The UK music industry is calling on Chancellor Jeremy Hunt to reduce VAT rates for venues ahead of the spring budget. UK Music, which represents British music performers, producers and others in the sector, wants the 20% VAT rates on gig tickets to be cut in half. The group claims that reduced rates would “boost customers” and increase business at music venues. Interim Chief Executive at UK Music, Tom Kiehl, asks for the reduction of rates down to 10% before Hunt’s budget announcement on Wednesday 6th March.
The request comes at a challenging time for the music industry, with hundreds of venues struggling with high energy bills and labour costs, as well as the cost of living crisis. Music Venues Trust has described 2023 as the most challenging year yet for grassroots music venues. The Night Time Industries Association recently reported a loss of 32% of clubs in the UK since the pandemic.
Current VAT rates for tickets in the UK are the third highest in Europe, twice the European average. The rates in countries such as Germany and Belgium are 6% and 7% respectively. UK Music argues that reducing the tax burden on venues will increase investment at grassroots level, while helping to revive local venues and economies across the country.
Mr. Kiehl believes it is vital that the Chancellor alters VAT rates to halt the loss of some of the UK’s most popular music venues, which play a significant role in local economies and communities. The music industry needs support during this challenging time, particularly as venue owners and other industry workers bear the brunt of high costs and diminished revenue.
In an effort to support the grassroots industry, UK music is urging the Chancellor to help music venues and give local communities and economies a much-needed boost. Cutting the VAT on gig tickets will be a lifeline during a time of great financial difficulty for the industry
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