MVT lobbies for £1 ticket levy after Moles closure
The Music Venue Trust (MVT) is lobbying the government for a compulsory £1 levy on tickets sold for UK live music events above 5,000 capacity after grassroots venue Moles in Bath was forced to shut down with immediate effect.
Moles opened in 1978 and has hosted early gigs by acts such as Ed Sheeran, The Killers, Fatboy Slim, Oasis, Blur, Radiohead, The Smiths and Idles. But all future events have been cancelled at the storied 220-cap venue after its owners filed for insolvency, citing rising costs and the cost-of-living crisis.
“Making the decision to close Moles was horrendous, but the cost-of-living crisis has crippled us,” says co-owner Tom Maddicott. “Massively increased costs of stock, utilities and rent compounded by our customers also feeling the impact of the crisis has made it impossible to continue.
“It’s obviously an incredibly difficult decision to have to take, for our team, the staff, the local community, and the artists that over the years have created such an incredible history of music. But the reality is that live music at grassroots level is no longer economically viable and we will not be the only grassroots music venue forced to close.”
“Venues like these all over the country are going out of business, whilst helping nurture the artists that will go on to generate millions for the broader music industry”
According to the MVT, more than 120 grassroots venues (15%) have closed and a further 84 are currently in crisis, while at least seven new arenas are currently planned in cities across the UK.
“Today is a very sad day for our sector,” says Mark Davyd, CEO and founder of the MVT. “Grassroots Music Venues like Moles – one of the best loved and most efficiently run venues in the country for almost 45 years – have done everything they can to keep afloat, investing every penny they can into trying to fulfil their commitment to live music.
“Venues like these all over the country are going out of business, whilst helping nurture the artists that will go on to generate millions for the broader music industry. Put bluntly, they have been badly let down by those who profit from their efforts.”
The MVT has long campaigned for the wider live music industry to financially back the grassroots music sector, proposing that every ticket sold at an arena and stadium should make a £1 contribution into its Pipeline Investment Fund. But despite support from the likes of Enter Shikari, promoter Cuffe & Taylor, venues Piece Hall and Swansea Arena, and ticketing companies Ticketmaster, Skiddle and Good Show, Davyd says the business-at-large has been far too slow to react.
“There needs to be a major shake-up of the live industry with the big players supporting the grassroots where it all begins to secure that pipeline of talent”
“Unless it gets serious about its responsibilities to encourage, nurture and develop the grassroots live sector the music industry as a whole will face a catastrophic failure of artist development,” adds Davyd. “In France all major live music events are required to pay 3.5% of each ticket sale into a fund to support grassroots artists and venues.
“We have today written to the government and to opposition parties to insist that, in the event that the music industry will not act voluntarily, a compulsory levy on every ticket sold for every live music event above 5,000 capacity that takes place in the UK must be introduced by legislation to prevent the devastation of the sector.”
Maddicott adds to the calls for broader support, comparing the situation with other industries.
“There needs to be a major shake-up of the live industry with the big players supporting the grassroots where it all begins to secure that pipeline of talent,” he says. “Football gets it with the Premier League investing millions in the grassroots game each year to bring through new players. The music industry needs to do the same before the entire grassroots sector collapses.”
“It is inevitable that there will be more closures if urgent action is not taken”
Elsewhere in the UK, organisers of independent festival Nozstock The Hidden Valley have announced its 2024 edition, set for 18-21 July, will be its last.
“After the losses incurred over Covid, straight into a cost-of-living crisis, the financial risk is becoming too great,” says a statement from the festival, which has been running for 26 years.
Association of Independent Festivals CEO John Rostron says it is “inevitable” that more events will fold without swift intervention.
“It’s incredibly sad to see Nozstock The Hidden Valley forced to close its gates for good as a direct result of the financial strain faced by many following significant Covid losses and an ongoing cost-of-living crisis,” says Rostron. “After almost three decades of great events, Nozstock has become a key fixture on the UK’s independent festival calendar, and this should serve as yet another alarm bell warning of the perilous situation that many in this cultural sector are facing.
“Already, neither NASS Festival and Leopallooza will return in 2024; Bluedot is on a hiatus after a difficult 2023 edition, and the award-winning Field Maneuvers has announced its 2024 festival will be its last in its current form.
“The impact of Covid and high supply chain costs means the squeeze on festivals is increasing. It is inevitable that there will be more closures if urgent action is not taken. We again call on the government to review VAT on music festival ticket sales and lower the rate to 5% for an extended period to help support the recovery of the festival sector.”
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