The Music Venue Trust (MVT) warns that 2023 will be the worst year for venue closures since the organisation was created after the government declined to intervene on energy costs for the sector.

Chancellor Jeremy Hunt announced further support for theatres, museums, art galleries and orchestras in today’s Spring Budget, but the measures did not extend to grassroots music venues (GMVs).

“Already in 2023 one GMV is closing every week,” says MVT chief Mark Davyd. “The budget was an opportunity to ensure that this number of closures did not explode from the 1 April when GMV’s will be hit by excessive and unaffordable energy bills. The Chancellor has failed to respond to the evidence we submitted. There is no additional support for music venues and the inevitable result will be mass closures of venues.”

The MVT had recently presented details to DCMS and HM Treasury of the impact that failing to extend the enhanced business energy relief scheme from 1 April would have on the industry. It previously reported that some venues were seeing their energy bills increase by an average of 300% –in some cases as much as 740% – adding tens of thousands of pounds to their running costs.

“Regrettably, the failure to act on energy bills must inevitably mean that 2023 will be the worst year for closures since the creation of MVT in 2014”

“Regrettably, the failure to act on energy bills must inevitably mean that 2023 will be the worst year for closures since the creation of MVT in 2014,” adds Davyd. “In the absence of any action to this challenge by the government we will once again be reaching out to the energy supply companies to try to avert closures.

“It is plainly in no one’s interest to allow buildings that house GMVs to become abandoned as the cost of energy needed to open those spaces to the public and performers cannot be met by any venue operator.”

Davyd adds that the organisation remains keen to work with the government “to unlock the opportunity that the GMV sector presents”.

“We hope that in the near future a budget statement will be made that recognises and acknowledges the economic, cultural and community opportunity these venues present,” he says.

Elsewhere, the Musicians’ Union (MU) welcomed the announcement in the Budget that the rates of theatre and orchestra tax relief will be maintained at their current levels for a further two years from April.

The MU had lobbied for the higher rates of 45% and 50% respectively to be extended to help the sector to recover from the dual impacts of Covid-19 and the cost of living crisis.

“We are grateful that the government has listened to the MU and others in the creative sectors and extended the higher rate of tax relief for theatres and orchestras for another two years,” says MU general secretary Naomi Pohl.

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The German federal government has earmarked one billion euros to help cultural institutions and organisers with increased energy bills caused by the war in Ukraine.

The Culture Energy Fund (Kulturfonds Energie) will proportionately subsidise “additional energy costs” for eligible recipients between January 1 2023 (retrospectively) to April 30 2024.

Private and public cultural institutions will be invited to apply for aid, as well as cultural event organisers “if they hold ticket-financed cultural events in closed rooms that are not themselves eligible as cultural institutions”.

The fund is a “ray of hope for the cultural sector in the crisis”

The registration platform required for applications is projected to be available from mid-February, with the first tranche of aid totalling €375m.

“The energy crisis is threatening the existence of many cultural institutions and cultural event organisers,” says minister of state for culture Claudia Roth. “With the Kulturfonds Energie they can now get the support they urgently need to continue to provide such diverse and rich cultural offerings in our country.”

Olaf Zimmermann, managing director of the German cultural council, called the fund a “ray of hope for the cultural sector in the crisis”, which also shows “how important it is for the various actors, federal, state and civil society, to work together in the cultural sector”.

The fund has been under negotiation since the autumn and was finally approved on Wednesday (25 January).

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Live music organisations have reacted with disappointment to details of the UK government’s new Energy Bills Discount Scheme (EBDS).

Chancellor Jeremy Hunt unveiled the scaled-back initiative, which will replace the existing Energy Bill Relief Scheme from 1 April and will run for 12 months, earlier this week.

Sky News reports the EBDS will cost taxpayers £12.5 billion less and will reduce rather than cap energy cost. Businesses will only able to benefit from the scheme when bills reach £302 and £107 per MWh for electricity and gas, respectively.

Previously, wholesale prices were fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas for six months between 1 October and 31 March 2023.

