Yesterday, the Chancellor Of The Exchequer Jeremy Hunt unveiled the latest government budget, disappointing representatives of the UK’s live music industry. Despite extending the orchestra tax relief, the budget failed to deliver on a key demand of the industry – a cut in the VAT charged on tickets. Several representatives from various live music organisations responded negatively to the proposed budget, calling it a “missed opportunity” for growth in the sector and providing urgently needed support for grassroots music.
The CEO of Live (Live music Industry Venues & Entertainment), Jon Collins, expressed frustration on the lack of action in cutting VAT rates. He pointed out how 20% VAT rates on tickets in the UK are vastly out of step with competitors in Europe and North America, becoming a limiting factor in the number of gigs, tours and festivals. The reduction in shows means more pressure on grassroots music venues that are closing down at an alarming rate. Meanwhile, John Rostron, CEO of the Association of Independent Festivals, called for the VAT reduction due to the impact of COVID and Brexit. The Night Time Industries Association also expressed its “profound disappointment” over the government’s failure to cut VAT rates.
The UK music industry called for VAT cuts last February, asking Hunt to throw the sector a “vital lifeline” to save venues from closure. Figures such as Tom Kiehl, UK Music’s Interim Chief Executive, suggested reducing the VAT rate on tickets from 20% to 10% as a “boost for consumers, music professionals and venues”. The news follows a report published last January discovering a “disaster” facing grassroots music venues. According to the Music Venues Trust’s report for 2023, soaring energy prices, landlords increasing rate amounts, supply costs, business rates, licensing issues, noise complaints, and the continuing shockwaves of COVID-19 put increased pressure on the livelihoods of music venues.
As a result, several festivals have either cancelled or taken a fallow year for 2024. The Night Time Industries Association also found that 31% of UK nightclubs closed last year, with an average of two closures per week. It’s time for the government to recognise the issue, and take decisive steps to support the sector. The livelihoods and businesses of music venues are not political pawns but vital contributors to community well-being across the UK. In simple terms, it’s time for change
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