Through Arts Council England’s 2023–26 National Portfolio Investment Programme, more funding is reaching orchestral organisations in more parts of the country than ever before, with around £65 million of public investment each year supporting 139 music organisations.

In Staffordshire, since 2023, the Stoke-on-Trent Festival has received £186,000 through two grants to expand classical performances and music education. In addition, City of Birmingham Symphony Orchestra, English Symphony Orchestra and Orchestra of the Swan, all supported by Arts Council England (ACE), tour in Staffordshire, while the Stoke-on-Trent and Staffordshire Music Education Hub supports young musicians. These investments benefit communities across both Newcastle-under-Lyme and Staffordshire.

ACE’s National Lottery Project Grants provide funding to support artists, cultural organisations and community groups to deliver creative and cultural activity. The programme is open to eligible organisations, including community orchestras in both Newcastle-under-Lyme and Staffordshire, providing opportunities to secure funding for performances, audience development, education and community engagement projects.

Orchestra Tax Relief (OTR) provides tax relief on production costs and provided around £50 million of support in 2023-24. There is currently no other country in the world which offers similar relief to orchestras, and the aim is to recognise the artistic importance and cultural value of the sector.

To qualify for OTR, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument for the purposes of the relief. However, orchestra concerts with a vocal element are not excluded. Concerts featuring a choir may be eligible provided that the instrumentalists remain the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically. The Government is not currently considering extending the relief to choirs.

The Government is proud to champion our world-class orchestras and musicians, and help them to thrive. Through Arts Council England’s (ACE) 2023–26 National Portfolio Investment Programme, more money is going to more orchestral organisations in more parts of the country than ever before.The National Portfolio is supporting 139 organisations classed as ‘music’ by investing around £65 million of public funding per annum. ACE investment in classical music remains high, in particular in orchestral music organisations, with 23 such organisations being funded to the tune of around £21 million per annum. We are also supporting orchestras through the tax system, confirming from April 2025 that Orchestra Tax Relief on production costs would be set at the generous rate of 45 per cent.

Over the course of this Parliament, we will also make a £1.5 billion capital investment into fulfilling our Arts Everywhere ambitions. This funding package includes £425 million for the Creative Foundations Fund, revitalising and renewing performing arts buildings across England, including resident venues and key stops on orchestral tours. We will also, for the first time, provide £80 million of capital funding to the National Portfolio Investment Programme over the next four years. This means that Arts Council England will be able to give around 1,000 cultural organisations a 5% uplift in their regular funding; the single biggest uplift to an existing Portfolio in decades.

The Government supports the creative industries, including orchestras, through funding and via the tax system. Orchestra Tax Relief (OTR) was introduced to recognise and sustain the distinct cultural and economic activity associated with orchestral productions.

Under current rules, qualifying concerts must be performed by a group of at least twelve instrumentalists. The human voice is not considered an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra has at least 12 instrumentalists, and the instrumentalists are the primary focus.

In considering any changes to existing tax reliefs or introducing new ones, Government has to consider a wide range of factors, including the specific aims of the relief, the costs and complexity of designing and administering new provisions, and fairness.

Decisions on tax are taken by the Chancellor at fiscal events, in the context of overall public finances.

Education is a devolved matter, and the response outlines the information for England only.

As part of our Opportunity Mission, the department wants to widen access to the arts, including music, so young people can develop their creativity.

On 18 March 2025, the department announced its intention to launch a National Centre for Arts and Music Education to promote opportunities for children and young people to pursue their artistic interests in school, including through the government’s network of Music Hubs.

The government has also committed £79 million per year for Music Hubs to the 2025/26 academic year. The 43 Music Hubs partnerships offer musical instrument tuition, instrument loaning, and whole-class ensemble teaching in schools. It is for schools and Hubs to decide in relation to lessons that support orchestral music.

HMRC balances the need to ensure that payments for tax reliefs are processed as quickly as possible with the need to ensure that they are claimed only by those who are eligible to do so. All claims for Orchestra Tax Relief are risk assessed on receipt. Where a claim is received and identified as requiring further review, HMRC may open an enquiry and ask for additional information.

The information provided states the average number of days to process a claim, which includes payment of the claim or making a decision to ask for further information or open an enquiry.

The UK provides world-leading support for orchestras: at Autumn Budget 2024, the Government confirmed that from 1 April 2025, the rate of Orchestra Tax Relief (OTR) will be set at the generous rate of 45%.

From April 2024, qualifying expenditure is expenditure incurred on goods or services that are ‘used or consumed in the UK’, replacing the previous rule that qualifying costs were those incurred on goods and services provided from the UK or EEA.  To ease the transition to the new rule, orchestras with concerts in train on 1 April 2024 were permitted to continue claiming relief on goods and services provided from within the EEA until 31 March 2025.

It is appropriate to refocus orchestra tax relief on UK expenditure now that the UK has left the EU. Under the new rule, the relief incentivises activity within the UK, rather than the UK and the EEA. This does not prevent qualifying productions from touring in the EEA (nor elsewhere).

As with all tax policy changes, a Tax Information and Impact Note was published in 2023 which can be found here: Administrative changes to the creative industry tax reliefs - GOV.UK.

The Government supports the creative industries, including orchestras, through funding and through the tax system. Orchestra Tax Relief (OTR) provides tax relief on productions costs and provided £33 million of support in 2022-23.

