With nominations closing next Friday, there's still time to nominate for IQ's annual list of 10 future music industry leaders
Sign up for IQ Index
The latest industry news to your inbox.
Industry figures have reacted angrily to news of the Chancellor’s Jobs Support Scheme update, which favours businesses legally required to shut back down.
By IQ on 09 Oct 2020
The UK’s live music industry has found little comfort in the government’s latest support scheme, revealed today by chancellor Rishi Sunak.
The chancellor announced that the six-month Jobs Support Scheme, which is due to launch on 1 November and replace the furlough scheme, will be expanded to support businesses whose premises are legally required to shut for some period over winter as part of local or national restrictions.
Eligible businesses will receive cash grants up to £3,000 per month depending on rateable value and employees will receive two-thirds of their salary (or 67%), up to a maximum of £2,100 a month, from the government.
Under the scheme, employers will not be required to contribute to wages and will be asked to cover NICS and pension contributions only.
However, the live music industry – the vast majority of which remains shuttered due to restrictions, ranging from the six-month 10 pm curfew, to capacity restrictions with social distancing, to festivals simply not allowed to go ahead – has found no solace in the news
“The new scheme risks overlooking businesses who can technically open their doors but cannot trade economically”
Phil Bowdery, chair of Concert Promoters Association, says: “It seems like the chancellor has overlooked the plight of the tens of thousands of people in the live music industry who are currently unable to work due to Covid-related government restrictions. By focussing his criteria so narrowly on buildings which are allowed to open, the new scheme risks overlooking businesses who can technically open their doors but cannot trade economically due to the restrictions on gatherings in clubs, concert halls and arenas.
“Revenue in the live music industry will be down a catastrophic 80% in 2019 and over 70% of the employees in the industry are currently utilising the furlough scheme. If the government fails to ensure that all sectors that can’t work can access the new scheme, there will be tens of thousands of additional job losses coming before the end of the year.”
Greg Parmley, chair of the UK Live Music Group says: “The UK’s live music business remains one of the most viable industries in the UK, but is still unable to operate. Our entire workforce remains in jeopardy while venues, events and festivals are forced to remain shuttered. The chancellor’s most recent announcement gives no comfort to the skilled and talented workforce who face a desperate and bitter winter.”
“This is in no way reflective of the costs that are being incurred by businesses in our sector”
Michael Kill, CEO at Night Time Industries Association, says he tentatively welcomes the extension but believes the government’s financial support has not gone far enough to safeguard the sector.
“We will need further clarity on the details of the scheme and which businesses are eligible, given thousands of night-time economy businesses have been unable to open or operate for seven months now due to government restrictions. Most businesses and workers in the sector remain in desperation and despair, with no sector-specific or government understanding of the underlying issues the industry is facing or the financial implications of closures.”
“The introduction of the £3,000 monthly grant for businesses under local lockdown is insufficient and, for many, too little too late. This is in no way reflective of the costs that are being incurred by businesses in our sector and will do nothing to alleviate the significant financial burdens they are under.”
“Festivals, concerts and clubs, along with their support crews, cannot survive another winter with no income and no government scheme”
Annabella Coldrick, chief executive of Music Managers Forum says: “The plight of the UK’s live music business has been the focus of two parliamentary debates this week. With furlough ending in a few weeks time, our entire industry has desperately sought reassurance from the government that they understand how critical this situation is becoming, and what our country stands to lose if thousands upon thousands of viable jobs are not sufficiently supported and safeguarded.
“The chancellor has already had to backpedal once this week in a discussion about retraining, and following today’s announcement we need urgent clarification as to whether anyone in our sector will benefit from expansion to the Job Support Scheme. If there is no Plan B, then the impact will be catastrophic on the artists, freelance workers and small businesses on who British music depends.”
“We need urgent clarification as to whether anyone in our sector will benefit from expansion to the Job Support Scheme”
Andy Lenthall, GM of the Production Services Associations, says: “Once again, the technicians and technical suppliers to live events have been ignored. Thousands of individuals and businesses that rely on live events, still unable to work due to government restrictions and suffering catastrophic drops in revenues as a result will receive no support from the chancellor’s recent adjustments in support. All the pain, none of the gain.”
Steve Heap, general secretary of the Association of Festival Organisers says: “The chancellor’s new scheme appears to have failed the viable live music industry that was the first to close down. What is, effectively a furlough scheme extension aimed at businesses that have opened and now have to close again, completely misses out the businesses in the live music industry that have been closed for over six months. Festivals, concerts and clubs, along with their support crews, cannot survive another winter with no income and no government scheme to see them through until next spring.”
Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days. The scheme will begin on 1 November and will be available for six months, with a review in January.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.