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Measures announced as part of the first Budget under the UK’s new Labour government have put more than 350 grassroots venues (GMVs) at risk of immediate closure, according to the Music Venue Trust (MVT).
Chancellor Rachel Reeves delivered her Autumn Budget in the House of Commons today (30 October) – almost four months on from Labour’s landslide general election victory.
Reeves announced £40 billion (€48bn) of tax rises, with business rates relief set to be cut from 75% to 40% from 1 April next year ahead of a planned overhaul of the system in 2026.
MVT CEO Mark Davyd has shared his disappointment the move, which he says was made in spite of extensive briefings about the negative knock-on effects on the scene, pointing out that 43% of GMVs in the UK made a loss last year.
“The immediate impact is to create a demand for £7 million in additional premises taxes from a sector that, in 2023, returned an entire gross profit across all 830 such venues in the UK of just £2.9 million,” says Davyd. “Over 350 grassroots music venues are now placed at immediate risk of closure, representing the potential loss of more than 12,000 jobs, over £250 million in economic activity and the loss of over 75,000 live music events.”
“Changes in April 2026… will be of no use for the hundreds of music venues that are now likely to be lost before this challenge is finally met”
He continues: “Simultaneously with announcing this new tax demand, the government acknowledged the faults and inequities inherent in the business rate system, promising to deliver a new lower rate of taxes on physical, hospitality and leisure premises in April 2026.
“The challenges around business rates and grassroots music venues have been known and accepted for over a decade. Changes in April 2026 are to be welcomed, but will be of no use for the hundreds of music venues that are now likely to be lost before this challenge is finally met with a full, long overdue reform.”
Davyd puts forward three possible solutions, starting off by urging the government to have a rethink and restore the 75% rate relief for GMVs. Alternatively, he argues it could create an emergency fund of up to £7m (€8.4m) that the most under-threat venues could access to meet the new tax demand.
Lastly, his third suggestion is that every GMV in the country install a temporary business rate levy of 50p (€0.60) applied to every ticket sold and used directly to meet the £7m demand until the new business rate system is installed.
“Unless the government is willing to think again, it unfortunately may be the only possible option to stop a complete collapse of live music in our communities,” he adds.
“The decision to reduce this relief will increase costs on grassroots music venues already struggling to keep their doors open”
LIVE CEO Jon Collins was less critical of Reeves’ announcement, saying the trade body recognised the chancellor had “tough choices” to make.
“We welcome the retention of business rates relief but the decision to reduce this relief will increase costs on grassroots music venues already struggling to keep their doors open,” he adds. “The live music sector is a key contributor to economic growth, generating over £6 billion in 2023, and creating positive social, cultural, and economic impact across every city, town and village in the UK. It is critical that the next Budget focuses on growth and enables sectors like live music to achieve their full potential.”
While the chancellor extended business rates relief for night-time economy businesses by an additional two years at a reduced 40%, halving the relief, the Night-Time Industries Association (NTIA) says the benefit is negated by a series of tax hikes that threaten the sector’s financial stability.
“We are in one of the toughest trading environments the UK has seen in decades for our sector, fraught with a legacy of challenges from previous crises,” says NTIA CEO Michael Kill. “While the chancellor has listened to our plight, the extended business rates relief is a minor concession amongst the array of tax increases and fiscal shifts, which will take some time to evaluate and consider regarding sector impacts. However, in simple terms, it is still double the contribution of the current business rates.
“This relief will be immediately undercut by increased NIC Employer contributions and thresholds with increased individual employer contributions to businesses, net increase in alcohol duty and overarching workforce increases, although rightly intended to support the workforce, will have severe repercussions for already struggling businesses across the sector. This shows an acknowledgement of core businesses within nightlife but lacks consideration for the broader industry outside of bricks and mortar businesses and the vital and diverse role our night-time economy plays within our communities and the UK’s culture and economy.”
