The Stage

Prepare for the worst

Published Monday 21 December 2009 at 15:40

The theatre industry is well known as a harbinger of doom, a Cassandra. Grants are never enough and the end of the world is nigh.

Unfortunately, the recent publicity that all is well and audiences are increasing refutes this. And whilst the current economic downturn is purported to be affecting all, the theatre industry remains aloof. Whilst this is of great relief, it portends ill for the future. Grants for a successful industry are not needed. The subsidised theatre is possibly looking into an abyss. There is a very real problem that this success will harm the stability of future invention, and that reprises will proliferate and casts diminish as the subsidy reduces. If the theatre is doing so well why are so many actors unemployed?

The unpalatable truth is that the mainstay of a strong theatre is founded on the support of television. And whilst the theatre purports to be strong, the television financial backbone has virtually ceased. Advertising is temporarily holding up exploiting the commercialism of Christmas. But the outlook is indeed bleak. Cracks are appearing in the facade of the current spin of confidence.

It is incumbent upon the theatre to prepare for the inevitable downturn. It is no secret that many shows will only survive to the new year. The euphoria of Christmas will give way to the realisation that the business is indeed in a parlous state. Of course there is no easy solution in the current climate.

VAT increases on January 1 from 15% to 17.5% from whence it came a year ago. Whilst small in itself (it is only about a 54p increase on a £25 ticket) the psychological effect will be immense and cutbacks in the personal budgets will begin. And the theatre, a non-essential, will be the first to suffer.

There is no easy solution but knowing the problem is an advantage. The theatre industry should not get carried away with the current “success”. It must make plans for a downturn.

Everyone knows someone who is unemployed. Be prepared.

Robert Breckman

Consultant

Breckman and Company

Chartered Certified Accountants

South Molton Street

London W1