A new levy on arena and stadium tickets and a cut in VAT are urgently needed to support grassroots music venues across the country as they struggle to cope with a crisis of closures and soaring costs, says a Westminster committee.
The recommendations are in a report from the cross-party Culture, Media and Sport Committee, which highlights how small local venues integral to the pipeline of professional creative and technical music talent are stopping performances or closing entirely at a rate of two per week.
The Committee also heard about how artists are facing a “cost of touring crisis”, while promoters are struggling to get shows off their spreadsheets and into venues.
On top of immediate financial help through a levy-funded support fund and a targeted temporary VAT cut to help stem the tide of closures, the report says a comprehensive fan-led review of live and electronic music should be set up this summer to examine the long-term challenges to the wider live music ecosystem.
The Committee inquiry, launched at the Music Venue Trust’s Venues Day in October 2023, heard from across the sector1 of the scale of the crisis facing venues and the impact this is having on artists and all those that rely on them for business.
The MVT described 2023 as the most challenging year for the sector since the trust was founded in 2014, while Creative UK said the grassroots music sector took a ‘battering’.
In total the number of GMVs declined from 960 to 835 last year, a net decrease of 13%, representing a loss of as many as 30,000 shows and 4,000 jobs.
The report says that given the urgency of the crisis, a voluntary levy on arena and stadium concert tickets would be the most feasible way to have an immediate impact, creating a support fund for venues, artists and promoters administered by a trust led by a sector umbrella body.
The Committee also calls for the industry to ensure the levy cost is not passed on to music fans. If there is no agreement by September or if it fails to collect enough income to support the sector, the Government should step in an introduce a statutory levy, the report adds.
On VAT relief, the Committee calls for a temporary cut based on venue capacity, with the Government undertaking analysis to assess the impact to inform future decisions.
Dame Caroline Dinenage MP, Chair of the Culture, Media and Sport Committee, said: “We are grateful to the many dedicated local venues who gave up their time to take part in our inquiry. They delivered the message loud and clear that grassroots music venues are in crisis.
“The ongoing wave of closures is not just a disaster for music, performers and supporters in local communities up and down the country, but also puts at risk the entire live music ecosystem. If the grassroots, where musicians, technicians, tour managers and promoters hone their craft, are allowed to wither and die, the UK’s position as a music powerhouse faces a bleak future.
“To stem the overwhelming ongoing tide of closures, we urgently need a levy on arena and stadium concert tickets to fund financial support for the sector, alongside a VAT cut to help get more shows into venues.
“While the current focus is on the many grassroots music venues falling silent, those working in the live music sector across the board are also under extraordinary strain. It is time that the Government brought together everyone with a stake in the industry’s success, including music fans, to address the long-term challenges and ensure live music can thrive into the future.”
Among the report’s other recommendations are for the Government and Arts Council to make it easier for the live music sector to apply for public funding and for stakeholders across the industry to continue to support the Featured Artists’ Coalition’s campaign to end punitive fees on artists’ merchandise.
QUARTER OF MUSIC AND THEATRE VENUES CONCERNED ABOUT CLOSURE
A quarter of music venues (27%) are concerned they may need to close down[1], as more than a third (35%) of business expenses go towards energy bills[2]
Many are running at half capacity (50%)[3], and have resorted to production cost cutting (17%)[4] and raising ticket prices by up to 25%[5]
Two in five (39%) have also found that customers are purchasing less expensive seats and buying fewer refreshments[6]
Three in five (60%) music venues say that energy bills are their top concern for the next year, above inflation rates and staff costs[7]
Uswitch for Business energy expert, Jack Arthur advises businesses to check the contract they are on and to review energy usage across all organisational levels.
Energy bills are taking the centre stage of concern for live performance venues, as energy bills make up more than a third of overall business costs, according to Uswitch for Business, the business energy comparison and switching service.
Performance venues are widely recognised as energy-intensive spaces, and the new research of UK music venues, concert halls and theatres shows over a quarter (27%) are concerned about potential closure due to rising costs.[1]
Air conditioning, heating, as well as extensive sound and lighting systems required to create immersive experiences for audiences are all adding towards total energy expenditure costs, with venues needing between 6 -1,000 kw to power low level concerts to major artist events[8].
Venues of all sizes report running at half capacity (50%) on average[3]. More than one in four (26%) sold fewer tickets this year, compared to last year. [9]
Consumers attending live performances are also more inclined to choose less expensive seats (39%) or buy fewer refreshments (39%)[6].
