Leading arts industry figures have written a letter to the Chancellor of the Exchequer, Rishi Sunak, to demand that the reduced 5% VAT rate continues on ticket sales, amidst concerns that it could return to 20% shortly.

Industry bodies, including the Society of London Theatre and UK Theatre and the Music Venue Trust, have explained how crippling this increase would be for the recovery of live entertainment. The VAT rate was reduced in July 2020 but March’s budget could revert this back, before many venues have been able to benefit.

The letter states: “If the 5% VAT rate remains in place once lockdown restrictions are eased and ticket sales resume, our sectors would benefit from the retention of hundreds of millions of pounds, money we desperately need to build back as we recover. The reduced 5% VAT rate has the potential to be a lifeline for our industries, but it will have been pointless if it is scrapped just before we can get back to selling tickets for events.”

The Digital, Culture, Media and Sport (DCMS) Committee recommended a three-year extension to the 5% VAT policy in its report in July.