How has Brexit Altered the Landscape of the UK Art Market?
Five years after the vote to leave the EU, Brexit’s impact on UK industry, including its art market, is profound and ongoing. Increased bureaucracy, combined with new legislation and regulations, has led to uncertainty and confusion within the market as art dealers and collectors struggle to navigate a new and changeable landscape.
The latest figures published in the 2022 Art Basel, UBS Global Art Market report show the value of art and antiques imported into the UK in 2020 was $2.1bn, down by a third on 2019. Imports fell a further 18% in 2022, leaving them at almost half the value of 2019. With 2023 looking set to provide more uncertainty, London’s status as Europe’s leading art hub is under threat.
One of the most significant impacts on the UK art market has been the decline in the number of art fairs, with the Art Newspaper reporting a fall from 35 in 2019 to 21 in 2021. The London art world has been hit particularly hard with Masterpiece and Olympia’s Art & Antiques Fair both cancelled. Owners cite escalating costs, and MCH Group elaborates that international applications for Masterpiece have fallen 58% since 2018. However, not everyone is pessimistic about the future. Simon Fox, Frieze chief executive, says: “In 2022, international participation at Frieze London was as strong as ever. London’s status remains high – we haven’t seen the post-Brexit exodus that some doomsayers predicted.”
Increased red tape has made the movement of art between the UK and the EU increasingly costly and complicated. Art Basel and UBS, reveal that 62% of European collectors said they were less likely to buy art from the UK post-Brexit. In addition, the strengthening of the euro against the pound has made it expensive for UK-based buyers to buy art from EU sellers. The flipside of this is an increase in demand for UK art from the US and Asia due to the weakened pound.
There are some clear advantages for the British art market – the ‘UK Global Tariff’ makes it cheaper for UK galleries to import art from non-EU countries, while the Temporary Admission Process allows European galleries to bring goods into the UK temporarily with full or partial relief of import duty. UK buyers also benefit from the 5% import VAT which is considerably lower than the 20% rate pre-Brexit.
Simon Fox, Frieze chief executive, says: “In 2022, international participation at Frieze London was as strong as ever. London’s status remains high – we haven’t seen the post-Brexit exodus that some doomsayers predicted.”
Many experts are confident the market can bounce back. A recent report published by the UK House of Lords states “creative industries accounted for £115.9 billion in 2019 – almost 6% of the UK’s entire Gross Value Added”, recommending increased tax relief to prioritise growth in a sector it describes as an “economic powerhouse”.
The UK also still has an enviable international reputation within the art world, producing top talent and pushing forward in terms of creative innovation. Analysts worldwide praise the UK for its innovative approaches to engaging with the future of arts and culture. Adapting to its new position in the global market by removing as many administrative and financial barriers to trade as possible, while embracing new creative technologies, could allow the UK to continue to be a major player in the international art market.
Words by Emily Eslea MacDonald