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UK live music organisations have welcomed the extension to business rates relief for grassroots venues announced by Chancellor Jeremy Hunt as part of his Autumn Statement.
Relief was extended from 50% to 75% from 1 April this year, and Hunt confirmed today that the scheme would run for a further 12 months.
Jon Collins, CEO of trade body LIVE, the voice of the UK’s live music and entertainment business, has spoken out in favour of the move, saying it is both “pivotal” for the grassroots circuit and addresses a “core ask” of the recently published LIVE Music Manifesto 2023.
“LIVE welcomes the extension of the Retail, Hospitality and Leisure relief scheme for another year in today’s Autumn Statement,” he says. The UK’s live music industry is an engine of growth, generating £5.2 billion in 2022 and employing over 228,000 people last year, with a gig held every four minutes. However, grassroots venues have been operating on a knife edge so it’s crucial that government continues to support this critical part of our sector with the right reliefs and funding mechanisms.
“The government is committed to supporting growth and innovation across the creative industries. The extension of business rates relief will be pivotal for those grassroots venues that are responsible for so much of the R&D in the live music sector.”
The Music Venue Trust (MVT), which works on behalf of over 900 venues across England, Scotland, Wales and Northern Ireland, also backed the development.
“It was essential to keep this relief in place and we are pleased that our presentations to Treasury were listened to and acknowledged by this outcome”
“The potential cancellation of this relief presented the possibility of an additional £15 million in pre-profit taxation falling onto a grassroots sector suffering a severe crisis; over 100 venues have already closed in the last 12 months,” says MVT CEO Mark Davyd. “It was essential to keep this relief in place and we are pleased that our presentations to Treasury were listened to and acknowledged by this outcome.
“We hope that this further extension into 2025 for this relief will provide the necessary window of opportunity for the government to complete the full review of Business Rates on Grassroots Music Venues, which it committed to in January 2019.”
Davyd notes that the Chancellor’s statement also included the announcement of a significant uplift to minimum wage.
“The grassroots sector is notoriously undervalued and underpaid, from the artists performing through all levels of roles and staffing, up to and including the venue operators themselves,” he says. “In 2022, the average grassroots music venue operator paid themselves £20,400 per annum, delivering 66 hours of work per week at a rate of £6.43 per hour. An uplift to fees and wages across the sector is long overdue.
“We look forward to working with the Chancellor, HM Treasury and DCMS to identify the necessary funding which can deliver this statutory increase to minimum wage and extend the scope and scale of it so that everyone in the grassroots sector can be adequately rewarded for their work.”
Association of Independent Festivals (AIF) CEO John Rostron adds: “We support measures announced in the chancellor’s Autumn Statement that will help businesses in the broader grassroots music sector, such as the freeze on business rates.
”But, as far as independent festivals are concerned, what is urgently needed is the lowering of VAT to 5% on ticket sales. We will continue conversations with the government towards that end.”
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The UK’s live music industry has reacted with disappointment to chancellor Rishi Sunak’s spring statement, which was delivered today in the House of Commons.
Calls to extend the VAT break on live event tickets sales past the end of this month again went unheeded, with the temporary 12.5% rate now set to revert to 20% from 1 April. There were also no improvements announced to the government’s £800m insurance scheme for live events
Trade body LIVE (Live music Industry Venues and Entertainment) has appealed for the government to work with the industry to consider a cultural VAT rate of 5% on ticket sales.
“Live music is facing new and unprecedented challenges that threaten to wreck one of the UK’s cultural crown jewels – a 7.5% increase in VAT on tickets, wholesale cost increases and major ticket cancellations due to spiking covid cases,” says a spokesperson for the organisation. “At the same time, the last remaining help from government is being withdrawn.”
However, better news for the sector arrived in the form of the previously announced 50% discount on business rates, which was confirmed by the chancellor.
“While we welcome the business rates discount, we need further measures that can provide a cash injection to all areas of the sector, such as action on VAT,” adds the LIVE spokesperson. “We are calling on the chancellor to look again at these measures, which would help secure the sector’s recovery and allow our £4.5 billion industry to continue boosting the UK economy.”