“The government has been clear that such levels of support were time-limited and intended as a bridge to allow businesses to adapt,” says a statement from HM Treasury. “The latest data shows wholesale gas prices have now fallen to levels just before Putin’s invasion of Ukraine and have almost halved since the current scheme was announced.

“The new scheme therefore strikes a balance between supporting businesses over the next 12 months and limiting taxpayer’s exposure to volatile energy markets.”

“The average energy bill for live music venues has gone up by nearly 300% which is leading to permanent venue closures as owners struggle to cover costs”

However, Jon Collins, CEO of trade body LIVE, says the latest measures have increased the level of uncertainty for venue operators.

“The average energy bill for live music venues has gone up by nearly 300% which is leading to permanent venue closures as owners struggle to cover costs,” he says. “This decision further jeopardises these well-loved establishments – restricting access to live music, inhibiting venues’ ability to turn a profit, and damaging town and city centres at a time when we desperately need growth.”

Mark Davyd, CEO of grassroots venues organisation Music Venue Trust, describes the latest measures as “bizarre” and is calling for further clarification from the chancellor.

“The challenges caused by energy bills to grassroots music venues is understood by Jeremy Hunt and the government to be so bad that he has been compelled to write to Ofgem asking that they take action and do something about it,” says Davyd. “That’s good – something does need to be done, because the charges and conditions being forced upon the sector are absurd. The average increase in the sector is 278%. Demands are being made for excessive deposits, suppliers don’t actually want to supply and frankly, there is no market. There is simply an expensive monopoly with extraordinary prices and conditions.

“However, apparently the same evidence that has caused Jeremy Hunt to send the letter to Ofgem laying out these issues was considered insufficient that it would cause him to include Grassroots Music Venues within the specific support he subsequently announced. Venues, alongside the whole of hospitality, have been dumped into a general category of support that is so insufficient that it must inevitably result in permanent closures of venues.

“We are therefore forced to conclude that whilst Jeremy Hunt fully accepts that these energy bills will close music venues, he is not prepared to do anything concrete about it… except send letters”

“We are therefore forced to conclude that whilst Jeremy Hunt fully accepts that these energy bills will close music venues, he is not prepared to do anything concrete about it… except send letters.”

He continues: “The package of supported industries includes libraries and museums, who have neither comparatively high energy bills nor a non-functioning energy market and the basis on which he seems to have made the decisions on what would and would not be included in a package of support from 1 April are, at best, highly unusual.

“Mr Hunt has told Ofgem he would like to see the results of the investigation he has asked for in time for the budget. We would strongly urge them to complete that work with sufficient expediency that the chancellor can revisit the support in that budget and recognise that grassroots music venues should have been included within the exceptional support he has offered to libraries and museums.”

Elsewhere, Night-Time Industries Association chief Michael Kill says the announcement highlights that the government is “out of touch” with businesses.

“The scaling back of the energy relief scheme by government at the end of April will without doubt mean thousands of businesses and jobs will be lost in the coming months,” he adds.

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Germany’s federal government has announced plans to repurpose the remainder of its €2.5 billion event cancellation fund to help cultural institutions weather the energy crisis.

The decision comes after a government hearing last Wednesday (12 October), in which the country’s live music association BDKV said the industry would not survive the crisis without further financial aid.

Claudia Roth, minister of state for culture, says there is at least €1bn left over from the cancellation fund, which was designed to allow event organisers to plan events without the financial risk posed by a potential Covid outbreak.

Details on how the fund will now be distributed are yet to be announced but Roth says the energy aid should take effect from 1 January 2023, “retrospectively to October”.

In return for the energy fund, the minister expects “that the cultural institutions act in solidarity and do everything they can to save energy”. According to Roth, the target for federally funded facilities is 20% energy savings, which she believes a lot of venues are achieving already.

“We cannot afford it, and we do not want to afford it, for cultural institutions to be closed”

However, BDKV president Jens Michow says it is a major problem for the industry that from 2023 there would no longer be any cover for event cancellations caused by the pandemic.

“[The €2.5 billion government-backed insurance pot] is expected to have remaining funds of €1.5–1.8 billion by the end of the year. We demand that all remaining funds from 2022 remain unrestricted in the economic sector for which they were originally made available,” he said.

