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The UK live industry has welcomed a DCMS report calling on the government for a clear reopening timeline, tailored support schemes and extended VAT breaks for the sector
By IQ on 23 Jul 2020
The UK’s Digital, Culture, Media and Sport (DCMS) Committee has stated that the government’s support package for cultural industries came “too late for many”, and has called for further urgent sector-specific measures.
In the ‘Impact of Covid-19 on DCMS Sectors’ report, the committee states that the government’s recent £1.57 billion support package for the arts, while welcome, “will not be enough to stop mass redundancies and the permanent closure of our cultural infrastructure”.
In addition to the support package, which came after an intense day of lobbying from the UK live industry, the committee calls for an extension to the government’s furlough scheme – currently set to expire at the end of October – until mass gatherings are permitted; continued workforce support measures, including enhanced measures for freelancers and small companies; clear “if conditional” timelines for when events will be able to reopen, with a date for stage five of the government’s plan to reopen events set by 1 August at the latest; and “technological solutions”, such as app-based testing and tracking systems, to allow audiences to return without social distancing.
The committee also recommends the creation of a long-term pandemic reinsurance scheme, ensuring cultural industries are covered by “adequate insurance” in the future, as well as “long-term structural support” to rebuild audience figures, including sector-specific tax reliefs and a value-added tax (VAT) cut for the sector for the next three years. The British government has currently cut VAT on event tickets to 5% until the end of the year.
As for the previously announced funding, the committee demands the government “publish eligibility criteria and application guidance as soon as possible”, as well as “ensur[ing] that the funding reaches recipients no later than October 2020”.
“To reduce uncertainty, the government must publish eligibility criteria as soon as possible”
The DCMS committee is calling for “sector-specific versions” of the current job retention and self-employed income support schemes to be implemented by October 2020 “at the latest” and kept open until income returns to “sustainable levels”. The committee notes that existing support schemes, such as the self-employed income support scheme and coronavirus business interruption loan scheme, do not cover many working in the live industry.
The report also points out that a large number of festivals, outdoor events and city centre venues have also been unable to access grants earmarked for the retail, hospitality and leisure industries, as the scheme requires businesses to occupy properties with a certain rateable value.
Using data gathered from across the live industry, the committe highlights the threats posed to the UK’s venues and festivals, with over 90% of grassroot music venues in Britain currently face permanent closure, as estimated by the Music Venue Trust (MVT), and the 23 UK arenas making up the National Arenas Association set to lose almost £235m in ticket sales over a six-month period.
As for the festival sector, the report state that: “The seasonality of the industry means that cancellations over spring and summer mean a complete loss of income for the year ahead, which could have devastating consequences for the SMEs and self-employed workers in the live events supply chain.”
The Association of Independent Festivals (AIF) has previously stated that 92% of its member festivals are facing permanent collapse.
“We are witnessing the biggest threat to our cultural landscape in a generation,” comments DCMS committee chair Julian Knight.
“We are witnessing the biggest threat to our cultural landscape in a generation”
“The failure of the government to act quickly has jeopardised the future of institutions that are part of our national life and the livelihoods of those who work for them. Our report points to a department that has been treated as a ‘Cinderella’ by government when it comes to spending, despite the enormous contribution that the DCMS sectors make to the economy and job creation.
“We can see the damaging effect that has had on the robustness and ability of these areas to recover from the Covid crisis. We urge the government to act on our recommendations, to recognise the value these sectors provide and imagine how much bleaker the outcome for all without their survival.”
Representatives from across the UK live industry have welcomed the DCMS recommendations. UK Music acting CEO Tom Kiehl has called the document a “watershed report in the fight for survival for many companies and individuals working across the music industry.”
“We fully support the conclusions of today’s important report and want to send out thanks to the committee for recognising the value in our industry,” comments Phil Bowdery, chairman of the Concert Promoters Association and executive president of Live Nation.
“This report demonstrates that a sector-specific deal to support the industry, conditional timelines for reopening without social distancing and long-term structural support are going to be vital in ensuring the survival of the live music in the UK.
“We look forward to continuing to work with the government to ensure that the entire sector can be supported through this time.”
“This report demonstrates that a sector-specific deal to support the industry is going to be vital in ensuring the survival of the live music in the UK”
Mark Davyd, CEO of MVT, commends the recognition of the “urgency of short-term measures to prevent the catastrophic loss of vital infrastructure”, as well as more long-term measures aimed at “restor[ing] the sector to health and to future proof it against threats”.
From a production point of view, Andy Lenthall, general manager of the Production Services Association (PSA) says it is “hugely heartening” that the DCMS has recognised the “vital part” suppliers and technicians play in the cultural ecosystem.
AIF CEO Paul Reed similarly welcomes the findings of the report “which specifically acknowledges that the UK’s thriving festival and live events sector has been particularly badly hit by this crisis”.
“We’re particularly pleased to see that our recommendations for long-term relief, including extensions of existing employment support schemes and an extended VAT cut, have been taken onboard,” says Reed.
“We look forward to working further with DCMS to ensure that the festival sector, which generates £1.75bn for the UK economy and supports 85,000 jobs, can survive and continue to thrive into 2021 and beyond.”
The report is available to read in full here.
Photo: Chris McAndrew/UK Parliament (CC BY 3.0) (cropped)
This article forms part of IQ’s Covid-19 resource centre – a knowledge hub of essential guidance and updating resources for uncertain times.
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