Live music contributed £6bn to UK economy in 2023

The UK live music sector contributed a record £6.1 billion (€7.2bn) to the economy for the first time last year, according to freshly published data from trade body LIVE.

LIVE’s annual UK Live Music report shows live music achieved a year-on-year uptick of 17% since 2022 and an increase of 35% on the last pre-pandemic year of 2019. Live music also supported jobs for nearly 230,000 people last year – an increase of 9.4% since 2019.

The data analysis from research agency CGA by NIQ covers more than 55,000 gigs, concerts, festivals and events. It reveals the growth in the sector last year was driven largely by concert revenues, which jumped by 19% year-on-year and accounted for nearly three quarters (73.5%) of the total, boosted by major tours by acts such as Beyoncé and Coldplay.

Despite the positive headline figures however, LIVE warns that significant challenges remain for grassroots music venues, small festivals, and up-and-coming artists, with 36 festivals cancelled and 125 grassroots music venues closed permanently last year.

“2023 delivered significant growth for many sections of the live music ecosystem,” says LIVE CEO Jon Collins. “We had some of the biggest names in music sell out tours and festivals across the UK, but we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs.”

“With a lower rate of VAT on tickets, we could see the sector grow further”

In response, LIVE is calling on the government to reduce the current rate of 20% VAT on tickets. It also supports the recommendation in the Culture, Media and Sport Committee’s report on Grassroots Music Venues that government should introduce a temporary cut to VAT to stimulate grassroots music activity, while undertaking a comprehensive economic analysis of the impact of a cut to VAT on all concert tickets.

“We welcome the commitments made by the government to put the creative industries at the centre of the UK’s economic growth plan,” adds Collins. “Reintroducing a lower rate of VAT on tickets would bring the UK into line with international competitors and would be pivotal in unlocking the economic potential of our industry. With a lower rate of VAT on tickets, we could see the sector grow further, supporting more jobs, generating more investment, and putting on more gigs, festivals and tours for people to enjoy.”

On a regional basis, the data shows that London accounted for nearly a third (30.6%) of 2023’s total live music revenue, followed by Manchester at 7.4%. Glasgow took the lead in Scotland with 5.5% of the UK’s share, while other cities in the top 10 included Edinburgh, Birmingham, Cardiff, and Belfast.

“Our live music sector is world-class offering concerts, festivals, gigs and more to suit every music taste,” adds LIVE chair Steve Lamacq. “Last year, we saw much of the live music sector triumph over adversity; faced with a spike in costs as a result of inflation, the cost-of-living crisis and labour shortages, fans had more concerts and festivals than ever to enjoy.

“However, we cannot forget that urgent action is needed to support the many grassroots venues, artists, and festivals which continued to struggle last year.”

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