Speaking to concerns about fresh Covid restrictions this autumn and winter, Roth said she doesn’t want cultural institutions to have to close. “We cannot afford it, and we do not want to afford it, for cultural institutions to be closed, as was the case in the first two years of the pandemic, because then our democracy will no longer have a voice.”

Last month, IQ heard from a number of European arenas who also said that skyrocketing energy costs are emerging as the sector’s biggest challenge since the Covid-19 pandemic.

AEG-owned Barclays Arena (formerly the Barclaycard Arena) in Hamburg, Germany, was among the venues that reported a “huge” increase in energy costs.

The UK government was the first to address the crisis with its Energy Bill Relief Scheme, which will see energy bills for UK businesses cut by around half of their expected level this winter.

The news followed the revelation that some UK live music venues are seeing their energy bills increase by an average of 300% –in some cases as much as 740% – adding tens of thousands of pounds to their running costs.

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Germany’s live industry says it will not be able to cope with new challenges such as skyrocketing energy prices if the government does not provide further financial aid.

Jens Michow, president of the Federal Association of the Concert and Event Industry (BDKV), was invited to a government hearing, held on Wednesday (12 October), to discuss the consequences of the energy crisis on the cultural sector.

He told the committee for culture and media that the crisis is presenting the industry with another existential threat and that it has not been able to properly restart after the Covid-19 pandemic.

Among other things, Michow called for the existing Neustart Kultur II (Restart Culture 2) fund to be continued at least until the end of 2023 and for the organisers to be relieved of the burden of absorbing increases in energy costs at the venues.

In addition, he urged the government to create a fund for cultural events that can be used if events are no longer economical due to excessively increased energy costs, and also to strengthen the energy self-sufficiency of venues.

“We demand that all remaining funds from 2022 remain unrestricted in the economic sector”

Michow also told the committee that it was a major problem for the industry that from 2023 there would no longer be any cover for event cancellations caused by the pandemic.

“[The €2.5 billion government-backed insurance pot] is expected to have remaining funds of €1.5–1.8 billion by the end of the year. We demand that all remaining funds from 2022 remain unrestricted in the economic sector for which they were originally made available,” he said.

Last month, IQ heard from a number of European arenas who also said that skyrocketing energy costs are emerging as the sector’s biggest challenge since the Covid-19 pandemic.

AEG-owned Barclays Arena (formerly the Barclaycard Arena) in Hamburg, Germany, was among the venues that reported a “huge” increase in energy costs.

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UK live music trade bodies have expressed disappointment over chancellor Kwasi Kwarteng’s mini-budget.

Measures outlined by Kwarteng in the House of Commons today in a bid to boost growth included a 1p cut to the basic rate of income tax from April 2023, along with the abolition of the 45p tax rate for top earners over £150,000, while a planned rise on corporation tax from 19% to 25% has been scrapped and a 1.25% rise in National Insurance to be reversed.

But LIVE CEO Jon Collins, who wrote an open letter to the chancellor earlier this week calling for a reduction in VAT and business rates, says the announcement does little to help the live sector.

“Today’s announcement delivers little for the UK’s world leading live music industry”

“While we are pleased to see the government taking steps to alleviate the cost-of-living crisis, today’s announcement delivers little for the UK’s world leading live music industry,” he says. “Jobs are already on a knife edge, and we agree with the chancellor that there are too many barriers in sectors like ours where the UK leads the world. Combined with the impact of reduced public spending power and rising costs across the supply chain, businesses that are already struggling to turn a profit will face bankruptcy and closure.

“Only the emergency measures that we have suggested to government will prevent this – injecting cash into the bottom line of struggling businesses through a reduction in VAT on ticket sales, as well as major reform of business rates.”

Association of Independent Festivals (AIF) CEO Paul Reed adds his voice to the chorus of disapproval.

“Today’s announcement from the chancellor means very little for our £1.76bn UK festival industry,” he says. “We’ve faced unprecedented challenges on increased costs, supply chain and low consumer confidence, with audiences facing a social emergency. This shows no sign of relenting as we look to 2023.

“What we need is an urgent reduction of VAT on tickets to 5%, and an assurance that festival businesses will be classed as vulnerable and eligible for support with the energy crisis beyond March 2023.”