Association of Independent Festivals (AIF) CEO Paul Reed suggests the mini-budget has done little or nothing to assist the recovery of the festival circuit.
“We are disappointed that the chancellor has not responded to our repeated calls to grant an extension to the 12.5% VAT rate on festival tickets beyond the end of March”
“We are disappointed that the chancellor has not responded to our repeated calls to grant an extension to the 12.5% VAT rate on festival tickets beyond the end of March,” he says. “Festival organisers are experiencing cost increases of between 20-30%, which is way beyond rapidly rising inflation, with extreme pressure along the entire supply chain. We urge the government to look at this again and maintain the reduced rate on VAT.
“We also ask the government to urgently reconsider the removal of tax incentives to use certain biofuels. These should be maintained at the current rate as a transitional measure to encourage use of greener fuels at festivals. To do otherwise is completely contrary to the government’s objectives of incentivising energy efficiency and reducing emissions.”
Despite giving the thumbs-up to the business rates discount for grassroots music venues, Music Venue Trust chief Mark Davyd is keen to highlight other concerns.
“With no action for businesses on energy bills, or NI liability, and the missed opportunity of action on VAT that would support the sector to recover from the Covid crisis, the outcome of the budget is that none of the extraordinary financial pressures being placed on venues have been mitigated or alleviated,” he says. “This budget has failed to respond to inflationary increases from rent, supplies, and services running in excess of 20% across the sector.
“We note that the government has recommitted itself to supporting business investment, especially research and development. We again ask that the secretary of state for culture should enter into meaningful discussions with the live music industry to create R&D tax incentives and direct financial support to achieve that outcome.”
The Night Time Industries Association (NTIA), meanwhile, went further still in its criticism, declaring itself “extremely disappointed”, warning the sector faces a “perfect storm” of challenges over the next 12 months, particularly in light of the cost of living crisis.
“We called on the chancellor before the spring statement to produce a package that included an extension of VAT and business rates reliefs, a cancellation of the proposed NI hike, and action on businesses energy bills and fuel duty, to allow the sector financial headroom to survive in something resembling its pre-pandemic form,” says NTIA chief Michael Kill. “It is very disappointing that today he took none of these steps.”
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The UK chancellor of the exchequer, Rishi Sunak, has today (17 March) announced a £330 billion package of guaranteed loans for the country’s businesses.
Further measures include a business rates exemption for venues and other businesses in the leisure, hospitality and retail sectors, regardless of rateable value, and grants of up to £25,000 for businesses with a rateable value of under £51,000.
From the start of next week, the government will additionally extend its business interruption loan scheme for small- and medium-sized enterprises, which will offer loans of up to £5 million, interest free for the first six months, and support liquidity among larger firms.
Those affected by the virus will also be offered a three-month mortgage holiday, while the chancellor said he is prepared to “offer whatever further financial support” he decides is necessary.
Social venues, pubs, clubs and theatres that have pandemic cover will now be able to claim against their insurance, Sunak added.
The measures come following yesterday’s advice that UK citizens stop all “non-essential contact” and avoid public gatherings, in a move that caused “uncertainty and confusion” among the country’s live music industry.
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Businesses with a rateable value of below £51,000 will not pay any business rates – the tax levied on non-domestic property in the UK – for the next year, in what comes as a boost to the country’s grassroots music sector.
UK chancellor Rishi Sunak announced the rates abolishment today (11 March) as part of the government’s budget for 2020, which focuses on how to ease the economic impact of the Covid-19 outbreak. The rates relief will run from April 2020 for twelve months.
Full business rates relief previously only applied to firms with a rateable value – the value used to determine payable business rates, based on size, location and other factors – of below £12,000.
“In our manifesto last year, the government promised to increase their business rates retail discount by 50%, but we can go further,” says the chancellor. “We are taking the exceptional step of abolishing business rates altogether.”