To qualify for OTR, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra also contains at least 12 instrumentalists, not including the voice, and the instrumentalists are the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically.

Orchestra tax relief is available for costs incurred on goods or services that are used or consumed in the UK. This replaces the previous rule that qualifying costs were those incurred on goods or services provided from the UK or the European Economic Area (EEA).

To ease the transition to the new rule, orchestras with concerts in train on 1 April 2024 were permitted to continue claiming relief on goods or services provided from within the EEA until 31 March 2025.

It is appropriate to refocus orchestra tax relief on UK expenditure now that the UK has left the EU. Under the new rule, the relief incentivises activity within the UK, rather than the UK and the EEA. This does not prevent qualifying productions from touring in the EEA (nor elsewhere).

As with all tax policy changes, a Tax Information and Impact Note was published in 2023 which can be found here: Administrative changes to the creative industry tax reliefs - GOV.UK.

The Government keeps all taxes under review.

Orchestra tax relief is available for costs incurred on goods or services that are used or consumed in the UK. This replaces the previous rule that qualifying costs were those incurred on goods or services provided from the UK or the European Economic Area (EEA).

To ease the transition to the new rule, orchestras with concerts in train on 1 April 2024 were permitted to continue claiming relief on goods or services provided from within the EEA until 31 March 2025.

It is appropriate to refocus orchestra tax relief on UK expenditure now that the UK has left the EU. Under the new rule, the relief incentivises activity within the UK, rather than the UK and the EEA. This does not prevent qualifying productions from touring in the EEA (nor elsewhere).

The Government supports the creative industries, including orchestras, through funding and through the tax system. Orchestra Tax Relief (OTR) provides tax relief on productions costs and provided £33 million of support in 2022-23.

To qualify for OTR, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra also contains at least 12 instrumentalists, not including the voice, and the instrumentalists are the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically.

Whilst the Government has no plans to extend OTR to choirs, all taxes are kept under review. The Chancellor makes announcements on tax at fiscal events in the context of the overall public finances.

The Government supports the creative industries, including orchestras, through funding and through the tax system. Orchestra Tax Relief (OTR) provides tax relief on productions costs and provided £33 million of support in 2022-23.

To qualify for OTR, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra also contains at least 12 instrumentalists, not including the voice, and the instrumentalists are the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically.

Whilst the Government has no plans to extend OTR to choirs, all taxes are kept under review. The Chancellor makes announcements on tax at fiscal events in the context of the overall public finances.

The UK provides world-leading support for orchestras: at Autumn Budget 2024, the Government confirmed that from 1 April 2025, the rate of OTR will be set at the generous rate of 45%.

From April 2024, qualifying expenditure for the orchestra tax relief (OTR) is expenditure incurred on goods or services that are ‘used or consumed in the UK’, replacing the previous rule that qualifying costs were those incurred on goods/services provided from the UK or EEA.  To ease the transition to the new rule, orchestras with concerts in train on 1 April 2024 were permitted to continue claiming relief on goods/services provided from within the EEA until 31 March 2025.

It is appropriate to refocus orchestra tax relief on UK expenditure now that the UK has left the EU. Under the new rule, the relief incentivises activity within the UK, rather than the UK and the EEA. This does not prevent qualifying productions from touring in the EEA (nor elsewhere).

The UK provides world-leading support for orchestras: at Autumn Budget 2024, the Government confirmed that from 1 April 2025, the rate of Orchestra Tax Relief (OTR) will be set at the generous rate of 45%.

From April 2024, qualifying expenditure is expenditure incurred on goods or services that are ‘used or consumed in the UK’, replacing the previous rule that qualifying costs were those incurred on goods and services provided from the UK or EEA.  To ease the transition to the new rule, orchestras with concerts in train on 1 April 2024 were permitted to continue claiming relief on goods and services provided from within the EEA until 31 March 2025.

It is appropriate to refocus orchestra tax relief on UK expenditure now that the UK has left the EU. Under the new rule, the relief incentivises activity within the UK, rather than the UK and the EEA.

The government recognises the value of the UK’s world-leading creative industries and arts sectors.

On 1 April 2024, several administrative changes to Orchestra Tax Relief took effect, following legislation being passed in Finance Act 2024.

In accordance with standard practice, HMRC published a tax information and impact note about the legislation, which can be accessed at: https://www.gov.uk/government/publications/creative-industry-tax-reliefs-administrative-changes/administrative-changes-to-the-creative-industry-tax-reliefs

As set out in the note, the administrative changes are expected to have a negligible impact on businesses claiming the creative tax reliefs.

The creative industries play a key role in driving economic growth, and the Government is committed to supporting them.

Orchestra Tax Relief (OTR) provides tax relief at a rate of 50% on production costs. To qualify for the relief, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument. However, orchestra concerts with a vocal element are not excluded from the relief. Concerts with a vocal element may be eligible provided that the instrumentalists are the primary focus.

These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically. The Government keeps the tax system under review and any changes will be announced at a fiscal event.

My Lords, the Government are committed to supporting the creative industries, which play a key role in driving economic growth. As part of the Government’s industrial strategy, a creative industries sector plan will be developed, working with business, local leaders and sector experts. I am unable to comment on any specific taxes ahead of the Budget; any tax changes will be confirmed in the Budget on 30 October.