To ask His Majesty's Government, further to the answer by Lord Kamall on 20 October (HL Deb col 1168), whether there are ongoing discussions with the arts sector regarding a reduction in VAT on tickets; and what assessment they have made of the effect of such a measure on the sector.
8 November 2022
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited by both legal and fiscal considerations.
VAT is the UK’s third largest tax forecast to raise £154 billion in 2022/23, helping to fund key spending priorities such as important public services, including the NHS and policing.
In addition, a request for a VAT cut should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum.
Currently, there are no plans to reduce the main rate of VAT on tickets for the art sector. However, the Government keeps all taxes under review as part of the tax policy making cycle and Budget process.