The tax cut, says Sunak, is worth over £1 billion and is set to save each business up to £25,000.
A review into the long-term future of business rates will be concluded by the autumn.
“We are taking the exceptional step of abolishing business rates altogether”
In 2017, a 4% hike in business rates saw the overheads paid by many small businesses across the UK skyrocket. Grassroots venues in particular have suffered, having remained exempt from the tax relief granted to other small retailers for years.
Venue operators across the UK celebrated a 50% cut in rates in January, calling it “a profound and positive step” for the sector.
That same month, iconic London music venue the 100 Club became the first venue in the country to receive full business rates relief, under a new scheme put forward by Westminster City Council.
The venue, which has played host to the Rolling Stones, Oasis and the Sex Pistols, has been on the brink of closure at least three times in the past decade, with a third of UK venues closing in the same time period.
Speaking at Futures Forum on Friday, Mumford & Sons’ Ben Lovett, who operates London venues Omeara and Lafayette, lamented the loss of many UK grassroots venues and stressed the importance of having venues of all sizes for artists to perform in.
Mark Davyd of the Music Venue Trust (MVT) comments: “Music Venue Trust very warmly welcomes additional measures announced by HM Government in the budget to tackle the developing crisis provoked by Covid-19. We are particularly pleased that alongside the additional cut to business rates, the challenges Covid-19 presents to the smallest grassroots music venues, many of whom are too small to be in the existing business rates system, will be addressed via the small business grant fund, providing grants of up to £3000 to manage the emerging negative impacts.
“The coronavirus outbreak presents a new challenge for the live music industry and this welcome step will be a lifeline for some at this critical time”
“It remains the case that too many grassroots music venues in the UK have rateable valuations which are simply too high to benefit from either of these measures,” continues Davyd, “and those venues will need additional measures bringing forward to enable them to withstand this crisis.
“We also welcome the commitment to a review of business rates to be carried out this year, with the hope that this review will finally result in the creation of an accurate and relevant classification for grassroots music venues that will see an end to them being unfairly penalised in this outdated system.”
Acting UK Music CEO Tom Kiehl adds that the chancellor should “be hugely congratulated” for scrapping business rates.
“Music venues are the lifeblood of our industry,” continues Kiehl. “However, many are fighting for survival and need all the help they can get to remain open.
“The coronavirus outbreak presents a new challenge for the live music industry and this welcome step will be a lifeline for some businesses at this critical time.
“We ask the Government to constantly review financial support available to music businesses and employees in response to coronavirus and consider making further changes.”
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Iconic London music venue the 100 Club has become the first venue in the country to receive full business rates relief, under a new scheme to protect grassroots venues, put forward by Westminster City Council.
The 100% relief from business rates – the tax levied on non-residential property in the UK – will save the 100 Club over £70,000 a year, according to charity the Music Venue Trust, after the measures come into place on 1 April 2020.
The move helps to secure the future of the venue, which has hosted the likes of the Rolling Stones, Oasis, the Sex Pistols and Louis Armstrong since opening in 1942.
The 100 Club has been on the brink of closure at least three times in the past decade, saved by efforts from Westminster Council, Paul McCartney, Converse, Fred Perry and MVT.
Under the plans, music venues in Westminster are eligible for full relief if they are primarily a grassroots music venue and appear on the Greater London Authority’s register as such; the organisation running the venue is not for profit; and the venue is the borough of Westminster, preferably in the area of Soho.
“This is a game-changing approach from a local authority in supporting grassroots music venues”
The news comes as the UK live music industry celebrates the government’s decision to cut business rates in half for all eligible small- and mid-sized grassroots venues, announced earlier this week. Venues had previously remained exempt from the rates relief granted to other small retailers, such as bars and restaurants.
“I’m thrilled the 100 Club has been granted this new business rates relief. It means we can continue to support the careers of the hundreds of artists who take to our stage each year,” comments venue owner Jeff Horton.