The show must go on: responding to the high energy costs
One in six (15%) venues report having to increase ticket prices[4], at an average of 25% per ticket to cover increased expenditure[5]. In addition, more than a quarter (27%) have also increased the prices of refreshments.[4]
Venues are also looking at new ways to reduce their energy output to directly tackle the problem. Training staff in energy efficiency measures (45%), switching to more energy efficient or LED lighting for both onstage and offstage (41%), and turning off, down or restricting air conditioning and heating (36%) are just some of the tactics. [4]
Nearly one in five (19%) are also choosing to only open their doors during peak times of the week, and 17% are using less energy intensive movable staging and production measures.[4]
But as energy prices continue to oscillate at high levels, three in five (60%) businesses are citing bills as their top concern for the next year, followed by inflation rates (41%) and staff costs (30%).[7]
Venues say they may have to make considerable changes if business costs were to increase further, especially as more than one in three (34%) state their business margins are now lower than before the cost of living crisis.[6]
Two in five (40%) fear they may have to make staff redundant to reduce costs, and one in three (35%) worry they may not be able to pay their energy bills on time.[1] Overall, 32% feel anxious about the future of the industry.[10]
Jack Arthur, energy expert at Uswitch for Business comments: “Live performances are central not only to the UK’s culture and entertainment sector, but also to the UK economy.
“While the sector has seen some recovery since the pandemic’s impact, the cost of energy has added new additional challenges.
“With higher utility costs taking the stage, venues need to be meticulous about how energy usage is being considered at all levels of their organisation – from the stage floor to sound production.
“Investing in more energy efficient appliances where possible may help to bring costs down, and prevent the final curtain for many.
“Music venues should also make sure they’re aware of their energy contract terms and end date, so they can shop around for the best rates at the time of renewal. Getting expert advice where needed and speaking to someone could help many businesses make significant savings.”
Elspeth McBain, Chief Executive of Lighthouse Poole Centre for Arts says: “Energy costs have been a major challenge to our venue, and indeed all venues in the last year, just as we were beginning to recover and get back on our feet following the devastating effect of the pandemic on culture and hospitality.
“In 2023 our electricity bill alone will increase by 200% and we are doing everything we can to meet this cost. However, this is on top of the significant increase in the cost of living which has increased our costs in all areas of the business and has also meant our audiences have less leisure spend available, restricting the number of times they can attend cultural events.
“Together, these factors have made it a testing time for organisations like ours and theatregoers alike. I am desperate for energy and living costs to come down so that we can keep bringing top class artists and productions to Poole, support local talent development, provide opportunities for cultural participation, and ensure that culture within our region continues to play a vital part in our community.”
Mark Davyd, CEO & Founder of the Music Venue Trust says: “We have seen an incredible explosion in energy prices right across the grassroots music venue sector in the last 12 months.
“The current situation is really on a knife edge, with venues essentially clinging on to the end of existing fixed term contracts and any new tariff effectively immediately creating a venue under threat of permanent closure.
“We desperately need some action from Ofcom and the Government to make the energy market work for music.”
The issue will be debated at the ‘Festival of Politics,’ which will be held in Edinburgh between Wednesday 9-11 August.
The panel, being held on the evening of the 11th, is entitled ‘Scotland’s Music Venues’ will examine why, despite Scotland’s worldwide reputation as a music nation, Grassroots Music Venues are under extraordinary financial pressures with many facing closure, and how politicians can step-up and help create security for these spaces.
Chaired by Michelle Thomson MSP, Convener, cross-party group on music, the panellists will include Scottish singer-songwriter Hamish Hawk, MVT COO Beverley Whitrick and major event professional Jim Frayling.
Unless otherwise stated, all figures taken from omnibus research carried out by onepoll on behalf of Uswitch for Business.
This was an online poll of 100 entertainment venue decision makers in the UK. The research was conducted between 6th and 9th June, 2023.
Respondents were asked ‘If costs of the business you work at were to increase to higher levels, which of the following do you believe could happen to the business?’, 40% said ‘it may have to make staff redundant’, 35% said ‘it might be unable to pay energy bills on time’, and 27% said ‘it may have to close down’.
Respondents were asked ‘Please estimate the proportion of your total business expenses that can be attributed to energy bills?’, the average response was 35.2%.
Respondents were asked ‘At what capacity (i.e., number of tickets sold) is the business you work at currently operating at for shows/performances?’, the average response was 50.4%.
Respondents were asked ‘What actions is your business taking to deal with high energy costs?’, 45% said ‘training all staff in energy efficiency measures’, 41% said ‘switching to more energy efficient / LED lighting (onstage or around the venue), 36% said ‘turning off, down or restricting air-conditioning or heating’, 27% said ‘increasing prices of refreshments at venue bars’, 19% said ‘opening the venue only during peak times of the week, 17% said ‘using less moving staging and production during shows, and 15% said ‘increasing prices of tickets’.
