Statement
HODGE REVIEW OF ARTS COUNCIL ENGLAND
Baroness Hodge’s Independent Review of Arts Council England sets out with clarity the importance of arts and culture to the UK.
For the Academy of St Martin in the Fields, we particularly welcome the recommendation that “The government should consider amending the orchestra tax relief to cover the international costs of touring, which have been exacerbated by Brexit, such as the costs of work permits, visas and transport.”
We strongly support the critical need for robust public funding for arts and culture, and yet the Academy of St Martin in the Fields (ASMF) has itself followed an independent path and never been a recipient of regular ACE funding. As a result, we are particularly interested in those recommendations which help advance more independent funding models, support innovative and new approaches to sustaining the sector, and acknowledge and champion the vital role that organisations such as ASMF play on the world stage.
We are also glad to see reflected the arguments we and others have made about the importance of international touring: “Touring matters to all cultural disciplines. Orchestras have been particularly badly hit by the post-Brexit decision to remove any costs associated with working in Europe from being eligible for tax credits. So the costs of visas, work permits, costs associated with customs requirements have all been deemed inadmissible for tax credit purposes because they do not represent UK-based expenditure. Touring abroad is an effective soft power tool, but touring in Europe is especially important to orchestras because the concerts are very successful and profitable. Orchestras use those profits to subsidise their work in the UK from putting on concerts, to education work with young people.”
Since the recent change that removed the eligibility of international work for orchestra tax relief, we have been making the case for the value that international touring brings back to the UK. We are encouraged to see this recognised as a priority, and pleased to highlight again how ASMF believes this tax relief offers clear value for the country:
- Generating income: Every £1 of orchestra tax relief we receive for international projects enables us to generate approximately £10 in earned and fundraised income from around the world, most of which is returned to the UK.
- Supporting UK-based creative freelancers: Orchestra tax relief allows us to take greater artistic and financial risk on concerts and tours outside the UK. In the 2023/24 season, more than £3.2 million in income (alongside over £500,000 in fundraising) was generated internationally and paid back into the UK economy in this way.
- Investing in UK-based work: Orchestra tax relief enables activity that helps us remain financially sustainable. As a charity, we reinvest this income back into UK-based concerts and community programmes, many of which are loss-making but vital to reaching audiences and participants across the country.
- Promoting UK arts and culture: When we perform internationally, we actively advocate for UK arts and culture, engaging with dignitaries and cultural leaders to showcase the quality of British music-making.
- Supporting UK tourism: The orchestra’s international profile encourages audiences from around the world to visit London, attend our concerts at the Church of St Martin-in-the-Fields, and contribute to the wider UK economy.
Colleagues who have received, currently receive, or hope to receive regular support from Arts Council England are well placed to comment on the recommendations relating directly to ACE funding.
At a time when public finances are under pressure and funding for the arts is stretched, mechanisms such as tax relief that enable greater activity while delivering a strong return to the UK are especially important. They allow public funding to be targeted, then, to where it is absolutely necessary and can have the greatest impact for audiences and communities. For these reasons, we urge the government to reverse the removal of international work from orchestra tax relief eligibility in line with the recommendations of the Hodge Review.