Night-Time Industries Association (NTIA) chief Michael Kill also shares his frustration at the mini-budget, which he says has left the night time economy in the cold.

“I would urge the chancellor and government to reconsider these measures, given the limited impacts of the current tax cuts on the immediate crisis for many businesses across the sector”

“We are extremely disappointed with the chancellor’s announcement this morning,” he says. “It will be seen as a missed opportunity to support businesses that have been hardest hit during this crisis, causing considerable anxiety, anger and frustration across the sector as once again they feel that many will have been left out in the cold.”

Earlier this week, the government revealed its Energy Bill Relief Scheme, which will see energy bills for UK businesses cut by around half of their expected level this winter. The news followed the revelation that some UK live music venues are seeing their energy bills increase by an average of 300% –in some cases as much as 740% – adding tens of thousands of pounds to their running costs.

Under the scheme, wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas for six months between 1 October and 31 March 2023. Kwarteng says the subsidising of both domestic and business energy bills will cost £60 billion for the next six months.

But Kill stresses that the intervention is “unlikely to be enough to ensure businesses have the financial headroom to survive the winter”.

“I would urge the chancellor and government to reconsider these measures, given the limited impacts of the current tax cuts on the immediate crisis for many businesses across the sector, the extremely vulnerable position the night time economy and hospitality sectors remain in, and re-evaluate the inclusion of general business rates relief and the reduction of VAT within these measures,” he says.

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To the Chancellor of the Exchequer Kwasi Kwarteng MP,

Following two hugely disrupted years of closures, cancellations and government restrictions, live music is once again bringing joy to communities across the UK.

This summer saw one of the biggest weekends of live music in the country’s history with an estimated one million fans flocking to world-famous festivals, classical concerts and grassroots gigs over the space of 48 hours.

The UK is world-leading when it comes to live music, its creation and delivery. But our industry is facing unprecedented challenges.

Sky-rocketing operating costs combined with energy bill increases of up to 1,700% and pressure on disposable income are closing the doors on live music spaces at an alarming rate. Gigs, festivals and tours are being postponed while, according to the Music Venue Trust, at least 300 grassroots venues risk permanent closure.

The energy crisis is just the latest in a range of impacts on our vibrant sector

These domestic pressures come at a time when live music touring is proving both costly and complex, which is especially harmful to artists who are at the start of their careers. In 2019, UK music exports were valued at £2.9bn with UK artists headlining four of the top ten grossing tours. Unfortunately, the costs and complexity of touring post-Brexit put this at risk.

And this does not just affect our venues and events. Every lost gig, festival or venue jeopardises a highly specialised supply chain, puts skilled jobs at risk and leaves our talented artists without opportunities to profit from their creativity. We cannot afford to lose our live music sector, which generates an estimated £4.5 billion every year for the UK economy and whose talented artists and crews are the envy of the world.

While today’s energy announcement goes some way to alleviate that risk, as soon as this support is removed, we will again face the threat of widespread closure. The energy crisis is just the latest in a range of impacts on our vibrant sector.

We need your help.

With our industry still hurting from the aftereffects of Covid and rising costs across the supply chain, we continue to make the case that our sector needs additional support from government – if we are to keep all concert halls, arenas, festivals, and grassroots music venues open, we need movement on VAT and business rates.

If we are to keep all venues open, we need movement on VAT and business rates

An emergency reintroduction of the 5% VAT rate on live music ticket sales would keep people employed, venues and festivals open, and money flowing back into local economies as fans flock to gigs.

Based on 2021 figures, the reintroduction of 5% VAT on tickets sales would cost just £150 million in the first year. Funds used by industry to expand the event roster and mitigate cost pressures on ticket prices. This additional activity would generate a further £12om spend at venues – safeguarding thousands of jobs, keeping hundreds of venues open, generating incremental tax revenues and getting millions of pounds flowing into local economies. It would also build on other sectoral interventions such as Theatre Tax Relief and Orchestra Tax Relief, which are helping the sector bounce back post-pandemic.

