ISM reaction to Budget 2021
The Chancellor, Rishi Sunak has delivered his 2021 budget and we take a look at the key points that matter to ISM members and all professional musicians.
Creative Industries Tax Relief
The Chancellor confirmed the continuation and extension of this scheme saying, ‘To support theatres, orchestras, museums & galleries the tax reliefs for all those sectors will – from today until April 2023 – be doubled. We won’t return to the normal rate until 2024. That’s a tax relief for culture worth almost a quarter of a billion pounds.’
From 27 October 2021, the rates will temporarily increase from 25% to 50%, reducing to 35% from 1 April 2023 and returning to 25% on 1 April 2024.
While this tax relief will benefit theatres, orchestras and more, we hope that it will also benefit musicians and increase their opportunities to work.
Hospitality Business Rate Relief
The Chancellor confirmed a new 50% business rates discount for companies in the retail, hospitality, and leisure sectors, lasting for one year.
'Pubs, music venues, cinemas, restaurants, hotels, theatres, gyms, any eligible business can claim a discount on their bills of 50%, up to a maximum of £110,000,' he said.
While musicians may not benefit directly from this relief, we hope that it will support venues and theatres in their recovery and increase opportunities to work for musicians.
The Chancellor confirmed that the National Living Wage (for those aged 23 and over) will increase by 6.6% to £9.50 per hour from 1st April 2022. Raises to the National Minimum Wage were also announced:
• increasing the rate for 21 to 22-year-olds by 9.8% to £9.18 per hour
• increasing the rate for 18 to 20-year-olds by 4.1% to £6.83 per hour
• increasing the rate for 16 to 17-year-olds by 4.1% to £4.81 per hour
• increasing the rate for apprentices by 11.9% to £4.81 per hour
Chancellor confirmed that he is cutting the universal credit taper rate from 63% to 55%.
The Chancellor said it will be introduced no later than 1 December.
This will mean that those who work and receive Universal credit will 'take home' more money.
Education and Early Years
There were a number of funding announcements made for schools including:
- £107m for a network Family Hubs around the country
- £150m to support and train those who work in early years, along with more funding for holiday and activity programmes
- An extra £4.7bn by 2024-25 for schools
- A further £2bn of new pandemic recovery funding for schools and colleges.
- £300m will towards 'A Start for Life offer' for families
We are very disappointed that the Chancellor made no mention of the Arts Premium which was subject to this spending review. It is also important that funding reaches the creative subjects.
This webpage will be updated as more Budget analysis happens.