Chancellor failing to protect ‘cultural crown jewel’, says live music industry

The live music sector has criticised the Chancellor’s spring statement for failing to protect “one of the UK’s cultural crown jewels”.

Industry groups welcomed the business rates discount announced by Rishi Sunak in the Commons on Wednesday.

But they said the package failed to address the ongoing impact of Covid-19 on the cultural sector, as well as increases in rent, supplies and services.

Greg Parmley, chief executive of music industry group Live, said: “Live music is facing new and unprecedented challenges that threaten to wreck one of the UK’s cultural crown jewels – a 7.5% increase in VAT on tickets, wholesale cost increases and major ticket cancellations due to spiking Covid cases. At the same time, the last remaining help from Government is being withdrawn.

“While we welcome the business rates discount, we need further measures that can provide a cash injection to all areas of the sector, such as action on VAT.”

Paul Reed, chief executive of the Association of Independent Festivals (AIF), said he was “disappointed” the Chancellor had not responded to their calls for an extension to the 12.5% VAT rate on festival tickets beyond March.

He added: “Festival organisers are experiencing cost increases of between 20% to 30%, which is way beyond rapidly rising inflation, with extreme pressure along the entire supply chain.

“We urge the Government to look at this again and maintain the reduced rate on VAT.”

Music Venue Trust chief executive Mark Davyd said the Chancellor’s spring statement failed to address the “extraordinary financial pressures” faced by concert venues.

He said: “Music Venue Trust warmly welcomes the business rates discount, which will maintain the 50% business rates for grassroots music venues that the Government announced pre-pandemic.

“With no action for businesses on energy bills, NI (national insurance) liability and the missed opportunity of action on VAT that would support the sector to recover from the Covid crisis, the outcome of the budget is that none of the extraordinary financial pressures being placed on venues have been mitigated or alleviated.”

Micheal Kill, chief executive of the Night Time Industries Association, cited factors including the ongoing impact of Covid-19 on ticket sales, increased operational costs and a Christmas season heavily impact by the Omicron variant.

He added: “It is for all these reasons that we called on the Chancellor before the spring statement to produce a package that included an extension of VAT & business rates reliefs, a cancellation of the proposed NI hike, and action on businesses energy bills and fuel duty, to allow the sector financial headroom to survive in something resembling its pre-pandemic form.

“It is very disappointing that today he took none of these steps.”