Rising production costs threatening viability of UK theatre, says report
'The economics of theatre are finely balanced. Without strategic support and investment, rising costs threaten the viability of even the most commercially successful productions,' it said.
The report outlines potential threats to the sector's financial sustainability, including the cumulative effect of rising inflation, heightened international trade tensions and the potential impact of new US tariffs.
On Wednesday official figures revealed that UK inflation surged to its highest level for more than a year last month after households were hit by a raft of 'awful April' bill increases.
In spite of growing costs, members of the SOLT and UK Theatre welcomed more than 37 million audience members in 2024, with the West End surpassing 17.1 million attendees, generating more than £1 billion in revenue for the first time in history, according to the organisations.
The report estimates that the average price of a West End ticket is 5.3% lower in real terms than in 2019 and says that 'most theatre tickets remain affordable'.
Another issue is investment, with one in five UK venues requiring at least £5 million over the next decade simply to remain operational, according to a 2024 survey from the organisations.
Out of the 65 venues surveyed, it was found that nearly 40% of them could close or become unusable in the next five years without substantial capital funding.
Rising costs in transport, accommodation, freight and staffing are also affecting domestic touring and the report said these financial pressures are 'straining the viability of touring models that rely on lean margins and collaborative delivery'.
At the same time, audiences are facing their own cost-of-living challenges and this means that 'simply raising ticket prices is not a viable solution if theatre is to remain accessible to all'.
The report said higher-priced tickets help 'cross-subsidise lower-cost options, enabling more people to attend while preserving financial sustainability'.
It also said the Government needs to make a 'sustained investment in infrastructure, skills, access and innovation'.
International productions can also face complex issues, such as trade uncertainty, but the report added that 'UK theatre continues to punch above its weight globally'.
Six The Musical, which has toured across the world, is an example of 'the power of UK theatre as a world-leading cultural export', according to the report. Jarneia Richard-Noel, Millie O'Connell, Natalie Paris, Alexia McIntosh, Aimie Atkinson and Maiya Quansah-Breed attending the premiere of Six The Musical Live! (Yui Mok/PA)
SOLT and UK Theatre co-chief executives Claire Walker and Hannah Essex said: 'From the West End to regional stages, our members are working harder than ever to keep theatre accessible and inclusive, even as costs rise and funding declines.
'But the reality is stark: theatres are doing more with less – and the strain is showing.
'Rising costs, shrinking support and ageing infrastructure are putting the sector under unsustainable pressure.
'We are seeing world-class organisations forced to cut programmes, delay maintenance and scale back outreach.
'If we want to maintain the UK's position as a global leader in theatre – and continue to inspire the next generation of actors, writers and technicians – then Government must act.
'That means restoring public investment, investing in infrastructure and ensuring that every child can experience the life-changing power of live performance.'
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Scottish Sun
4 minutes ago
- Scottish Sun
Oasis set incredible 20-year record with Edinburgh gig – and it even tops Taylor Swift
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Spectator
16 minutes ago
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Spectator
16 minutes ago
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The terrifying charisma of Liam Gallagher
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