Save the Arts: Campaign coup as business gives its backing

The Independent and Independent on Sunday campaign to stop the crisis in the arts by giving tax relief to people donating money to theatres, galleries, museums and orchestras, has won another victory, gaining the support of the country's leading businesses.

The Association for Business Sponsorship of the Arts (Absa), which represents 300 businesses including companies such as BT and BP, is supporting our campaign, Absa's director-general Colin Tweedy said yesterday.

The association, whose director of operations is Ffion Jenkins - recently married to the leader of the Opposition, William Hague - numbers luminaries in both business and the arts on its ruling council.

These include businessmen such as Sir Peter Davis and Sir Nicholas Goodison and leading figures in the arts such as Dame Diana Rigg and Lord Puttnam.

Absa yesterday published its own tax guide for its members, prepared in association with Arthur Andersen, the accountancy firm. Absa chairman Robin Wight, who heads the WCRF advertising agency, has sent a copy to Gordon Brown, the Chancellor, with a letter that says the Government should look at ways of simplifying the treatment of sponsors and donors in line with the United States model.

Mr Wight says: "Our tax guide is 60 pages long. Surely it should only be three pages."

And Mr Tweedy added yesterday: "Arts supporters should be left with a warm feeling and not an accounting nightmare."

The Independent and Independent on Sunday campaign is urging the Chancellor to simplify the tax system for those giving to the arts and make all donations tax deductible in his Budget on 17 March. This would massively increase the amount of money individuals give to the arts, and help end the financial crisis that cultural institutions are facing.

Already this week the campaign has attracted the significant support of the Secretary of State for Culture, Chris Smith. Many leading arts figures including Sir Peter Hall, Sir Cameron Mackintosh, Fiona Shaw and Ian Holm have also given their support.

We are urging Mr Brown to use his Budget to introduce a change in taxation law to enable people to make tax-free donations to arts companies and venues.

A simple system could be brought in to replace the muddled and cumbersome system of tax relief through covenants and the Gift Aid Scheme.

The system is riddled with anomalies. Some arts organisations are charities, others are not. Tax relief can only be claimed where the organisation is a charity. In addition, tax relief can only be claimed on donations above pounds 250, a deterrent to many who would like to help the arts.

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