“This is a game-changing approach from a local authority in supporting grassroots music venues. I hope that other local authorities will adopt a similar forward thinking approach to support the music industry.”
“Grassroots music venues play a key role in London’s thriving nightlife,” says London’s night czar Amy Lamé. “That is why we’ve worked closely with The 100 Club and Westminster City Council to secure its future.”
The night czar, who was appointed in 2016 to protect London’s nightlife, adds that the news serves “as a great example of what can be done to support venues in our city.”
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Venue operators and others from across the UK live industry have expressed their support for a 50% cut in business rates for small- and mid-sized grassroots music venues, in a “much-needed” boost for the country’s live venues.
After several years of campaigning by charity the Music Venue Trust (MVT), umbrella organisation UK Music and others, the government has slashed business rates – the tax levied on non-residential property in the UK – by half for music venues, saving grassroots music venues an average of £7,500 a year.
The decision releases over £1.7 million back into the grassroots live music sector, benefitting 230 venues across England and Wales. The news follows the establishment of a £1.5m Arts Council England fund dedicated to the grassroots sector last year.
The announcement comes as Independent Venue Week kicks off in the UK. Over 800 live shows will take place throughout the week at the UK’s best independent venues, including performances by Nadine Shah at the Cluny (300-cap.) in Newcastle, Frank Turner at the Exeter Tavern (220-cap. and Anna Calvi at the Windmill Brixton (150-cap.) in London.
“This is incredibly welcome news,” Tom Kiehl, deputy CEO of UK Music, tells IQ. “We have campaigned hard to get the recognition that music venues should qualify for rates relief.
“There is no uniform issue behind venue closures and other challenges remain in terms of planning and licensing, but this will make a real difference and will give more stability for venues, especially those living on the breadline,” says Kiehl, who notes the rates relief is a “profound and positive step” for the UK talent pipeline.
“We thank the government for being so forthcoming.”
“This will make a real difference and will give more stability for venues, especially those living on the breadline”
A 2017 hike in business rates has had a harmful effect on UK grassroots venues over the past few years, with venues being exempted from the tax relief granted to other small retailers. Over a third (35%) of UK venues have closed down in the past decade, including DHP Family’s the Borderline, which had hosted acts including Debbie Harry, Blur, Muse and Amy Winehouse over more than 30 years in business.
Venue operators have also reacted positively to the news. Richard Buck, CEO of TEG MJR comments: “We very much welcome the change in business rates. It’s a much-needed, positive step which will benefit the grassroots venues that are the foundations of our industry.”
The former MJR Group, which was acquired by Sydney-based TEG in August, looks after venues including the Tramshed (1,000-cap.) in Cardiff, the Mill (1,000-cap.) in Birmingham and the Warehouse (750-cap.) in Leeds.
Julie Tipping from Nottingham-based promoter and venue operator DHP Family says MVT has done “a fantastic job getting a significant discount rate relief for some grassroots venues”. However, they “are not yet sure what impact this will have for DHP’s venues”, which include London venues the Garage (600-cap.), Oslo (375-cap.) and the Grace (150-cap.), as well as award-winning boat venue Thekla (400-cap.) in Bristol.
“It’s a much-needed, positive step which will benefit the grassroots venues that are the foundations of our industry”
“It’s great news for grassroots venues in this country that are eligible,” adds Tipping, “the question will be how many that is and what will happen to any that don’t get this benefit in the long term.
“Everyone seems to agree that taxing bricks and mortar is outdated in an increasing digital age, so we need government to come up with a fairer taxation system.”
Bert Van Horck, CEO of independent UK promoter and venue operator VMS Live says: “We’re delighted that the government is supporting this important cultural sector with a reduction in business rates that will help up and coming talent.”
VMS Live, which operates mid-sized UK venues including Eventim Olympia Liverpool (1,960-cap.), Asylum in Hull (1,100-cap.) and the William Aston Hall in Wrexham (1,200-cap.), is dedicated to “operating the venues at the start of artists’ creative journey”, adds Van Horck.
