A cut in VAT and a new tax on arena and stadium tickets are urgently needed to prevent the closure of popular music venues, MPs have said.
A report from the Culture, Media and Sport Committee said artists are facing a “touring cost crisis”, with venues halting live music or closing altogether at a rate of two a week.
The cross-party inquiry heard from the Music Venues Trust (MVT), which said 2023 was the most challenging year for the sector since the organization was founded in 2014, while Creative UK said the popular music sector had taken a “beating”.
In total, the number of popular music venues (GMV) decreased from 960 to 835 last year, a net decrease of 13%, representing a loss of up to 30,000 shows and 4,000 jobs.
The closures come against a backdrop of rising costs due to rising rents and energy bills, while the public cuts back on spending. due to the economic climate.
There has also been a change in behavior among younger people, who spend less on food and alcohol.
The report calls for a temporary reduction in VAT based on the venue’s ability to “stimulate grassroots musical activity and help the sector during the current closure crisis”.
The committee also recommended that a widespread voluntary tax on arena and stadium tickets be implemented by September, which should be used to create a support fund for venues, artists and promoters and not be passed on to music fans.
MPs said that if there is no agreement by September or if it fails to raise enough revenue to support the sector, the government should intervene to introduce a legal tax.
‘Music faces a dark future’
Dame Caroline Dinenage, chair of the committee, said: “We are grateful to the many dedicated locals who gave up their time to take part in our investigation.
“They delivered the message loud and clear that popular music venues are in crisis.
“The continued wave of closures is not only a disaster for music, artists and supporters in local communities across the country, but also puts the entire live music ecosystem at risk.
“If the grassroots, where musicians, technicians, tour organizers and promoters hone their craft, are allowed to wither and die, the UK’s position as a musical powerhouse faces a bleak future.”
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In addition to immediate financial assistance through a tax-funded support fund and a targeted temporary VAT cut, the report states that a comprehensive, fan-led review of live and electronic music should be carried out this summer to examine the challenges in the long term for the wider world. live music ecosystem.
The UK music industry brings billions of pounds into the economy, attracting national and international tourists to live events.
British pop star Adele got her start in popular venues. Photo: AP
But festivals, electronic music venues, gyms and arenas “are not isolated from the impacts” of the crisis and “promoters have less capacity to hold shows or make them financially viable”, the deputies warned.
The report was welcomed by industry figures, although Mark Davyd, chief executive and founder of MVT, said it “took a lot longer than any of us would have liked to get the positive change we all wanted to see”.
The trust – which represents more than 900 popular music venues across the UK – has previously raised concerns that emerging artists with the potential to be the next Ed Sheeran or Adele – both of whom began playing at youth level – could see their careers cut short on the ground, never reaching their full potential.
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