Newly appointed prime minister Liz Truss and the government are being called to address the impending energy crisis that is currently affecting the UK. The energy crisis also directly affects the music industry massively. Music companies are publicly being vocal about needing more support for the arts and music sectors, so the music industry can be protected.
Music industry organisations such as Music Venue Trust, Night Time Industries Association, UK Music and LIVE have emphasized the urgent need for new measures to be put in place, to save the arts and entertainment industry amidst the energy crisis. As the newly elected prime minister Liz Truss was appointed, along her list of challenges she plans to tackle, she stated that she planned to call for a reinstatement of VAT cuts for events and hospitality that were in place during the COVID pandemic.
Chief executive of UK Music Jamie Njoku-Goodwin congratulated Truss publicly on her victory before urging Truss to follow procedures the government had in place during the pandemic, which provided aid to the entertainment and hospitality industries. He stated “Congratulations to Liz Truss. During the campaign, Liz Truss rightfully talked about the need to tackle the crippling cost of living – and she must now deliver on that commitment immediately. Without urgent action to help venues, studios and other music businesses, there is a real risk that many will go to the wall”
Goodwin continued to suggest a solution to the impending crisis regarding the industry, which is that “the government should make a significant cut to VAT from its current 20% rate to 5%- just as it did during the pandemic”.
As energy costs rise and the cost of living increasing rapidly it comes as no surprise that music companies that narrowly survived COVID are fearful they will not be as lucky during this crisis. The impending fear clouds over the industry as they dread of permanent closures to venues, clubs and recording venues within the next few months.
Music organisation LIVE is also joining in demanding action to be made, suggesting reintroducing the HMRC Time to Pay scheme as well as regulations to be put in place to help minimise energy usage.
CEO of NTIA Michael Kill is also calling on the government to act, as well as suggesting that Truss takes responsibility for the energy crisis. By putting energy caps for businesses that will be affected highly by rising fuel costs this will lessen the impact. Kill emphasises “It is now vital that the new prime minister takes this opportunity to be decisive in tackling the cost inflation crisis, over the coming days, by reducing VAT across the board, extending business rates relief and implementing an energy cap for small medium enterprise businesses”
This statement was also supported by Music Venue Trust’s Mark Dayvd who stated he had personally witnessed a grassroots music venue’s energy bill increase by £134,000.
Goodwin expressed with urgency that “Without urgent support, there is a real chance that the billions keeping businesses and venues afloat during the pandemic will be wasted and that would be a tragedy.“
