UK Government to Introduce Voluntary Ticket Levy for Grassroots Music Venues
The UK government is poised to implement a voluntary levy on tickets for concerts held in large stadiums and arenas. This initiative aims to generate much-needed funds for smaller music venues that have faced significant challenges in recent years, particularly following the pandemic and the impact of rising inflation.
Officials contend that an “industry-led” levy, integrated within the ticket price, would provide a swift and effective means for the revenues from major concerts to support the grassroots music sector. According to the Department for Culture, Media and Sport (DCMS), “Ministers have expressed a desire to see this voluntary levy operational by 2025, with clear communication to fans regarding its purpose and the benefits it will bring to the grassroots music community.”
The DCMS has also indicated that ministers expect the music industry to expedite these proposals for implementation in the upcoming concert season. Creative Industries Minister Sir Chris Bryant emphasized the significance of grassroots music venues, stating, “These venues are among the UK’s most precious yet underappreciated cultural assets.” He elaborated, “They serve as the testing grounds for bands, the birthplace of new genres, and the spaces where musicians can experiment. Moreover, these venues not only support thousands of jobs but also play a vital role in our local communities.”
Sir Chris further noted, “A thriving grassroots music scene is essential for the overall health of our music industry. It is crucial that we collaborate to bolster the grassroots sector, encompassing venues, festivals, artists, and promoters.” He urged the industry to voluntarily adopt a ticket levy targeting the largest commercial players, ensuring the long-term vitality and success of the entire live music ecosystem.
The cross-party committee on culture, media, and sport, which advocated for this proposal, welcomed the ministerial endorsement but insisted on establishing a “firm deadline” for the industry to take action before the government intervenes directly. The committee has stated that it will convene a hearing with industry stakeholders in six months if substantial progress is not made.
Industry Reactions
In response to this development, the Music Venue Trust expressed its support for the government’s recognition of the need for grassroots contributions. They argued that “industry-led investments will ensure fans nationwide can continue to enjoy live music while simultaneously securing and nurturing the talent pipeline that leads to arenas and stadiums.”
Additionally, Michael Kill, CEO of the Night Time Industries Association, emphasized the importance of grassroots venues, stating, “These spaces are not merely cultural hubs; they are essential for nurturing new talent, fostering creative communities, and providing a platform for diverse musical genres. Without focused intervention, we risk undermining the foundation of the UK’s internationally acclaimed music industry.”
He added, “Our sector is grappling with a critical crisis, as venues are closing at an alarming rate due to unsustainable operational costs and diminishing revenues. The proposed levy, along with a reduction in VAT, would deliver crucial financial relief, equipping venues, artists, and promoters with the support necessary to survive.”
The urgency for relief is underscored by a recent report indicating that 2023 has been described as a “disastrous” year for grassroots music venues, marking the worst year on record with 125 venues shuttering their doors across the UK—an alarming rate of two closures per week.
In a positive response to this crisis, several bands have already begun to allocate a portion of their ticket sales to aid smaller venues. Notable examples include Coldplay and Enter Shikari, both of whom have established their own levies during extensive tours to contribute to grassroots survival. Enter Shikari has committed to donating £1 from every ticket sold for their 2024 arena tour to the Music Venue Trust, while Coldplay has pledged to donate 10% of profits from their upcoming UK stadium tour to support smaller venues in need.
