ABO calls on chancellor to extend orchestra tax relief

The Association of British Orchestras (ABO) has today called on chancellor Rt Hon Jeremy Hunt MP to work to support the UK’s orchestral sector following the release of Arts Council England’s (ACE) 2023-26 Investment Programme decisions earlier this month.

The ABO is asking Hunt to extend the temporary 50% uplifted Orchestra Tax Relief (OTR) rate which commenced in October 2021 in response to the pandemic and is due to reduce to 35% in April 2023, returning to 25% in April 2024. Hunt, who is responsible for the UK treasury, as well as for raising revenue and controlling public spending, will be giving his Autumn Statement to Parliament later this week (17 November). 

Judith Webster, who joined the ABO as CEO yesterday, said: ‘We have acknowledged the difficult decisions that have been made in ACE’s National Portfolio 2023-26... However, whilst welcoming the continued investment in the UK’s classical music sector we are also deeply concerned by the impact of the removal from the funded portfolio for some organisations, and significantly reduced funding for others. We are particularly concerned with our members working in opera and contemporary music, where the biggest funding reductions have fallen... An extension to the 50% rate is the critical measure which will allow UK orchestras to rebuild income streams and plan confidently for the future.’

The association is calling for the current OTR rate to be continued for another year at least. The 50% OTR rate allows orchestras to claim an additional deduction to reduce their profits and therefore reduce the amount of Corporation Tax they will pay. The initiative has helped make projects viable, supporting activity and employment in the sector.

In addition to calling on the chancellor for an OTR extension, the ABO is working to support its members who have been removed from the Portfolio or have had their funding reduced for the 2023-26 Investment programme period.