The UK government is planning to implement a voluntary levy on concert tickets sold for stadiums and arenas to support smaller venues that have faced financial difficulties in recent years due to the pandemic and rising inflation.
The government believes that an 'industry-led' levy incorporated into ticket prices would be the most efficient and effective method for generating funds from large-scale events to aid the grassroots music sector. According to the Department for Culture, Media and Sport (DCMS), ministers are keen to see this voluntary levy in place as early as 2025, with clear communication to concert-goers about the levy's purpose and its benefits for grassroots venues.
The DCMS also emphasized that ministers expect the music industry to act on these proposals swiftly for events in the coming year. Creative industries minister Sir Chris Bryant highlighted the importance of grassroots music venues, describing them as 'one of the UK's most valuable and yet undervalued cultural assets.' He noted that these venues are crucial for new music experimentation, genre development, and audience engagement, supporting thousands of jobs and being integral to local communities.
Bryant added, 'Without a flourishing grassroots music industry, the rest of our music industry will wither,' stressing the need for collective support for grassroots venues, festivals, artists, and promoters. He urged the industry to voluntarily introduce a ticket levy on major commercial players to ensure the long-term success of the entire live music industry.
The cross-party committee on culture, media, and sport, which proposed the levy, welcomed the ministerial support but called for a 'firm deadline' for industry action before government intervention. The committee plans to hold a hearing with the sector in six months if significant progress is not made.
The Music Venue Trust welcomed the government's stance on the importance of grassroots contributions, arguing that 'industry-led investment will enable fans across the country to continue enjoying live music while ensuring the talent pipeline to the arena and stadium level remains secure and growing.'
Michael Kill, CEO of the Night Time Industries Association, emphasized that grassroots venues are vital for nurturing new talent and fostering creative communities. He warned that without targeted intervention, the UK risks losing the foundation of its globally renowned music industry. Kill added that the industry is facing an existential crisis, with venues closing at an alarming rate due to unsustainable costs and reduced revenues. The proposed levy and VAT reduction would provide much-needed financial relief, supporting venues, artists, and promoters.
A recent report revealed that 2023 was a 'disastrous' year for grassroots music venues, with 125 venues closing in the UK—a rate of two per week. Several bands, including Coldplay and Enter Shikari, have already started donating part of their ticket sales to support smaller venues. Enter Shikari pledged £1 from every ticket sold for their 2024 arena tour to the Music Venue Trust, while Coldplay plans to donate 10% of profits from their upcoming UK stadium tour to support smaller venues.
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