Running this intervention for just three short years would mitigate some of the huge overhanging pressures the industry faces post-Brexit and Covid, while making live music events more accessible at a time when the country needs it most.

It’s over to you to ensure the UK’s live music sector has a vibrant future, helping us all to reap the cultural, economic, and social value music brings to the country – and to the world at large.

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European live music trade bodies are lobbying for government-backed support packages to mitigate rocketing energy bills and prevent the sector from collapsing.

Last month, IQ heard from a number of European arenas who say that skyrocketing energy costs are emerging as the sector’s biggest challenge since the Covid-19 pandemic. ASM Global’s Marie Lindqvist said the prices for electricity and gas at the company’s venues have quadrupled since the beginning of the year, with the UK being hit the hardest.

UK live music trade bodies today (21 September) welcomed the government’s Energy Bill Relief Scheme for businesses but have called for further clarification of the details.

The scheme, revealed by the Department for Business, Energy and Industry, will see energy bills for UK businesses cut by around half of their expected level this winter.

The news comes after it was revealed that some UK live music venues are seeing their energy bills increase by an average of 300% –in some cases as much as 740% – adding tens of thousands of pounds to their running costs.

Under the new scheme, wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas for six months between 1 October and 31 March 2023.

The support is equivalent to the Energy Price Guarantee put in place for households and applies to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts.

UK live music trade bodies today welcomed the government’s Energy Bill Relief Scheme for businesses

This scheme will apply to England, Scotland, and Wales, with a parallel scheme will be established in Northern Ireland, and will be reviewed after three months with an option to extend support for “vulnerable businesses”. However, it is not yet clear whether the live music sector falls into this category.

LIVE CEO Jon Collins welcomes the support but says the government must sustain it past the next six months. “Spiralling energy prices have already forced music venues up and down the country to close or curtail their programming and this will begin again as soon as this support is removed – it is plainly obvious that live music must be on the list of sectors considered ‘vulnerable’ by government.

“With our industry still hurting from the aftereffects of Covid and rising costs across the supply chain, we continue to make the case that our sector needs action on VAT and business rates if we are to keep all concert halls, arenas, festivals, and grassroots music venues open, bringing joy to millions and showcasing the best UK and international talent.”

Music Venue Trust (MVT) CEO and founder Mark Davyd has also warmly welcomed the package, saying the scheme “appears at face value to comprehensively tackle the immediate short-term energy crisis for grassroots music venues”.

“We await full details of the scheme and the method of implementation by the energy retailers and suppliers, but the base unit rate of 21.1p per kW/h laid out by these plans is sufficient to avert the collapse of the sector if it is fully delivered,” says Davyd.

“We understand that the government plans to bring forward controls to ensure that this target price is delivered and we look forward to reading their plans to implement this rate as a maximum for all music venues in the UK.”

The scheme “appears at face value to comprehensively tackle the immediate short-term energy crisis for GMVs”

However, MVT is also urging the government to clarify which sectors fall into the “vulnerable businesses” category: “The government has indicated that ‘pubs’ will attract support for longer than the six-month initial period based on the special circumstances of the energy crisis in relation to the operation of their business.

“We have asked for urgent clarification that the broad term ‘pub’ includes music venues and other licensed premises essential to the grassroots music ecosystem, and anticipate that this will be the case.”

The trade bodies have pointed out that further support is needed, in addition to the scheme, in order to stabilise the sector after the Covid-19 pandemic. The sector is calling on the Chancellor to reduce VAT on ticket sales to 5% and reform business rates in the mini-budget expected this Friday (23 September).

Elsewhere in Europe, markets including the Netherlands and Germany are still lobbying for critical support to curb “disastrous” energy costs for live music businesses.

In the Netherlands, the Association of Theatre and Concert Hall Directors (VSCD) says a large proportion of its 151 members are in danger of getting into financial trouble due to rising energy costs and inflation.

“For many venues, the rise in energy costs is disastrous. The expectation for next year is that we will be seven times more expensive. Even if we sell out every performance, this cost increase is impossible to absorb,” says Mirjam Radstake, director of Theater Hanzehof and Buitensociëteit in Zutphen.

