Policy

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".

UK Music is calling on Education Secretary Gillian Keegan to halt “damaging” plans to withdraw funding for post-16 music qualifications.

Government has proposed reforms that would defund the current suite of vocational Level 3 qualifications for music by 2026.

Level 3 qualifications in music are aimed at giving 16- to 19-year-olds skills and knowledge to progress to other training, study and employment options in a range of music production and performance disciplines. UK Music says the qualification has left students well-prepared for the often non-linear career progression in the creative industries. 

In a letter to Keegan, UK Music’s Interim Chief Executive Tom Kiehl says the move would leave approximately 30,000 young people a year without a viable alternative.

“Our primary concern relates to the planned defunding of the current suite of vocational Level 3 qualifications for music by 2026. There are not enough alternative options to fill the void that this creates,” Kiehl wrote.

“In the absence of a T-Level for Music, defunding for existing qualifications places a massive administrative burden on many in the music education sector, with qualifications having to be rewritten as Alternative Academic Qualifications (AAQs) and approved by Department for Education. 

“While the introduction of AAQs is not new, its requirement for 'assessment by examination' poses a great challenge for educators to implement the necessary course changes within the timeframe available. Moreover, this approach to learning risks diminishing accessibility to a subject that has traditionally empowered learners from diverse learning styles and backgrounds.”

Kiehl's letter continues: “We therefore ask for an immediate pause in the defunding of all music qualifications that are due to be effectively ‘turned off’ by 2026 and ask for a meeting with you and a representative group of impacted music education providers to find a way forward.

“As an industry, we acknowledge that our success depends on a diverse and accessible range of education and skills options at various levels. Vocational Level 3 qualifications are crucial for the music talent pipeline and are often overlooked.”