Sunak’s 2021 Budget and what it means for the theatre industry

Photo credit: Jessica Taylor/UK Parliament/Reuters

In a year that has seen the theatre industry face more challenges than ever before, Chancellor of the Exchequer, Rishi Sunak’s 2021 Budget has announced many plans that will finally give the theatre industry and its workers the support they need. 

Broad measures that will benefit theatre businesses and workers include an extension of the COVID-19 support scheme for salaried and self-employed workers, which will now run until September, and an extension of the cuts to business rates and VAT. £300 million is to be added to the Culture Recovery Fund, with theatres, museums, and live music venues set to receive £410 million to help them stay afloat whilst waiting to reopen in late spring or early summer. 

Whilst there was still no mention of the widely campaigned for government-backed coronavirus insurance for theatres, Sunak announced an extension to the Film and TV Production Restart Scheme, which provides coronavirus insurance. The theatre industry’s demand for modifications to the Theatre Tax Relief scheme has also not been addressed. 

However, today’s budget laid out points that should greatly help many theatre workers. This includes the extension of the Coronavirus Job Retention Scheme from the end of April to September; requiring employers to pay 10% of wages for the hours that staff don’t work in July, 20% in August, and 20% in September; the continuation of the Universal Credit £20/week uplift for another six months; and reassessing the eligibility of self-employed workers for the fourth and fifth grants of the Self-Employment Income Support Scheme, which has been widened to include those who registered as self-employed in 2019/20. 

Meanwhile, for theatre businesses and organisations, the government has also announced more help. An extra £300 million will be added to the Culture Recovery Fund, making the total £1.87 billion. With many theatres hoping to reopen in full force in June, the 100% business rates holiday has been announced to continue to the end of June with rates discounted by two-thirds (up to the value of £2 million for closed businesses) for the remaining nine months of the financial year, and a lower cap for theatres and businesses that can stay open. 

In encouraging news for theatres, the 5% reduced rate of VAT for theatre tickets will be extended to 30 September with the rate only increasing to 12.5% until April 2022 when it is scheduled to return to normal. More specifically, the Octagon Theatre in Yeovil has been afforded £10 million in capital funding for its renovation which includes increasing capacity by 50% and adding a fly tower. 

With so many venues at risk of closing, the £150 million fund aimed at helping communities take ownership of theatres, pubs, shops, sports clubs, and other facilities, will hopefully save endangered establishments. 

Of this support for the arts, Sunak said: "We’re making available £700 million to support our incredible arts, culture and sporting institutions as they reopen.”

Here’s hoping that this will finally secure the safety of our beloved theatres, Besties! If you want to find out anymore information about today’s budget, you can find it here.