“Business rates are one of our largest annual overheads,” says Rebecca Walker, assistant general manager of the Leadmill (900-cap.) in Sheffield.
“Everyone seems to agree that taxing bricks and mortar is outdated in an increasing digital age”
“Thanks to the incredible work of all of the MVT team, this significant reduction will really help us to invest in not only music and the arts, but the staff and infrastructure needed to continue putting on great shows for the people of Sheffield.”
Toni Coe-Brooker, of venue manager of the Green Store Door in Brighton (200-cap.), says the team is “relieved” by the news.
“The rate relief we will receive as a grassroots music venue will make a significant impact on our ability to continue doing what we do, supporting our local community and incubating new talent.”
Mark Davyd, CEO and founder of MVT, says the news is “another foundation stone” in the building of a “vibrant, sustainable, world class grassroots music venue sector”.
Davyd admits there is “still a lot to be done on this issue”, with collaboration needed with governments in Scotland and Northern Ireland to ensure “a level playing field” for venues’ access to business rates and public subsidies across the UK.
“It’s now time for recording, streaming and publishing interests to play their part,” adds Davyd. “Billions of pounds in revenue are being generated in the music industry from the music that is tested, developed, finds its audience and emerges from these vital spaces. PRS for Music, PPL, Universal, Warners, Sony, Spotify, Apple and Google now need to come to the table and tell us what they are going to do to make sure that continues to happen.”
This article will be updated with reactions as we receive them.
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London venue Borderline has announced it will close its doors this summer, after more than 30 years hosting acts including Debbie Harry, Blur, Muse, Amy Winehouse and the 1975.
Promoter and venue operator DHP Family, who bought the Borderline from Mama in 2016, has made the decision to close the 300-capacity venue by August 31 in the face of “ever increasing rents, rising business rates and ongoing redevelopment plans for Soho”.
According to music charity the Music Venue Trust (MVT), 35% of UK grassroots music venues have closed in the last decade. A 4% rise in business rates –the tax levied on non-residential property in the UK – has caused further problems for music venues, which are not eligible for the tax rebates applicable to other small businesses. Escalating London rents have also impacted many venues.
“This has been a difficult decision, but given intentions by the landlord to increase the rent significantly for a second time since we took it over in 2016 as well as plans to redevelop the building housing the Borderline, we now know the venue doesn’t have a long term future so it makes no sense for us to continue to invest,” says DHP Family managing director George Akins.
“This is a sad day for all of us who love live music and believe in grassroots venues”
“We’ve had an amazing two years at Borderline with some fantastic shows and want to thank everyone for their support from agents, promoters and artists to all the thousands who have come to the gigs and club nights.
“We’ve put our all into trying to revive this iconic venue but unfortunately, it has been impossible to turn into a sustainable operation due to so many external factors. This is a sad day for all of us who love live music and believe in grassroots venues,” adds Akins.
DHP has retained the Borderline names and will consider opportunities to relocate the venue.
Akins says that DHP is “still committed to creating and running the best grassroots music venues in the country.” The company plans to reinvest in other parts of its portfolio, setting aside £1 million for work on Bristol’s Thekla, preparing for the 40th anniversary of Rock City in Nottingham and working on the opening of its first venue in Birmingham.
The announcement comes in the midst of a spate of good news for UK grassroots venues, as fellow DHP-owned London venue, the Garage, last week won protection from the local council which has pledged to safeguard the venue in case of area redevelopment and MVT recently announced £1.5 million in funding to protect and improve grassroots music venues, as well as support from industry-led initiatives.
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UK Music chief executive Michael Dugher has called chancellor of the exchequer Philip Hammond’s Spring Statement a “missed opportunity” to help grassroots venues, but vows to continue campaigning.
Dugher, along with Labour’s shadow culture minister Kevin Brennan, met chancellor Hammond in February for urgent talks regarding business rates relief for grassroots music venues.
