PRESS RELEASE : Minister urges live music industry to introduce voluntary ticket levy to protect grassroots venues [November 2024]

The press release issued by the Department for Culture, Media and Sport on 14 November 2024.

Creative Industries Minister calls on live music industry to introduce voluntary ticket levy on stadiums and arenas to protect grassroots music sector, including venues, festivals, artists and promoters.

• Creative Industries Minister calls on industry to introduce levy on stadium and arena tickets
• Levy would help ensure sustainability and future success of grassroots music sector, including venues, festivals, artists and promoters

The UK’s live music industry has today been urged by the government to join forces to help safeguard the future of the grassroots music sector.

In the government’s response to the Culture, Media and Sport Select Committee’s report on grassroots music venues, Creative Industries Minister Sir Chris Bryant has called on the live music industry to work together to introduce a voluntary levy on all stadium and arena tickets to help support grassroots venues, festivals, artists and promoters – in agreement with the Committee’s recommendation.

Ministers now expect the sector to take forward proposals for a voluntary levy.

The grassroots music sector is the backbone of the UK’s £6.7 billion music industry, with many of Britain’s best-selling artists, including Ed Sheeran, Adele, Coldplay and Stormzy, starting their careers in grassroots venues. The sector offers emerging artists opportunities to hone their craft, employs more than 28,000 people including stage managers, security and sound and lighting engineers, and supports local economies across the country.

However, in recent years grassroots venues have faced considerable challenges such as the pandemic and inflation, leading to a high number of closures and job losses.

Creative Industries Minister Sir Chris Bryant said:

Grassroots music venues are one of the UK’s most valuable and yet undervalued cultural assets. They are where bands try out new material, where whole new genres are born, where musicians experiment and where audiences get to experience the raw power of live music.

These venues support thousands of jobs and are a vital part of our local communities. Without a flourishing grassroots music industry the rest of our music industry will wither.

It is crucial that we work together to support the grassroots including venues, festivals, artists and promoters. That is why I am urging the industry voluntarily to introduce a ticket levy on the biggest commercial players, to help ensure the health and future success of our entire live music industry for decades to come.

While valuable steps have already been taken by artists such as Coldplay and Sam Fender, who are donating a portion of their upcoming tour revenues to support the grassroots sector, and by industry body LIVE which is establishing a charitable trust to distribute proceeds of a voluntary levy, there is still more to do.

It is the government’s view that an industry-led levy within the price of a ticket would be the quickest and most effective way for a small portion of revenues from the biggest shows to be invested in a sustainable grassroots sector. This would help fans to access local music venues, provide even more performance opportunities for emerging talent and benefit the live music industry as a whole.

Ministers have made clear that they want to see a voluntary levy come into effect as soon as possible for concerts in 2025, with clear communication to fans on the purpose of the levy and the benefits it will bring to the grassroots sector.

The government will consider the implementation and effectiveness of a voluntary levy before determining whether further action is needed.

Mark Davyd, CEO and founder, Music Venue Trust, said:

Music Venue Trust warmly welcomes this positive response from the government. We strongly support their stance on the necessity and desirability of a grassroots contribution and believe this response sets out a clear and achievable path for the live music industry to swiftly adopt such a contribution.

We look forward to working with both industry and government to make this financial contribution a reality as soon as possible. Industry-led investment will enable fans across the country to keep accessing the live music that they love whilst also ensuring the talent pipeline to the arena and stadium level is secure and growing. It is the perfect example of a win-win solution for all parties.

The CMS Select Committee report identified significant additional opportunities to return our grassroots live music sector to growth, create jobs, spread opportunity, and deliver thousands of additional events that bind our communities together. We will continue to work with the government to comprehensively address all the report’s recommendations and deliver a sustainable and bright future for the UK’s grassroots venues, artists and promoters.

Jon Collins, chief executive, LIVE, said:

We are glad government has entrusted our sector to play our part in addressing the crisis in grassroots music. Driving forward an industry-led solution to the challenges currently being experienced by venues, artists, festivals and promoters remains our number one priority. Alongside government’s work to deliver an improved trading environment, we are accelerating our work on the development of the LIVE Trust and associated funding to help distribute money to the places it’s needed most.

Together with government, we will continue our work to help safeguard the future of grassroots music, and ensure our sector remains world-leading, brings joy to millions, and delivers economic growth in towns and cities across the UK. We will regularly update on our progress of the LIVE Trust.

The government’s response follows funding announced for the Creative Industries at the Autumn Budget, which DCMS has confirmed will include help to continue the Supporting Grassroots Music Fund.

The Fund, delivered by Arts Council England, enables grassroots music venues, recording studios, promoters and festivals to apply for grants of up to £40,000 to help them develop new revenue streams, make repairs and improvements, hire staff and enhance the experience of millions of gig-goers across the UK.

ENDS

Notes to editors:

• The full Government response to the Culture, Media and Sport Select Committee’s report on grassroots music venues can be found here.
• The Government intends to create a fairer business rates system that protects high streets, supports investment and is fit for the 21st century. It was announced at the Autumn Budget that business rates relief for retail, hospitality and leisure (RHL) properties, including grassroots music venues, will be extended for one year at 40% up to a cash cap of £110,000 per business.
• A Discussion Paper has been published, setting out priority areas for reform and inviting stakeholders to a conversation about transforming the business rates system.