Respondents were asked ‘By what percentage have you had to raise overall prices?’, the average response was 25.1%.
Respondents were asked ‘What effects has the cost of living / rising energy prices had on your business?’, 39% said ‘customers are buying less refreshments’, 39% said ‘customers are choosing less expensive seats when buying tickets, 34% said ‘our business margins are smaller than previously’, 19% said ‘less of a demand for on the day tickets’.
Respondents were asked ‘What are your biggest concerns for your business in the next year?’, 60% said ‘energy bills’, 41% said ‘inflation rates’, 30% said ‘staff costs’, 27% said ‘customers reducing non-essential spending’.
Respondents were asked ‘Does your business currently have as many tickets sold compared to this time last year?’, 26% said ‘it has less tickets sold than this time last year’.
Respondents were asked ‘Which of the following statements do you agree with’, 36% said ‘my business was just starting to recover from the impact of the pandemic, and now energy costs are providing an even worse challenge’, 35% said ‘I am hopeful that the price of energy will drop in the next 3-6 months’, and 32% said ‘I feel anxious about the future of the industry’.
Two pioneering food brands have joined forces to shine a light on grassroots music venues, while celebrating a classic food combination of bagels and peanut butter.
This weekend, (Saturday 4th – Sunday 5th September), Bross Bagels will reveal the first in a range of limited-edition bagels, which will hero purpose-led brand Jackpot’s unique peanut butter, which ranges from their original to the more creative twists including raspberry, wasabi and cookies ‘n’ cream.
Bross Bagels will launch a new limited-edition bagel every weekend throughout September, with profits from the bagels going towards national charity, Music Venue Trust, which supports and endorses local UK music culture. The partnership will help raise funds and support for grassroots music venues at a time of need for music, culture, artists, their teams and crew.
With the aim of celebrating grassroots music venues across the country, each limited-edition peanut butter bagel will be inspired by music and performance and named after a famous song or lyrics.
The bagels will be available at the Portobello, Leith and Bruntsfield Bross Bagels shops across Edinburgh, every weekend throughout September.
The partnership aims to celebrate a classic food combination, while shining a light on grassroots music culture, a sector that has like many, been significantly impacted by the pandemic. The collaboration is a unique celebration of culture, music and independent venues, subjects close to the hearts of both brands.
Jackpot Peanut Butters will also be available to buy in all Bross Bagels shops throughout September, with a donation from the sale of each of the limited-edition bagels and Jackpot Peanut Butter pots going toward Music Venue Trust.
Launched in 2015, Jackpot Peanut Butter is an all-natural, traditional American peanut butter made in the UK – not dissimilar to Bross Bagels, who present authentic Montreal style bagels, made in Edinburgh.
The limited-edition bagels will kick off tomorrow (Saturday 4th September) with the (I can’t get no) Satay-Faction – a sesame seed Bross bagel filled with hot smoked salmon, Jackpot Peanut Butter, Bross’ infamous frickles, shrettuce, fresh chilli, coriander, and Mama Bross’ rock sauce.
Since the brand launched in 2017, Bross Bagels has been committed to working with other independent brands who are equally dedicated to their craft, and traditional production methods, while giving them a modern twist.
Commenting on the latest collaboration, Bross Bagels founder Larah Bross said; “We’re always looking for ways to work with other brands who have a similar commitment to their craft that we do. When we came across Jackpot Peanut Butter, we felt there was a real synergy in our purpose, passions and love of good food and music that bring people together.
“Bross Bagels was founded on the joy of sharing foods that conjure up memories. For me growing up, there was nothing that couldn’t be fixed with a bagel – especially a peanut butter and jelly bagel! We all have our comfort foods – and they’re comforting because food connects us to one another.
“Music conjures up the same sense of memory, belonging and connection, which is why we’re proud to be supporting both Jackpot and the Music Venue Trust. And we had a hole lot of fun creating the new bagel recipes and names!”
Rupert Leigh, Creator and MD of Jackpot Peanut Butter said; “Bagels and Peanut Butter is a winning combination, as are music and food. Never has there been a more important time to support grassroots music venues, and we’re thrilled to be able to work in collaboration with Larah and the Bross Bagels team to continue to support and nurture the culture of music.
“The sale of the bagels and Jackpot peanut butter pots will be donated to the Music Venue Trust, helping to support that next generation of music makers and fans – helping them grow and continue to entertain, and will highlight the need to look after and invest in our music culture.”