The music industry representatives urged Hammond to ensure live music venues benefit from the new business rates retail discount that applies to pubs, restaurants and other small businesses.
Senior politicians from across the main British political parties have shown support for the campaign to make grassroots venues eligible for business rates rebates, but action has yet to be taken.
The 2017 revaluation of business rates – the tax levied on non-residential property in the UK – resulted in a 31% increase in business rates payable by grassroots venues. A UK Live Music Census showed that 33% of small music venues reported that the increases had an ‘extreme, strong or moderate’ impact on their existence.
“The chancellor missed a great opportunity with his Spring Statement to give some much-needed help to hard-pressed grassroots music venues”
“The chancellor missed a great opportunity with his Spring Statement to give some much-needed help to hard-pressed grassroots music venues,” comments Dugher, who says it is “ludicrous” to classify pubs and clubs as “not similar” to music venues.
“Our chance of developing future talent is put in jeopardy if performers cannot find a place to play, nurture their talent and grow their audience. Supporting grassroots venues must be a key part of the government’s industrial strategy for music,” adds Dugher, urging the chancellor to rethink his policy.
UK Music welcomes the chancellor’s announcement that a £700 million package will be rolled out from next month to help small and medium-sized enterprises invest in apprenticeships
The umbrella organisation also welcomes new investment in cities and city regions, following UK Music’s work with city region mayors to support the night-time economy across the UK.
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Senior politicians from across the main British political parties have shown support for a call by UK Music to make grassroots music venues eligible for business rates rebates, following a meeting with the chancellor of the exchequer, Philip Hammond.
Michael Dugher, chief executive of umbrella organisation UK Music, and Labour’s shadow culture minister Kevin Brennan met chancellor Hammond for urgent talks after some venues were hit by business rates rises of over 800%.
Brennan had raised the industry’s concerns regarding business rates to the chancellor in the House of Commons. At the meeting, Dugher presented a dossier outlining the impact of the 4% rise in business rates – the tax levied on non-residential property in the UK – on live music venues.
The rise has seen some venues, such as the Macbeth (300-cap.) in east London, experience a tax increase of £20,496 – a rate hike of 806%. The Music Venue Trust (MVT) warns that 35% of music venues have closed in a decade and the business rate hike could force many more to shut down within months without a government rethink.
The meeting concerned a call from music organisations to make music venues eligible for the retail discount on business rates, which applies to shops, restaurants and drinking establishments.
“In last year’s UK Live Music Census, 33% of small music venues reported that business rates increases had an ‘extreme, strong or moderate’ impact on their existence in the past 12 months,” says Brennan. “The chancellor must recognise the importance of these venues and extend the rates discount given to pubs to protect their future.”
“If the UK wants to retain its preeminent position as being a world leader in music, our industry needs the strategic support of government”
In December, Her Majesty’s Treasury announced that music venues would not be eligible for the rebate. Following the announcement, Dugher and MVT chief executive, Mark Davyd, co-wrote a letter to the chancellor describing government policy on rates as “discriminatory towards grassroots music venues.”
Dugher requested the chancellor add the 124 grassroots music venues within the qualifying value of between £12,001 and £50,999 to the retail discount scheme, reducing the venues’ business rate bills by one-third.
UK Music says this would be a lifeline for small venues and play a vital part in nurturing the talent pipeline vital to the chances of creating the next big British talent.
“I’m pleased that the chancellor listened to what we had to say about why we need a specific targeted change on business rates to safeguard the future of so many of our cherished grassroots venues,” comments Dugher.
“If the UK wants to retain its preeminent position as being a world leader in music, our industry needs the strategic support of government.”
Politicians including former culture minister and Conservative MP Ed Vaizey, Liberal Democrat digital, culture, media and sport spokesperson Baroness Jane Bonham-Carter and conservative MP Sir Greg Knight have lent their support to UK Music’s request.
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