MPs call for arena ticket levy to save grassroots music venues
MPs are calling for a ticket levy on concerts at arenas and stadiums to raise funds for grassroots venues to help them amid rising costs and the risk of closures.
Along with a suggested VAT break for smaller venues, the proposals were included in report signed by MPs on the culture, media and sport committee that emphasised the importance of these venues to the wider music ecosystem.
Caroline Dineage, the chair of the culture, media and sport committee, said: “If the grassroots – where musicians, technicians, tour managers and promoters hone their craft – are allowed to wither and die, the UK’s position as a music powerhouse faces a bleak future.
“It is time that the government brought together everyone with a stake in the industry’s success, including music fans, to address the long-term challenges and ensure live music can thrive into the future.”
The report proposed an initial voluntary levy on tickets for gigs at arenas and stadiums that would be used to establish a support fund for venues, artists and promoters. If by September there was not enough financial support for this fund, the report said the government should introduce a statutory levy.
It also said the costs should not be passed on to music fans, and should be built into the existing price of a concert ticket.
The proposals mark a turnaround from November, when John Whittingdale, the Conservative MP and a former culture secretary, said during discussions on the sector: “We have no plans to impose a ticket levy.”
David Martin, the chief executive of the Featured Artists Coalition and Annabella Coldrick, the chief executive of the Music Managers Forum, commended the proposals but reiterated the urgency of the situation.
They said: “The entire ecosystem needs support. While this mechanism should be mandatory, the clock is now ticking to get a process in place before September.”
The inquiry was launched by the grassroots venue charity the Music Venue Trust (MVT) in October. The MVT has been lobbying for a stadium and arena levy since December, when the historic small venue Moles in Bath was forced to close – one of 125 which closed last year.
Anecdotal evidence from two consultations with independent venues across the UK, partnered with data provided by industry bodies such as the MVT and the live music umbrella body Live, was used as evidence in the report. Some of the venues that were consulted include Birmingham’s Suki10c, Manchester’s Old Abbey Taphouse, Sheffield’s Dryad Works, London’s Colour Factory, and the Brudenell Social Club in Leeds.
Mark Davyd, the chief executive of the MVT, said venues faced shared challenges such as rent, high energy prices and minimal profit from tickets.
The government must respond to the select committee report within two months of its publication.