UK Government backs voluntary grassroots levy

The UK government has urged the live industry to introduce a voluntary ticket levy to support the grassroots music sector in its response to the Culture, Media and Sport (CMS) Committee’s report.

Published in May, the CMS report recommended an arena-level levy, administered by a trust led by a sector umbrella body, to be put in place “before September 2024” to safeguard grassroots venues. But it is yet to come to pass despite acts including Coldplay, Sam Fender and Enter Shikari having each pledged donations.

Nevertheless, ministers say they now expect the sector to take forward proposals for a voluntary levy, which they want to come into effect as soon as possible.

The response stopped short of committing the Government to a statutory backstop, instead pledging to use its “convening power” to generate an industry-led solution.

The Government refused to accept the Select Committee’s recommendation that it should institute a fan-led review of music and also knocked back the long-requested VAT reduction, called for both by industry and the Select Committee.

Trumpeting it as “one of the UK’s most valuable and yet undervalued cultural assets”, creative industries minister Sir Chris Bryant said the rest of the touring business will “wither” without a “flourishing” grassroots scene.

“These venues support thousands of jobs and are a vital part of our local communities,” he said. “It is crucial that we work together to support the grassroots including venues, festivals, artists and promoters. That is why I am urging the industry voluntarily to introduce a ticket levy on the biggest commercial players, to help ensure the health and future success of our entire live music industry for decades to come.”

“The lack of a firm deadline for movement risks allowing matters to drift”

The CMS Committee has welcomed the stance, but has called for ministers to set a clear deadline for the industry to act before the government intervenes. It adds that if no significant progress is made, it will hold a hearing with the sector in six months’ time.

“The sheer number of venues in our local communities being forced to shut up shop each week has hammered home the stark reality of the struggles facing artists, promoters and others working in grassroots music,” says CMS Committee chair Dame Caroline Dinenage MP. “There are warnings of an even gloomier future.

“While the government has dialled up the volume on the message that swift action on a levy is needed from the bigger players who pack out arenas and stadiums, the lack of a firm deadline for movement risks allowing matters to drift.

“Without healthy roots, the entire live music ecosystem suffers, so it is vital that the wider industry recognises the urgency of coming up with a scheme to direct a proportion of profits back to where many careers began. The committee will keep banging the drum to make sure both the industry and government plays it part in protecting our live performance ecosystem.”

“The message is clear – get around the table and get this done or expect a statutory levy”

The current activity follows years of lobbying from the Music Venue Trust (MVT) for a compulsory £1 levy on tickets sold for UK live music events above 5,000 capacity, amid the “cost of touring crisis” facing the circuit.

“The government’s response is so robust and unequivocal in its support for our grassroots music venues, artists and promoters, that it is now a question of how and when the grassroots ticketing contribution from stadium and arenas is enacted, and not if,” says the MVT. “The ball is firmly in the court of the music industry to quickly and voluntarily establish the mechanisms for delivering the grassroots ticketing contribution.”

The LIVE Trust, an industry-created charitable body which would collect and distribute funds, is currently in the process of being set up with the UK charity regulator.

“We are glad government has entrusted our sector to play our part in addressing the crisis in grassroots music,” adds LIVE CEO Jon Collins. “Driving forward an industry-led solution to the challenges currently being experienced by venues, artists, festivals and promoters remains our number one priority.

“Alongside government’s work to deliver an improved trading environment, we are accelerating our work on the development of the LIVE Trust and associated funding to help distribute money to the places it’s needed most.”

“Everyone knows grassroots live music is in crisis. The current situation is untenable”

Michael Kill, CEO of the Night Time Industries Association, emphasised that any fund created needed to support the whole range of live music professionals.

“It is crucial that this approach remains ecosystem-led, considering the broader spectrum of creatives, technicians, and professionals who make up the live music sector,” he says.

“We must ensure these measures benefit not just the venues but also the full range of associated creatives and support roles that underpin the industry. By working together—industry leaders, government, and fans alike—we can create a sustainable future for live music, preserving local venues and fostering a vibrant, diverse music culture across the UK.”

Last month, the Featured Artists Coalition (FAC) and Musicians’ Union (MU) penned a joint open letter calling for a blanket ticket levy.

“Everyone knows grassroots live music is in crisis,” says MMF CEO Annabella Coldrick in response to the government’s statement. “The current situation is untenable. Every week I hear from music managers trying to do the impossible and bridge catastrophic shortfalls in their artists touring budgets. A ticket levy on all large-scale live music events to support touring artists at this level to get out on the road remains the most practical solution. It is now imperative that we in the industry stand up and deliver it.”

Elsewhere, Association of Independent Festivals (AIF) CEO John Rostron backed the government’s response, but expressed his disappointment that it was not exploring different models of VAT including lower levels of VAT on grassroots music activity, such as a reduction of VAT on festival ticket sales to 5%.

“We reject the idea that any reduction would need to be funded,” says Rostron. “Venues and festivals are closing and will continue to do so. With lower VAT, many would remain open and make a positive contribution to HM Treasury and revenue collection.

“It must be emphasised that the relationship between festivals and grassroots music venues is highly interlinked. Audiences, artists, promoters and crew flow in and out of these spaces as one, creating opportunities, driving creativity and developing talent.”

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