Budget slammed as a “missed opportunity” by UK live music industry

nme.com:

key demand – a cut in the VAT charged on tickets.In response, several representatives from various live music organisations have responded negatively to the proposed budget.Jon Collins, the CEO of Live (Live music Industry Venues & Entertainment), issued a statement expressing frustration on the lack of action in cutting VAT rates.He said: “Today’s Budget represents yet another missed opportunity to accelerate the growth of the live music sector and the wider economy while also providing urgently needed support for grassroots music through the reintroduction of a lower VAT rate.

20% VAT on tickets in the UK is vastly out of step with our competitors in Europe and North America and has become a material factor limiting the number of gigs, tours and festivals our world class industry can put on.”He continued: “Fewer shows mean reduced economic activity in towns and cities across the country – an estimated £1m is spent in local businesses for every 10,000 people who attend a gig – and heaps further pressure onto grassroots music venues that are closing down at an alarming rate.

We need urgent action to ensure the whole sector can prosper in the long term.”Meanwhile, John Rostron (CEO of the Association of Independent Festivals), called for the VAT reduction due to the impact of COVID and Brexit.

The AIF recently held its own Five Per Cent For Festivals campaign.Rostron said: “Festivals need a temporary reduction in VAT on ticket sales from 20% to 5% in order to recover from the impact of Covid and Brexit that has created a credit crunch that is seeing successful festivals having to postpone or cancel this year, months before their events are meant to take place.“Yet another festival fell yesterday – the 15th event to fall.