Select committee: Digital, Culture, Media and Sport Committee
Recommendation 15
Third Report - Impact of COVID-19 on DCMS sectors: First Report
Published 23 Jul 2020
Paragraph 64
Addressed to Department for Culture, Media and Sport
Digital, Culture, Media and Sport Committee Impact of Covid-19 on DCMS sectors All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
To further combat the negative effects of closure, and to stimulate long-term recovery, the Government should introduce other fiscal measures. We recommend the cut in VAT on ticket sales for theatre and live music be extended beyond January 2021, for the next three years. The Government should increase Theatre Tax Relief to 50% for the next three years and broaden the definition of ‘core expenditure’ in line with the industry’s proposals. It should introduce a Music Tax Relief, modelled on existing reliefs such as the Orchestra Tax Relief. The Government should also develop a system to save ‘Assets of Cultural Value’ along the lines of the regime for ‘Assets of Community Value’. This would allow a moratorium on the sale of a building while stakeholders seek an alternative bidder to maintain the asset as a cultural business. The Government should also build on recent ‘Agent of Change’ planning reform to protect cultural assets by tightening planning regulations around change of use from venues or music studios to residential and other developments.
From: Digital, Culture, Media and Sport Committee, Third Report - Impact of COVID-19 on DCMS sectors: First Report (HC 291), paragraph 64, 23 July 2020
Government response
The government responded to the whole report on 14 October 2020 (deadline 23 September 2020).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response sets out support already provided across DCMS sectors, agrees with the recommendation for a national domestic tourism campaign, and on several other recommendations says it is considering options, working with the sector, or would need further evidence.
- On tax reliefs for theatre and music, the government says it "keeps all tax reliefs under review" and that HM Treasury "would need to assess" any new relief for effectiveness, cost to the Exchequer, wider economic impacts and ability to stand up to abuse.
- On extending the furlough scheme for the creative industries, it states that "there will be no further extensions or changes to the Coronavirus Job Retention Scheme", which closes at the end of October, and points to a new Job Support Scheme from 1 November.
- On museum insolvency, the government says it is "looking at legislative, and non-legislative, options" to prevent the dispersal of collections.
- On a 'Creators Council', it says it "would need a clear steer from the sector" and "robust evidence" of a gap in what the existing Creative Industries Council delivers, if the sector wishes it to consider the proposal.