Exclusive:'Financial challenges' for RSNO despite record ticket sales
The RSNO said it had had a record year of ticket sales
The Royal Scottish National Orchestra has warned of “financial and economic challenges” despite record ticket sales as it revealed its surplus for the past year almost halved amid spiralling costs.
Chief executive Alistair Mackie told The Scotsman that “massively” increased European touring costs as a result of Brexit red tape, combined with static income from the Scottish Government, a £120,000 a year increase in National Insurance contributions and the loss of its £150,000 Glasgow City Council grant, had left it in a worse financial position - despite income rocketing by almost 50 per cent to £12.9m compared to before the pandemic.
He warned that the orchestra was struggling to pay a competitive wage to its 66 fully-employed musicians.
Glasgow-based RSNO said its overall financial performance from core operations shows a net surplus of £643,000, down from £1.17 million in 2024, as total expenditure increased by 11 per cent this year to £9.9m, according to the accounts for the year to the end of March filed with Companies House.
The accounts revealed staff costs had increased by five per cent over the period, coupled with expenditure increases to support hired engagements and tours. However, the orchestra said there had been record audience numbers both at home and internationally.
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Mr Mackie told The Scotsman: “Since the pandemic, our income has grown something like 50 per cent, but the downside is the things that we have been hit with.”
He said the orchestra had welcomed 137,415 audience members across 99 live concerts in Scotland and Europe over the period - but pointed to changes in legislation relating to Brexit which mean orchestra tax relief will no longer apply to productions being prepared for performances in Europe in future.
He said: “Brexit has increased costs of touring massively for UK arts organisations. But at the same time, we feel that touring is more important than ever, so that Scotland doesn't become isolated. To have a national orchestra in Europe is a big statement. We see it as a real strategic importance, but the costs of doing it now are going up and up.
“We are managing to balance it, but we think it's so important that we will use income from somewhere else, if necessary, to support touring.”
He pointed to the RSNO’s annual grant from the Scottish Government, its principal funder as one of the Scottish National Performing Companies - which he said had remained largely static since 2008. The accounts showed a reduction in grant from the government, down 10 per cent to £3.7m in the year to March.
He said: “It's frustrating that you are being able to generate more income from ticket sales, from philanthropy, from commercial recording and yet all the increase in income is is just going out the door in increased costs.”
Mr Mackie said musicians were financially better off teaching music in a secondary school than pursuing a professional career and warned that the national orchestra could not compete with other similar employers.
A starting salary for a musician at the RSNO is £35,000 a year, compared to around £41,000 at the BBC Scottish Symphony Orchestra.
Mr Mackie said: “We don't feel we can be competitive as an orchestra unless we offer a full time salary the same as other orchestras. And unless we are competitive with these, we're not going to get the best players. So our battle at the moment is to try to keep salaries, to try and get salaries to be more competitive.”
Scottish Opera moved to a freelance model for its chorus, rather than employ singers on a full time basis, 21 years ago.
Chair Gregor Stewart said in a statement attached to the accounts: “While we can report a stable financial position, bolstered by strong season programming and ticket sales, continued fundraising and eligibility for Orchestra Tax Relief, we must also acknowledge the ongoing financial and economic challenges we face.
He added: “Our commitment to maintaining a fully employed orchestra model, while creating sustainable career opportunities and contributing to Scotland's cultural economy, means we face particular cost pressures that freelance orchestra models do not encounter.”
A Scottish Government spokesperson said: “Thanks to a £34 million uplift in the Scottish culture budget, a record number of artists and organisations are now receiving regular funding.
“The culture budget has increased and will be increasing further, providing additional opportunities for further support and stability for the sector. The Scottish Government is committed to investing at least £100 million more annually in the arts by 2028-29, having increased investment by £49.8 million to-date, to strengthen the sector’s foundations and support its further development.”
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