New report highlights £1 billion impact of cultural tax reliefs on the creative sector

A report commissioned by Arts Council England and produced by Nordicity, Ipsos, and Saffery reveals the significant economic, cultural, and social benefits delivered by the UK’s cultural tax reliefs, including Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR), and Museums and Galleries Exhibition Tax Relief (MGETR).

Since their introduction between 2014 and 2017, these reliefs have delivered nearly £1 billion in financial support to theatres, orchestras, museums and galleries across the UK.

Key findings

The report finds that organisations claiming cultural tax reliefs earned 37% more income annually and 162% more from international activity than non-claimants, while staging an additional 30,550 performances each year.

Enhanced rates introduced during the Covid-19 pandemic were critical in helping organisations recover and innovate, with over 77% of surveyed organisations reporting improved financial resilience.

The review also models the potential benefits of further enhancements, such as expanding qualifying costs to include audience outreach and education. For example, extending TTR in this way could generate £326.4 million in GVA and create 3,622 full-time equivalent jobs, yielding a benefit-cost ratio of £4.5 million in GVA for every £1 million invested.

Stephen Bristow, partner in the Film and TV team at Saffery, commented:

“This report provides compelling evidence of the cultural tax reliefs’ impact across theatre, orchestras, museums and galleries. These measures have delivered nearly £1 billion in support, driving growth, resilience, and innovation in the UK’s cultural sector. As we’ve seen in the film and TV industry, well-designed tax incentives are a proven catalyst for creativity and investment. Extending and enhancing these reliefs will ensure the UK remains a global leader in culture and the creative industries.”

The report recommends maintaining the current enhanced rates and exploring targeted expansions to maximise cultural, social, and economic returns for the UK.

Read the full report here