Leading figures from across the live music industry have signed a letter imploring the government to maintain five percent VAT rate on admission sales for another three years, with the intention of supporting struggling music venues through the coronavirus pandemic.
The admission VAT rate was reduced in July 2020 as a measure to help preserve struggling venues, as they received lower footfall amid the discontent of the pandemic last year. However, the government outlined that this would only be a temporary reduction, and admission VAT is set to return to the original 20 percent rate on March 31st. Live sector officials are now pledging their support to the #KeepVATat5 campaign, urging chancellor Rishi Sunak to maintain the reduced VAT rate since prolonged closures have meant venues are yet to benefit from this scheme. According to LIVE (Live music Industry, Venues & Entertainment), the extension will save the music industry over £300 million each year.
Greg Parmley, CEO of LIVE, said: “The live music industry supports hundreds of thousands of skilled jobs across the UK and brings in billions of pounds for the UK economy. This policy was brought in to support our industry during these desperate times but currently we are still closed. Reversing this policy before we can start to sell tickets again would be perverse and cripple our recovery.”
Today, 34 trade associations representing the entirety of music and theatre in the UK, have written to @RishiSunak to ask him not to increase VAT by 400% at the moment the arts needs support the most #KeepVATat5. Pls get involved: https://t.co/cPlVsRVuJQ pic.twitter.com/SDcMR9VwLg
— LIVE (@LiveMusic_UK) February 4, 2021
Julian Knight MP, Chair of the Digital, Culture, Media and Sport Committee, has openly supported the campaign. “Pulling the plug on the reduced VAT rate for ticket sales now would be short-sighted,” he opined. “The DCMS Committee recommended in its July 2020 report that the 5 percent VAT rate should be kept for three years
“With live events still unable to operate, this is needed more than ever. I fully support LIVE’s campaign. Now is the time to extend support for our vibrant creative sector, which could be a cornerstone of our economic recovery from this crisis.”
As the UK remains under full lockdown restrictions, the fate of this year’s live music sector remains highly precarious. Many artists, including The 1975 and Alfie Templeman and Nick Cave & The Bad Seeds, have been compelled to cancel or reschedule live concert dates; Glastonbury Festival, meanwhile, announced cancellation for the second year in a row late last month. Mark Davyd, CEO of the Music Venue Trust, has outlined his own plea to Sunak via twitter: “Your government cut VAT on tickets to 5% last year. This was a sensible, budgeted, intelligently designed intervention that achieved the aim of providing maximum support to the music industry at the minimum cost and administration,” he said.
“Since announcing that year long VAT break, hardly a single ticket has been sold. The financial support offered hasn’t yet been used, and it is still badly needed for our industry to recover. Don’t take away that offer of support. Let the industry use it the way you always planned it would, to support our recovery and to invest back into the people and businesses who have lost so much in this crisis. “
