Industry experts are proposing a £1 charge on concert tickets to establish a financial resource for supporting local live music. They are sharing with lawmakers how increasing expenses are causing a dire situation for smaller performance spaces.
During the hearing, the culture, media, and sport committee received input from promoters, artists, and industry representatives who overwhelmingly supported implementing a levy on tickets. The revenue generated from this levy would be allocated to smaller venues, 125 of which were forced to close in 2023.
Mark Davyd, the head of Music Venue Trust, proposed a system similar to the one used in France in which a single fund of approximately €200m (£172m) would be made available for venues, artists, and promoters to request funding. This fund would be financed through a percentage taken from the overall ticket sales at large venues.
MVT has been advocating for a tax since December 2023, when the beloved small venue Moles in Bath was forced to permanently close, adding to the 16% of grassroots spaces that also closed in 2023.
The MVT proposed the establishment of a charitable organization to manage the fund. The organization’s board would consist of members from the industry, instead of being controlled by the government.
The MVT shared a photo on Tuesday of the lineup for this year’s Leeds and Reading festival, excluding the performers who began their careers at smaller local venues. Only five artists were included.
The report released by The Music Venue Trust in January revealed that 38% of grassroots venues in the UK reported a negative financial outcome, despite a rise in ticket sales. The overall profit margin for the sector was a modest 0.5%.
Many people had different views on who should be responsible for paying the £1 charge, whether it should be the ticket purchasers who already pay booking fees, or the arena venues themselves.
John Drury, chairman of the National Arenas Association, stated that implementing the £1 levy for arenas would result in a decrease of roughly 20% in profits.
Drury informed the committee about a method known as the “Enter Shikari model,” in which the band donated £1 from every ticket purchased for their OVO Arena Wembley show in February 2024. This approach is favored by NAA members as a way to alleviate the strain on grassroots venues.
Vice-chair of the Music Managers Forum, Kwame Kwaten, advocated for mandatory implementation of the levy on arena ticket sales instead of leaving it as an optional choice. He expressed concern that if the option was given, some may choose not to support it, unlike the band Enter Shikari, known for their generosity.
Additional experts proposed implementing a fan-driven evaluation of local music in a similar manner to English football. Others recommended decreasing the value-added tax (VAT) on tickets, which is currently set at 20%, a significantly higher rate compared to France, Italy, and Germany.
The Members of Parliament were informed that smaller establishments are facing more challenges due to planning requests and noise grievances. This is evident in the situation of Night & Day cafe in Manchester’s Northern Quarter, where its existence was put at risk following complaints from a single resident living next to the establishment.
Davyd said: “The Northern Quarter, one of the most well-known cultural districts in the country, has been described as a ‘mixed-use’ area, effectively placing 14 other music venues in Manchester at risk of a resident complaint.”
The CEO of Live, Jon Collins, expressed worries about the Baltic Triangle in Liverpool, as developers are constructing residential buildings near or next to performance venues.
He expressed concern about the “agent of change” policy, which currently does not adequately protect live music venues. This principle states that new developments must bear the responsibility of accommodating existing businesses in the area, such as covering the cost of soundproofing.
“We currently have venues in the Baltic Triangle that are facing challenges. While we all support the concept of the ‘agent of change,’ it requires stronger provisions,” he stated.
According to Davyd, half of the cases that MVT deals with involve financial problems, and an additional 20% pertain to planning and development concerns.
Notifications and comments:
The British Academy has released research stating that live performing arts may be at risk of serious threats and possible collapse unless they build up their resilience. This warning coincides with concerns about smaller venues.
According to the study on the effects of the Covid-19 outbreak on the industry, it is important for the performing arts to have a solid resilience plan supported by both national and local authorities.
Source: theguardian.com
