Baroness Twycross (Lab)

Okay—I will carry on until I am cut off. The right reverend Prelate the Bishop of St Albans, the noble Baroness, Lady Fleet, and the noble Lord, Lord Parkinson, among others, raised the issue of national insurance contributions. I know that the announcement of an increase in the rate of employers’ national insurance contributions has caused some concern across these sectors. Officials from my department have spoken with a number of major cultural organisations to understand how it will impact them. Regarding the cuts to the levelling-up funding for cultural projects, mentioned by the noble Baroness, Lady Sater, and the noble Lord, Lord Parkinson, the Chancellor has set out the state of the UK’s spending inheritance from the previous Government—a forecasted overspend of £21.9 billion above limits set by the Treasury in the spring. The MHCLG will consult with potential funding recipients, including funding to some projects related to DCMS-sponsored cultural bodies, before a final decision is made. Recipients will have until mid-December to respond. This Government are absolutely committed to culture, as we believe is demonstrated by the positive settlement achieved for DCMS at the Autumn Budget. However, to repair the public finances and help raise the revenue required to increase funding for public services, the Government had to take some difficult decisions, including increasing the rate of employers’ national insurance. On the impact to charities in particular, our tax regime, including business rates exemptions, is among the most generous anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024. The noble Earl, Lord Clancarty, raised the issue of support for the Welsh National Opera, and I am happy to pick that up with him separately outside this debate.