The live music sector provided a £6 billion boost to the UK economy last year according to new data from trade group LIVE, while also employing nearly 230,000 people. However, LIVE stresses that many of those operating at the grassroots of the sector are nevertheless struggling to survive and therefore the long called for VAT cut on tickets is still essential.
LIVE member the Music Venue Trust has also been calling once again for another measure to support grassroots live music: a levy on tickets for large-scale shows to fund schemes supporting venues, promoters and artists at the grassroots.
It has pointed out how much the rush to buy tickets for the Oasis reunion shows could have helped grassroots music if such a levy scheme was in place. Instead, it said, out of all the tickets sold “a Big Fat £Zero” has been “invested in the grassroots sector”. Unlike the VAT cut, though, the levy isn’t supported by all members of LIVE.
Launching LIVE’s new stats report, the group’s Chair Steve Lamacq says, “Last year, we saw much of the live music sector triumph over adversity; faced with a spike in costs as a result of inflation, the cost-of-living crisis and labour shortages, fans had more concerts and festivals than ever to enjoy”
However, he adds, “we cannot forget that urgent action is needed to support the many grassroots venues, artists and festivals which continued to struggle last year”.
LIVE’s new stats are based on data analysis from research agency CGA covering more than 55,000 gigs, concerts, festivals and events. Its report says that “the sector’s contribution to the UK economy last year exceeded £6 billion for the first time”, which is a 17% increase on 2022 and 35% up on pre-pandemic figures.
Growth was largely driven, LIVE says, “by concert revenues which jumped by 19% year-on-year and accounted for nearly three quarters (73.5%) of the total, boosted by the tours of major artists, such as Beyoncé and Coldplay”.
Since the pandemic the upper end of the live sector has very much bounced back, but venues, artists and promoters at the grassroots, and even sometimes in the mid-tier, have been struggling as production costs surge. And while ticket prices continue to increase with the big shows, the cost of living crisis has made hiking ticket prices unviable elsewhere in the sector.
These challenges were shared with MPs in the UK Parliament during an inquiry into grassroots venues earlier this year. A cut of the VAT charged on tickets similar to that instigated during the pandemic was discussed during that inquiry, as was the ticket levy proposal, which MPs supported in a subsequent report. They said the industry should have a plan in place for introducing a levy by this month, but that hasn’t happened.
Music Venue Trust used all the hype around the Oasis shows to remind the political community that the deadline for putting a levy system in place has been missed. In a tweet targeted at culture ministers Lisa Nandy and Chris Bryant, MVT said that the reunion shows will likely result in £200 million+ in ticket sales, £20 million+ in ticket charges and £2 million+ in facility fees, but “a Big Fat £Zero invested in the grassroots sector”. Bryant tweeted back a simple “noted”.
Commenting on LIVE’s stats and lobbying priorities, the group’s CEO Jon Collins says, “2023 delivered significant growth for many sections of the live music ecosystem. We had some of the biggest names in music sell out tours and festivals across the UK, but we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs”.
“We welcome the commitments made by the government to put the creative industries at the centre of the UK’s economic growth plan”, he adds. “Reintroducing a lower rate of VAT on tickets would bring the UK into line with international competitors and would be pivotal in unlocking the economic potential of our industry”.
“With a lower rate of VAT on tickets”, he concludes, “we could see the sector grow further, supporting more jobs, generating more investment, and putting on more gigs, festivals and tours for people to enjoy”.
