to access and meet the needs of claimant organisations. However, this must be balanced against the need to ensure that taxpayer money is not paid out in respect of incorrect or fraudulent claims.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many organisations have been waiting for more than (a) six weeks, (b) three months and (c) six months to receive (i) theatre tax relief and (ii) orchestra tax relief.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Theatre and Orchestra Tax Reliefs are Corporation Tax Reliefs available to companies that are carrying out qualifying activity.
HMRC aims to pay claims for all tax reliefs as soon as possible. Since 1 April 2022, 85 per cent of valid claims for Theatre and Orchestra Tax Reliefs have been paid within 28 days of receipt.
Where a claim is received but is identified as requiring further review, HMRC may open an enquiry and ask for additional information.
As per HMRC’s published statistics, in 2021-22 £38 million of Theatre Tax Relief and £10 million of Orchestra Tax Relief was paid out.
HMRC is not able to disclose how much relief is currently outstanding to companies. This data is not available until the claims have been reviewed and HMRC is able to confirm how much payment is due.
HMRC constantly monitors payment times. It is important that these reliefs are easy to access and meet the needs of claimant organisations. However, this must be balanced against the need to ensure that taxpayer money is not paid out in respect of incorrect or fraudulent claims.
Asked by: Baroness Keeley (Labour - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what is the average length of time between organisations (a) claiming and (b) receiving (i) theatre tax relief and (ii) orchestra tax relief.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Theatre and Orchestra Tax Reliefs are Corporation Tax Reliefs available to companies that are carrying out qualifying activity.
HMRC aims to pay claims for all tax reliefs as soon as possible. Since 1 April 2022, 85 per cent of valid claims for Theatre and Orchestra Tax Reliefs have been paid within 28 days of receipt.
Where a claim is received but is identified as requiring further review, HMRC may open an enquiry and ask for additional information.
As per HMRC’s published statistics, in 2021-22 £38 million of Theatre Tax Relief and £10 million of Orchestra Tax Relief was paid out.
HMRC is not able to disclose how much relief is currently outstanding to companies. This data is not available until the claims have been reviewed and HMRC is able to confirm how much payment is due.
HMRC constantly monitors payment times. It is important that these reliefs are easy to access and meet the needs of claimant organisations. However, this must be balanced against the need to ensure that taxpayer money is not paid out in respect of incorrect or fraudulent claims.