UK Music Industry Appeals to Jeremy Hunt for a VAT Cut on Concert Tickets

In an urgent call to action, renowned figures in the UK music industry are urging Jeremy Hunt, the Chancellor of the Exchequer, to consider a significant VAT cut on concert tickets. This move is seen as a potential savior for numerous iconic venues facing the threat of shutting down permanently.

VAT Cut: A Critical Support Mechanism

UK Music, which stands as the collective voice for Britain's commercial music industry, is advocating for a VAT reduction from the current 20% to 10%. This proposal, set forth in anticipation of the upcoming Budget on March 6, aims to stimulate the live music sector by making tickets more affordable for fans, providing much-needed relief to artists, and securing the future of music venues.

The VAT rate in the UK is notably higher compared to the European Union average, with some countries like Belgium and Germany applying rates as low as 6% and 7%, respectively. Tom Kiehl, interim chief executive of UK Music, emphasizes the critical timing for the Chancellor's intervention, highlighting the extreme challenges faced by the industry, including several venues and individuals within the sector.

The Plight of Grassroots Venues

Grassroots music venues have been severely impacted by various economic pressures such as the cost of living crisis, skyrocketing energy bills, and the financial devastation left in the wake of the Covid pandemic. A staggering number of about 125 such venues, crucial in the early careers of artists like Ed Sheeran and Radiohead, were lost in the last year alone. The loss of these venues endangers the UK's vibrant live music ecosystem which sustains music tourism and contributes significantly to the economy.

Auro Foxcroft, manager of notable grassroots London venues Village Underground and eartH Hackney, has stressed that government support would be immensely beneficial. He insists that saving these struggling venues is not only important for the music industry but would also be advantageous for the government in the long run.

Foxcroft points out the crucial role of grassroots venues in nurturing upcoming talent and how their closure at an unprecedented rate poses a risk to the future of UK's music success. He also supports the recommendation for larger music venues to contribute through a tax levy to aid smaller counterparts, a concept akin to the relationship between Premier League and grassroots football.

A Ray of Hope for the Industry

Mark Davyd, CEO of the Music Venue Trust, welcomes the VAT reduction request, highlighting it would inject roughly £2.5 million into the grassroots music scene, enabling more substantial venues to potentially support smaller ones. Davyd acknowledges past governmental efforts but stresses the need for profound changes to address the sector's structural issues and support emerging talents.

music, industry, support