Orchestras urge Chancellor to extend tax relief

The Association of British Orchestras (ABO) has urged Chancellor Jeremy Hunt to extend the higher rate of Orchestra Tax relief (OTR) in his upcoming budget.

The national body said the move would "help UK orchestras continue to remain ambitious, delivering new productions, creating jobs, building new audiences and delivering for local communities, in the face of continued economic pressures."

Introduced in 2016, OTR offers companies producing live orchestral performances or commissioning new musical work tax relief against creative and production costs. Previously 25%, it was temporarily raised to 50% in October 2021 and will drop to 35% next year and 25% in 2026.

ABO made the comments in response to  Birmingham City Council's plans to remove all financial support for its regularly funded arts organisations as part of a strict budget designed to save £300m over the next two years.

Under the proposals City of Birmingham Symphony Orchestra (CBSO) will see its £630,000 yearly grant reduced by 50% this year before being completely removed in 2025/26.

ABO said it had "deep concern" over the planned cuts and asked the Chancellor to commit to ensuring that "all local councils have sufficient funding to set balanced budgets for 2024/25 and develop sustainable medium-term financial strategies".