HC Deb 18 July 1983 vol 46 cc17-8
27. Mr. Freud

asked the Under-Secretary of State answering in respect of the arts if he will list the incentives being given by Her Majesty's Government to sponsors of the arts, both in respect of private individuals and companies; and if he will make a statement.

Mr. Waldegrave

Considerable tax incentives are available to individuals and companies for donations to charities, including arts charities. These were improved by the last Government. There also exist various capital tax privileges for private owners of works of art of national importance. These were listed in a booklet published by the Office of Arts and Libraries last July. Since then my right hon. Friend the Chancellor of the Exchequer has announced a further concession on VAT in the case of acceptances in lieu of tax and private treaty sales.

Mr. Freud

Does the hon. Gentleman accept that, though tax concessions to the arts exist, they are pretty miserly? Does he agree that if they were extended with a little more corporate generosity it would be a self-financing exercise for the arts?

Mr. Waldegrave

I am not sure that I wholly agree. Businesses and individuals are often ignorant of the tax concessions that are now available through the convenant scheme. Pressure has been brought to bear to introduce the full American system. I am sure that my noble Friend will consider that in response to the Education, Science and Arts Committee report. One of the things that we should do first is to make it clear to people that considerable concessions exist, which, if used fully, could be of great benefit to the country and to the arts.

Viscount Cranborne

Does my hon. Friend agree that the arts tend to flourish more under the idiosyncratic patronage of individuals than under the more cautious approach of committees sponsored by Government organisations?

Mr. Waldegrave

My hon. Friend has, perhaps, some contributions that may be gratefully received by the arts organisations. The spirit of my hon. Friend's question is that pluralism is necessary and that the flow of funds should not be over-centralised. Pluralism should involve various sources of central Government and local authority funding as well as funding by individuals and private companies.