The Featured Artists Coalition and Musicians’ Union have published an open letter urging the UK government to follow the recommendations of Parliament’s culture select committee regarding introducing a £1 ticket levy on arena and stadium concerts to support grassroots live music. In particular that ministers consider a statutory levy, and that any funding scheme should benefit artists and promoters as well as venues.
In a report in May, the select committee said that the industry should put in place a blanket levy system to support grassroots music by September this year and, if that didn’t happen, that “the government should introduce a statutory scheme”. No such system is as yet in place.
A small number of big name artists, including Coldplay, have committed to voluntarily support grassroots venues via the Music Venue Trust. However, according to the FAC and MU - while that is to be welcomed - “a blanket levy would ensure a consistent and reliable flow of funding, and allow for a fair distribution to all relevant parties at grassroots level for the long-term future”.
The committee's report followed a public hearing where both artists and venues told MPs that, while the upper end of the live sector has fully bounced back following the COVID pandemic, the grassroots is in crisis. FAC CEO David Martin was among those to give evidence. Launching the new open letter, he says, “We made it clear to MPs that any solution to the ‘cost of touring crisis’ facing UK grassroots music must involve the direct funding of artists”.
MPs agreed with that position, he adds, and “concluded that a proposed levy on arena and stadium shows must benefit artists and independent promoters - as well as grassroots venues. However, since the publication of their report, the FAC has become increasingly concerned about the direction of travel”.
To that end, the FAC and MU “call on the government to help get this conversation back on track to deliver the £1 ticket levy that grassroots live music so desperately needs”. Artists and fans are also urged to sign the open letter making that demand.
The live music industry is divided on this issue. There is widespread support for the levy in principle, though some argue it should be up to individual artists to decide if the levy is charged on their shows. Others want a scheme where it automatically applies to all concerts at the arena and stadium level.
The FAC and MU also want to ensure that money from any levy system flows to a fund that benefits artists, promoters and venues. The Music Venue Trust supports that position too. Though, while big name artists support the grassroots community on an ad hoc basis, it is harder to ensure that happens. If an industry-wide levy was introduced, money could flow to a central fund - most likely managed by live industry trade group LIVE - and then be made available in a way that benefits venues and artists.
The industry-wide levy could be set up by the live sector itself on a voluntary basis or the government could introduce a statutory levy in law. The MU and FAC want to ensure the latter approach is still on the agenda, even though an industry-led scheme could still be the solution.
“We are concerned about the industry’s ability to enact the mechanism voluntarily”, their open letter states. “In its absence, donations made by arena-level artists won't necessarily lead to direct funding opportunities for artists performing at grassroots level. Therefore, we believe that the government should retain the option to intervene and implement a statutory levy”.
Commenting on the letter for the MU, the union’s Head Of Live Kelly Wood says, “If artists can’t rely upon a healthy and financially viable grassroots live sector, the industry as a whole suffers. We urgently need to see the introduction of a robust and sustainable funding mechanism, allowing artists to carry out tours without significant risk. Without this kind of support, we will lose artists from the music community, and the talent pipeline will be severely disrupted”.