Hikes to employer National Insurance contributions will cost Eden Court an extra £100,000 a year, it has confirmed.
The theatre is confident it is well-placed to absorb the extra costs, but its CEO Rebecca Holt did warn that this could divert money away from investment in its arts and cultural activities – meaning there will be “unrealised ambition” among Highland talent.
She was speaking after Highland MSP Emma Roddick raised concerns in Holyrood that the Scottish Government’s planned £34 million increase in culture funding could be wiped out by costs linked to the UK government’s changes to National Insurance (NI) contributions among employers.
The NI move has also sparked worry across a wide array of public and voluntary organisations, with 48 separate groups representing numerous sectors – including councils and charities – recently signing a letter co-signed by First Minister John Swinney calling for a rethink.
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And Ms Roddick, a list MSP for the SNP, has now warned that the NI increase would mean an extra bill of £100,000 a year for Eden Court – a figure since confirmed by Ms Holt – and asked the Scottish Government to take steps to mitigate against the cost and ensure investment in the arts still goes where it is intended.
Emma Roddick (left) and Rebecca Holt with a signed certificate the MSP provided marking a motion lodged in the Scottish Parliament in her name, that celebrated the theatre’s recent MG ALBA Best Venue Award.
She said: “The Scottish Government is absolutely committed to supporting our culture and arts sector, with an additional £34 million of funding allocated during the draft Scottish budget last month.
“While this funding was warmly welcomed by the sector, Labour’s decision to hike national insurance has put the plans of organisations into jeopardy. Organisations are now concerned the funding will have to be spent on covering the additional employer costs rather than being used to support the sector.
“I have met with Eden Court recently to discuss this, and it estimates the increase will cost them £100,000. This is money that could, and should, be used to support the arts and culture sector in the Highlands.
“Not only does the Scottish Government have to mitigate the UK government’s decisions, but employers are having to as well.
Emma Roddick MSP.
“Our culture and arts sector must be able to use the additional funding from the Scottish Government to foster creativity and innovation, and I have urged the Scottish Government to do all it can to ensure the money can be spent where intended, continuing to make a positive impact in our communities.”
Speaking exclusively to The Inverness Courier following Ms Roddick’s intervention in parliament, Eden Court’s Ms Holt said: “The £100,000 figure is accurate. We are not alone in this and a recent article in The Stage newspaper highlighted that £100k is a rough average for the sector.
“However, we are used to dealing with these kinds of issues – and have had to absorb similar cost increases in recent years as we’ve dealt with inflationary pressures. Therefore we do not anticipate any major changes will be necessary for Eden Court due to this. In fact, coming off the back of another successful panto season, we are feeling very positive about the future.
Rebecca Holt, Chief Executive at Eden Court.
“To Emma Roddick’s point – the need to absorb additional costs, rather than invest in arts and cultural activity, does mean that there will continue to be unrealised ambition.
“We are hopeful that, following the Scottish Government’s announced increase in culture funding, the upcoming decisions by Creative Scotland will recognise Eden Court’s important role in the Scottish cultural sector – and that funding will be provided at a level which allows us to be even more ambitious.”
Ms Holt added that Eden Court had enjoyed a very successful pantomime season, with its annual seasonal production attracting combined audiences of 35,744 during its run.