Information for musicians following the ‘mini-budget’ Jump to main content

Information for musicians following the ‘mini-budget’

The Chancellor of the Exchequer, Kwasi Kwarteng MP, has delivered his ‘mini budget’ to the House of Commons. The statement came at a time of rising inflation, a cost-of-living and energy crisis, concern about school budgets and rising interest rates.

ISM members and the wider music sector will be directly impacted by changes to national insurance, income tax and corporation tax rates. ISM members who are freelancers will view the changes to IR-35 with interest.

Despite the difficulties caused by the pandemic and the cost-of-living crisis, the statement did not provide targeted support for the music industry. This week UK Music’s annual report showed the music industry’s recovery from COVID-19 was still fragile. They found its contribution to GDP was £4bn in 2021 compared to a 2019 pre-COVID high of £5.8bn. We believe that this is a missed opportunity to help the sector.

The ISM also notes that today’s statement provided no new investment in education and skills, which should be an essential part of an overall growth strategy.

In the months ahead we will continue to lobby on behalf of ISM members and the UK music sector to secure the additional support we believe is required to ensure music is able to thrive.

Headlines at a glance:

  • IR-35 will be repealed from April 2023
  • The 1.25% rise in National Insurance will be reversed from 6 November
  • The basic rate of income tax will be cut by 1p to 19p from April 202
  • The 45p tax rate for top earners over £150,000 will be abolished, from April 202
  • Corporation tax rise was cancelled, maintaining it at 19% for businesses