A new levy on arena and stadium tickets and a cut in VAT are urgently needed to support grassroots music venues across the country as they struggle to cope with a crisis of closures and soaring costs say a committee of MP’s in a report out today
The report from the cross-party Culture, Media and Sport Committee, which highlights how small local venues integral to the pipeline of professional creative and technical music talent are stopping performances or closing entirely at a rate of two per week.
The Committee also heard about how artists are facing a “cost of touring crisis”, while promoters are struggling to get shows off their spreadsheets and into venues.
On top of immediate financial help through a levy-funded support fund and a targeted temporary VAT cut to help stem the tide of closures, the report says a comprehensive fan-led review of live and electronic music should be set up this summer to examine the long-term challenges to the wider live music ecosystem.
The Committee inquiry, launched at the Music Venue Trust’s Venues Day in October 2023, heard from across the sector1 of the scale of the crisis facing venues and the impact this is having on artists and all those that rely on them for business.
The MVT described 2023 as the most challenging year for the sector since the trust was founded in 2014, while Creative UK said the grassroots music sector took a ‘battering’.
In total the number of GMVs declined from 960 to 835 last year, a net decrease of 13%, representing a loss of as many as 30,000 shows and 4,000 jobs.
The report says that given the urgency of the crisis, a voluntary levy on arena and stadium concert tickets would be the most feasible way to have an immediate impact, creating a support fund for venues, artists and promoters administered by a trust led by a sector umbrella body. The Committee also calls for the industry to ensure the levy cost is not passed on to music fans. If there is no agreement by September or if it fails to collect enough income to support the sector, the Government should step in an introduce a statutory levy, the report adds.
On VAT relief, the Committee calls for a temporary cut based on venue capacity, with the Government undertaking analysis to assess the impact to inform future decisions
