Investing in Theatre
Research published by SOLT & UK Theatre on Monday 1st July 2024 demonstrates the urgent need for sustainable and systematic investment in theatre buildings across the UK and highlights how investment in theatre and performing arts venues helps to strengthen communities, provides job opportunities and boosts the UK’s creative exports.
- 1 in 5 venues require at least £5m each in the next 10 years just to continue current operations.
- Without significant capital investment in the next five years, nearly 40% of venues risk closure and 40% will become too unsafe to use.
However, if theatres can access the investment they need:
- 54% could provide more jobs for their local communities and 62% would increase or improve their outreach work.
- 100% of venues would improve their environmental sustainability.
- 57% would increase the variety of programming.
- 100% of buildings built in the Victorian period would be able to increase accessibility for patrons.
Theatre is a vital part of the UK’s fast-growing creative industries. A 2023 study conducted on behalf of the SOLT & UK Theatre suggests that the UK theatre sector:
- Generates £2.39bn in GVA,
- Supports nearly 205,000 workers, and
- Generates a total turnover of £4.44 billion.
This is made up of just over £1 billion of direct turnover in the UK theatre sector (e.g. from selling tickets for performances, licensing of production rights, managed tours), which generates a further £1.3 billion of turnover in the broader economy.
Theatre audiences also contribute additional spending in local economies up and down the country when visiting a performance. For every £1 spent on a theatre ticket, an additional spend of £1.40 is generated in local economies, adding up to £1.94bn per annum of extra value added to local economies by theatre audiences.
Economic Impact Assessment of the UK Theatre Sector (June 2023)
SOLT & UK Theatre commissioned research and strategy consultants Sound Diplomacy to conduct a review of the economic impact of the UK theatre sector. This culminated in the Economic Impact Assessment of the UK Theatre Sector report, which was published in June 2023.
The report contributes significantly to the sector’s evidence base, highlighting:
- The economic impact of theatre
- The impact of audience spending
- The impact of the COVID-19 pandemic on the sector, and
- The distribution of theatre assets across the UK.
Theatre Tax Relief
Since it was first introduced in September 2014, Theatre Tax Relief (TTR) has been pivotal in supporting theatrical productions across the UK.
We estimate that at least £163 million was invested into theatrical productions in 2021-22 as a result of £38 million of Theatre Tax Relief. This is a return of over 4 to 1 for the public purse.
SOLT & UK Theatre are campaigning to maintain TTR at the higher rate of 50/45% in perpetuity. SOLT & UK Theatre are also keen to work with HMRC to improve guidance and ensure the effective rollout of recent changes to TTR legislation.
For more information on our work on Theatre Tax Relief, visit our dedicated page.
