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The UK's live industry reacts to the new Jobs Support Scheme which will see the gov and firms cover two-thirds of workers' wages for six months
By IQ on 24 Sep 2020
The UK’s live industry has reacted to the government’s new Jobs Support Scheme and Winter Economy Plan, unveiled earlier today by chancellor Rishi Sunak.
The emergency scheme will see the government and firms top up workers’ wages, covering up to two-thirds of their hours for the next six months, after the furlough scheme ends on 31 October. This means employers will have to pay 55% of an employee’s pay and the government will cover 22%.
As part of the Winter Economy Plan, the temporary reduction of VAT rates from 20% to 5% for the hospitality sector will remain in place until 31 March 2021, rather than 13 January.
The announcements have garnered lukewarm reactions from some of the industry’s key figures – many of which have emphasised that the new scheme will only go part way to sustaining the sector.
“We welcome this economy-wide intervention from the chancellor. However, it still leaves many hundreds of thousands of workers in events, arts and cultural parts of the economy with a grim future,” says Digital, Culture, Media and Sport (DCMS) committee chair Julian Knight.
“The truth is, three times as many people in these sectors are currently on furlough than the national average, which suggests that the Job Support Scheme may not be able to stop unprecedented redundancies and many organisations from facing extinction.”
“It still leaves many hundreds of thousands of workers in cultural parts of the economy with a grim future”
Earlier today, the chair of the DCMS Committee today made recommendations to Oliver Dowden, secretary of state for Digital, Culture, Media and Sport, calling for immediate and robust action by the government to prevent culture sector from collapse.
Elsewhere, Michael Kill, CEO at Night Time Industries Association, says he’s grateful and relieved that the News Jobs Support Scheme is throwing a “much-needed lifeline to hundreds of thousands of workers in the night-time economy,” but stresses that more support will be needed.
“We are seeking more clarity about what this announcement means for the majority of businesses in the night-time economy who do not know when, or if, they will be able to reopen their doors. These businesses cannot be allowed to collapse as the diversity and creativity of the UK’s night-time economy will die with them.
“We are also very concerned that the extension of business support loans will result in more painful debt for those already overburdened financially, many of whom are languishing in up to three-quarters of commercial rent debt with no certainty on when this will be due.
“More support will be needed. The majority of our sector is still unable to even open and trade. Night-time economy businesses have been unfairly targeted by the new 10 pm curfew, which we believe has no scientific basis and will prevent businesses from rebuilding the necessary revenue to stay afloat. The government must rethink this curfew and consider further sector-specific support for our industry if it wants to save Britain’s most loved cultural institutions.”
“No part of the live music industry is in a position to pay 55% of its employees’ salaries”
Mark Dayvd, CEO of Music Venue Trust, says: “The measures announced today do not address the need for the UK government to support different sectors of our society which are subject to different restrictions because of its own actions to control the virus. This is a very specific challenge to the live music industry, which is not permitted to trade by government restrictions but has not seen any sector support directly offered in this financial intervention.”
“No part of the live music industry is in a position to pay 55% of its employees’ salaries in order to access the government support which is entirely conditional on doing that,” he adds.
Paul Reed, CEO of the Association of Independent Festivals (AIF), has also weighed in, saying: “While the extension to the VAT cut is welcome, these measures are not even a band-aid for a sector that remains severely wounded.
“Festivals support 85,000 jobs in the UK and our most recent member surveys suggest redundancies of at least 50.5% across the sector, some of which have unfortunately already taken place.
“With the sector still not generating any income at all this year, many employers will simply not be in a position to pay 55% of their employees’ salaries to access the support offered by the government’s new job support scheme.
“This remains a broad-brush approach, and we urgently need targeted support.
“We are awaiting the outcome of Cultural Recovery Fund applications on 5th October and this will determine if the independent festival sector will in fact receive the support that it urgently requires.”
News of the Jobs Support Scheme follows the government’s previous announcement of a new 10 pm curfew, as part of a slate of new restrictions intended to combat a second wave of Covid-19.
Concert venues and theatres will be allowed to stay open past a new 10 pm curfew, though only if the performance has already started.
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