Delay to energy package putting industry at risk – theatres bosses

Theatre bosses have warned that the government’s delay in announcing additional energy-cost support for businesses is putting a "particularly vulnerable" industry at risk.

It comes as the government said it would not be announcing plans for supporting businesses past an initial six-month period until the new year, having initially promised it would outline support from April 2023 before the end of the year.

The delay is putting an already strained sector under increased pressure, with venues and companies having to look seriously at their businesses in light of increasing costs. 

The Stage understands SOLT/UK Theatre has conducted research into the impact of increased energy costs, with some companies considering staff cuts or the possibility of ceasing trading as a result, while there is also the possibility of increases to ticket prices to combat difficulties.

Responding, SOLT and UK Theatre co-chief executive Hannah Essex said theatres and producers had been "working hard to deliver growth in the economy in increasingly challenging circumstances, as they navigate the rising cost of energy and raw materials, significant skills shortages and the impact of the rising cost-of-living on audience demand".

"Like businesses across the economy, the theatre sector depends on this announcement to forecast its energy costs into the next financial year. With the theatre sector being particularly vulnerable to energy-price hikes, venues and producers will likely be making tough decisions on how to respond to the expected increase, in some cases running at 175% even with the current support in place," she said.

Essex also warned that companies which have obligations to present business plans to Arts Council England by January 20 as part of their national portfolio organisation agreements will "not be able to accurately assess the impact of energy costs on their planning until it is potentially too late to be considered as part of their portfolio offer".

Consequently, she said SOLT and UK Theatre would be "pushing hard with ministers and officials in HM Treasury, the Department for Business, Energy and Industrial Strategy and the Department for Digital, Culture, Media and Sport to ensure this announcement is made as early in the new year as possible".

"We will also be continuing discussions on how to deliver growth in the sector with colleagues in government, including our proposals for an investment fund to support sustainability improvements in theatre buildings and maintaining the higher rate of Theatre Tax Relief," she added.