VSCD is calling on the Dutch government to help local authorities subsidise venues’ energy bills

With only 7% of its members receiving some form of compensation to cover the costs, VSCD is calling on the Dutch government to make an extra contribution to the municipal fund so that local authorities can subsidise venues’ energy bills.

The association argues that, currently, subsidies do not reflect venues’ rising costs, which also include a 9.7% rise in rent and a 10% increase in the minimum wage, and that passing these costs onto the public is not an option.

“If we increase the ticket price, the public will drop out,” says Charles Droste, director of Cultuurbedrijf Amphion in Doetinchem.

“At the moment, 25% fewer tickets have been sold with us in September than in September 2019. The public seems to be waiting for rising energy costs and inflation.”

Earlier this week, the Taskforce Creative Culture and Media also sent a letter to the cabinet, containing a general plea to protect the sector against the current inflation and increased energy costs.

Meanwhile, Germany’s live association, the Federal Association of the Concert and Event Industry (BDKV), is calling on the federal government to design a special relief programme for the events industry to put forward to the EU Commission.

Germany’s live association is calling on the federal government to design a special relief programme for the events industry

Earlier this year, the EU Commission adopted a Temporary Crisis Framework which enabled member states to be more flexible with State aid rules in order to support the economy during Russia’s invasion of Ukraine.

Under the framework, member states could grant a limited amount of aid to companies affected by the crisis, or by the subsequent sanctions and countersanctions, up to the increased amount of €62,000 and €75,000 in the agriculture and fisheries and aquaculture sectors respectively, and up to €500,000 in all other sectors.

However, in the plan, the EU Commission does not count the events industry among the “systemically important” sectors eligible for aid. BDKV is now asking for a revision to the framework, to allow businesses in the events industry to receive up to €500,000.

“Without state support, there is a risk of the industry collapsing with bankruptcies, operational closures and further migration of skilled workers and the self-employed,” reads a statement from BDKV. “This special programme is needed now and not in the near future when such help is already too late.”

Timo Feuerbach, MD of the European Association of Event Centers (EVVC), says: “The events industry has not yet recovered from the corona-related restrictions of the past few years. The consequences of the war in Ukraine, high inflation and impending bottlenecks in the energy supply are also hitting us hard. Together with the disastrous communication from the federal government on the subject of Corona, which is unsettling customers and is already costing orders, our industry is in danger of being left behind in international competition.”

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UK live music trade bodies have warned the sector faces an “existential challenge” from the energy crisis after prime minister Liz Truss announced a temporary price cap for businesses.

The new PM unveiled an estimated £150 billion package today, which will see energy bills capped at £2,500 for households for next two years while the government gets the energy market “back on track”.

An equivalent price cap guarantee will be offered to all businesses, charities and public sector organisations for six months, after which a review will take place. Hospitality and other vulnerable sectors will be guaranteed additional support after the six-month period.

“We welcome the government’s energy announcement today and the measures outlined by the prime minister, but we urgently need more detail on how the government plans to support struggling businesses facing energy costs increasing by as much as 1,700%,” says LIVE CEO Jon Collins. “To support the live music industry, we also call on the government to introduce targeted action by reducing VAT on ticket sales to 5% and reforming business rates.”

“The triple threat of a cost-of-living crisis, the post-pandemic hangover, and skyrocketing energy prices could spell the end of the UK’s live music scene as we know it”

A recent industry survey revealed that music businesses across the country are currently facing enormous energy cost increases, forcing many to consider closing their doors and leading Collins to warn last week that the “triple threat of a cost-of-living crisis, the post-pandemic hangover, and skyrocketing energy prices could spell the end of the UK’s live music scene as we know it”.

“Millions of people have just enjoyed a spectacular summer of live music, but this is now under threat,” he said. “We face cuts to programming, venue closures and an unbearable strain on an already fragile industry. Government must act to protect this world-leading and uniquely British endeavour before it is too late.”

Responding to today’s intervention, Music Venue Trust venue support manager Clara Cullen stresses that a longer-term solution is required.

“The policy announced today only goes some way in alleviating the challenge”

“The financial impact of the energy price rises on the grassroots music venue sector presents an existential challenge,” she says. “For a sector with a total gross turnover of £399 million, the current rise equates to an additional £90m in costs.

