A report by the Commons Digital, Culture, Media and Sports Committee – a cross-party committee of MPs – has raised concerns about the future of the UK festival industry if no government action is taken. The festival sector brings £1.7 billion to the economy each year in addition to supporting 85,000 jobs. A report completed by the DCMS that consulted artists, organisers, and industry leaders recommended that the government commit to a short-term insurance scheme to protect festivals against pandemic-related losses – the government has chosen not to back the scheme.
A fund of £1 billion was set up last summer to support arts and heritage in the aftermath of the pandemic. £830 million had been allocated in grants to arts institutions and venues, but only half of that was paid out as of March this year. Festival organisers have received £34 million from the Culture Recovery Fund, but with over a quarter of high-capacity 2021 festivals (including Glastonbury) already cancelled due to uncertainty, the committee argues the sector needs more help to recover.
The lack of insurance against problems caused by the ongoing covid-19 pandemic has been cited as a direct reason for some events cancelling or rescheduling. Such an insurance program would enable organisers to continue organising events without the risk of losing money to non-refundable costs as a result of covid-19 based cancellation. The film and television industries have enjoyed a comprehensive insurance programme on this basis, rolled out earlier in the pandemic, which is what allowed them to resume filming and creating.
Although the ‘exit roadmap’ for the relaxing of restrictions is going to plan so far, many organisers are choosing not to take the significant financial risk of running their festivals this summer due to the lack of a financial safety net.
In the report, Chairman of the Committee Julian Knight says;
Long-term effects of a second summer of cancellations the indefinite closure of many small festivals, and an uptick in independent festivals being bought by large companies to remain viable, resulting in a loss of diversity and most likely an increase in ticket prices.
