The director of the Victoria and Albert Museum (V&A), Tristram Hunt, has urged the UK government to reverse the inheritance tax element of its policy on UK residents whose permanent home is outside of the UK, in a bid to bolster funding for the embattled arts sector.<\/p>\n
The new rules, which came in to force in April this year, make the worldwide assets of all UK residents subject to inheritance tax at 40%, even if placed in trusts. Speaking at the Art Business Conference in London last week, Hunt said that a cumulative\u00a0\u201ccrack down\u201d on non-domiciled UK residents\u2014commonly known as non-doms\u2014across successive governments has led to a \u201cflight of capital\u201d.<\/p>\n
\u201cAt the V&A, we’re seeing wealthy individuals who we know would have supported capital projects in the past, no longer feeling able to. We’re seeing, particularly in South Asian communities, the attractiveness of Dubai as a place between South Asia and Europe.<\/p>\n
\u201cI would urge the government to reverse the inheritance tax component of the non-dom policy because I think non-doms would be happy to pay more to be in the UK. But it’s the inheritance tax component, which is really driving people away,\u201d said Hunt.<\/p>\n
A levy for the culture sector<\/p>\n
The panel, titled \u201cthe future of cultural policy to drive economic impact for the UK\u201d, also discussed the issue of a hotel levy. The scheme would see tourists pay a small percentage-based charge of around 3% to 5% on overnight stays, a move which could generate more than \u00a31bn to support the UK\u2019s cultural infrastructure.\u00a0<\/p>\n
\u201cWe’re so passionate about it is [because] if four out of five tourists come to London for culture, then why are we not doing what every other major European entity global city does, which is to have a hotel levy that goes into the infrastructure to support the tourism,\u201d said Hunt. \u201cI think the hospitality sector need to work out if this is coming\u2014it might not be this year, it might not be next year, but it’s going to happen in the next five or ten years\u201d.<\/p>\n
On the topic of how the funds raised by a levy should be spent, Hunt added: \u201cHow do we crucially ensure that it doesn’t go on supporting a four-day week for the RMT [The National Union of Rail, Maritime and Transport Workers]?\u201d Another panellist, Simon Fox, the chief executive officer of Frieze, agreed it is important that any money be \u201cappropriately used\u201d. \u201cIt\u2019s just sitting on a tree waiting to be plucked,\u201d he said of the levy.<\/p>\n
The panel’s moderator, the arts journalist and The Art Newspaper’s editor-at-large, Jane Morris, questioned if such a fund would be ring fenced for culture though or spent on other services. In response, panelist Alison Cole, the director of the Cultural Policy Unit think tank, said: \u201cWe have this virtuous circle argument. If the tourists come here, they benefit every part of the economy. <\/p>\n
\u201cBut if they mainly come for culture, then you want the money to go back into the cultural infrastructure that’s straining under the weight and also into placemaking.\u201d<\/p>\n
Art on the curriculum <\/p>\n
The panel also raised serious concerns about the lack of progress made in getting art and design back on to the UK curriculum. According to recent research conducted for Arts and Minds by WeThink\/Omnisis, participation in arts subjects at GCSE level has fallen by 42% over the last 15 years.<\/p>\n
Referring to an exam sat in place of GCSEs by many UK students aged 16, which does not include arts subjects, Hunt said: \u201cI’m not against the EBACC as I think there are progressive elements to it\u2026 everyone should have the right to scholarly rich, fulfilling educations but not at the cost of the creative and the performative. And that’s what’s been lost.<\/p>\n
\u201cSo we were hoping I think for [art] to be put back on and not just have afterschool clubs and breakfast clubs. Those are important in and of themselves, but it needs to be in the curriculum\u2014head teachers need to be judged by it and then they will respond accordingly.\u201d <\/p>\n
Culture in the economy<\/p>\n