Sofi Berenger, Executive Producer and Acting CEO of the King’s Head Theatre, on how the 2024 budget announcement was a “huge win” for London theatre
On 6th March, the announcement of the new permanent increase to Theatre Tax Relief (TTR) felt like a huge win for the theatre industry. During the 2024 budget announcement, Chancellor Jeremy Hunt announced that the Theatre Tax Relief rates were to be raised to 45% for touring and 40% for non-touring expenditure.
This felt like a crucial sign of support for the sector, and comes at a time where other funding avenues are squeezed. Artists are battling to find sustainable, future-proof models to compete with rising costs without the willingness for ticket prices to increase with it. The announcement supports shows across the sector – regional, West End, small-scale, touring – which contributed an estimated £11.5bn towards the national economy and 67,000 jobs in 2022.
The tax relief rates provide a lifeline for fringe and mid-scale theatre producers to find necessary subsidy they need, supporting one of the most significant talent feeders into the UK’s world-class actors, writers, directors and creatives across the film, television and performing arts.
No one making work on this scale is walking away with significant profits. Almost always, the cost of creating work vastly outweighs the potential return it can make from ticket sales
Small to mid-scale theatres don’t have the same commercial potential as our West End counterparts, whether because of shorter runs or smaller seating capacities or both. No one making work on this scale is walking away with significant profits. Almost always, the cost of creating work vastly outweighs the potential return it can make from ticket sales – after all it doesn’t matter if you’re a 100 seat theatre or 1,000 seat theatre you still need writers, directors, production managers, designers, performers.
This means small-mid scale artists rely on finding subsidy and other funding avenues. For a lot of artists this used to mean Arts Council England – which has been subject to heavy governmental cuts nationwide but specifically in London since the pandemic. The chancellor’s permanent decision to increase the TTR rates offers a buffer against these costs, making many shows viable – not to make any kind of profit, but simply to break even, which is often the principal goal of most small-mid scale producers.
In a landscape where funding from central government is at a drastic low, this is a necessary step to ensure the future of the industry. The King’s Head Theatre, and theatres like ours, has started the careers of so much world-renowned talent since 1970 – Hugh Grant had his professional debut with us, and the likes of Celia Imrie, Maureen Lipman, Jennifer Saunders, Dawn French, Alan Rickman, Richard E Grant and Victoria Wood all cut their teeth on our stage before world-wide fame.
Venues like ours are how we develop talent in the UK. Small-mid scale theatres (under 300 seats) are where shows like Six, The Play That Goes Wrong, Operation Mincemeat and even Rocky Horror Picture Show were developed and premiered.
Venues like ours are how we develop talent in the UK. Small-mid scale theatres (under 300 seats) are where shows like Six, The Play That Goes Wrong, Operation Mincemeat and even Rocky Horror Picture Show were developed and premiered. Finding a sustainable financial model which can continue this work secures not just our immediate safety, but our long term future as a cultural leader. This isn’t to say that TTR is the only way for small and mid-scale producers to recoup a portion of their costs. There are, and have always been, other forms of funding and subsidy – which, cuts aside, often require lengthy, time consuming and complicated application forms, judged by panels and gatekeepers.
For most artists earlier in their career, this requires resources, knowledge and experience which takes years to develop. Furthermore, a significant amount of funding for producers and artists outside of Arts Council England requires a charity number – another lengthy and expensive process – which instantly excludes a significant amount of emerging artists or small-mid scale producers.
TTR is an entirely unbiased form of funding. It is available to claim against pre-production costs to any production which is run through a Ltd Company (a 15 min process, £12, and processed in 24 hours), and which submits a corporation tax return – at a fixed and now reliable rate. In a political landscape where the arts often receive huge and ongoing cuts to funding, the chancellor’s decision is a welcome relief to many of us working across the sector.
The 2024 budget has given us a lifeline – not just to large West End producers, or the big institutions, but to every production, at every scale. Small to mid-scale theatres, after fringe and arts festivals, are a first port-of-call for new writing and fresh producers and production companies. They are a vital stepping stone for career growth and development in our sector and create many opportunities for those both on and off stage. We feel very positive about this recent announcement and look forward to seeing the impact it has on the theatre industry as a whole.
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