“The policy announced today only goes some way in alleviating the challenge, in the very short-term, by creating an energy price cap for businesses that will be in place for an initial six months. The government has committed to reviewing this policy in conjunction with the hospitality sector. Music Venue Trust will contribute to this review to ensure the perspective of grassroots music venues is included in this decision-making process.

“As the policy announced today is only a temporary short-term measure, Music Venue Trust urges the government to take further action to ensure a long-term solution for energy provision for grassroots music venues providing an energy supply which is affordable, reliable and sustainable. We need this action to take place as soon as possible to protect, secure and improve our grassroots music venues.”

“This half measure package is tantamount to support experienced during the pandemic, but lacks considerable detail to alleviate current business concerns”

Michael Kill, CEO of the Night-Time Industries Association, believes the support package falls short of requirements.

“We are extremely disappointed at the announcement by the prime minister today,” he says. “This half measure package is tantamount to support experienced during the pandemic, but lacks considerable detail to alleviate current business concerns.”

“We have no time for drip fed support, or to await the impact assessment of incremental measures, this needs to be a concise and immediately accessible package, which is proportionate and scalable.

“As the first major announcement of the prime minister and chancellor’s tenure, the government has failed businesses today, and with mounting debt across the sector we will see many have no choice but to consider the future, placing thousands of jobs at risk in the coming weeks, without additional support.”

Last month, IQ heard from a number of European arenas who also say that skyrocketing energy costs are emerging as the sector’s biggest challenge since the Covid-19 pandemic. ASM Global’s Marie Lindqvist said the prices for electricity and gas at the company’s venues have quadrupled since the beginning of the year, with the UK being hit the hardest.

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Grassroots music venues are among the small and medium-sized businesses in the UK that are facing closure without immediate action to curb rocketing fuel bills.

With businesses excluded from the energy cap, some venues are seeing their energy bills increase by an average of 300% –in some cases as much as 740% – adding tens of thousands of pounds to their running costs.

Based on a survey of its 941 venue members, Music Venue Trust (MVT) revealed that venues face an average 316% rise in fuel bills, taking the average cost to £5,179 per month per venue, up from the current average of £1,245.

One venue has been quoted £42,000 a year for fuel – more than treble its previous bill of £13,200 – with the supplier saying they will only accept full payment in advance.

MVT is now warning that the surge in energy bills means that around 30% of the entire network of venues face the threat of permanent closure.

Around 30% of MVT’s entire network of venues face the threat of permanent closure

Pubs are also seeing energy costs soar by as much as 300%, with brewery bosses telling the BBC that the crisis would cause “real and serious irreversible” damage to the industry without support.

Both the hospitality and entertainment sectors are now urging the government to introduce a cap on the price of energy for businesses. The live music sector is also calling for VAT to be decreased from the current 20% to 12.5% and for business rates relief to be extended.

“Alongside the simply unaffordable increases to costs, the government must urgently address the fact that the market for energy supply has collapsed,” says Music Venue Trust CEO Mark Davyd.

“We have multiple examples where venues do not have any option other than to accept whatever price increases and tariffs are proposed by the sole supplier prepared to offer them power at all. The situation has rapidly deteriorated into a monopoly.”

“The new prime minister must ensure that music businesses are included in the support measures”

UK Music chief executive Jamie Njoku-Goodwin adds: “Spiralling energy costs have created an existential threat for venues and music studios. It’s urgent that government takes action to support businesses with the costs they are facing.

“We all saw just how miserable life was without live music during the pandemic, when venues were closed for months – the high cost of energy bills could now close them forever.

“The new prime minister must ensure that music businesses are included in the support measures that are brought forward to deal with soaring energy costs.

“The government should look at cutting VAT and extending business rate support to help music businesses that are fighting for their survival.”

Last week, IQ heard from a number of European arenas who also say that skyrocketing energy costs are emerging as the sector’s biggest challenge since the Covid-19 pandemic.

ASM Global’s Marie Lindqvist said the prices for electricity and gas at the company’s venues have quadrupled since the beginning of the year, with the UK being hit the hardest. Read the full story here.

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