Recommendations & Conclusions
16 items
1
Conclusion
Seventh Report - Grassroots music venues
Acknowledged
The crisis affecting grassroots music venues and the broader live music ecosystem, including artists, promoters and festivals, is of deep concern to music lovers, local communities and all those who depend on the sector’s economic and cultural success. We also recognise and share concerns that these issues are affecting the …
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The crisis affecting grassroots music venues and the broader live music ecosystem, including artists, promoters and festivals, is of deep concern to music lovers, local communities and all those who depend on the sector’s economic and cultural success. We also recognise and share concerns that these issues are affecting the broader night-time venues that host music, including clubs and electronic music spaces. These sectors must not be allowed to continue to decline, but the current support is insufficient to prevent this.
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Government response AI summary
The government welcomes the report, agrees that a sustainable grassroots sector is essential, and states it will work across government to champion the sector and create appropriate fiscal and regulatory conditions, also highlighting a 'community right to buy' through the English Devolution Bill.
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Department for Culture, Media and Sport
2
Recommendation
Seventh Report - Grassroots music venues
Rejected
While our work has focused on immediate solutions to support grassroots music, a comprehensive review of the live music ecosystem is needed to fully explore the long-term challenges and the interventions needed to protect it. We recommend that the Government launch a fan-led review of live and electronic music in …
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While our work has focused on immediate solutions to support grassroots music, a comprehensive review of the live music ecosystem is needed to fully explore the long-term challenges and the interventions needed to protect it. We recommend that the Government launch a fan-led review of live and electronic music in the summer of 2024, to bring together all parts of the ecosystem and report within the next twelve months. (Paragraph 23) A live music levy
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Government response AI summary
The government rejects the recommendation for a fan-led review of live and electronic music, citing existing work on the Industrial Strategy, ticketing consultations, and work across touring and streaming.
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Department for Culture, Media and Sport
3
Conclusion
Seventh Report - Grassroots music venues
Acknowledged
We are encouraged that stakeholders across the sector are taking a levy seriously and already coming together to propose solutions in good faith. While we agree with artists and managers that a compulsory levy on arena and stadium tickets would be the fairest and most sustainable mechanism to support grassroots …
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We are encouraged that stakeholders across the sector are taking a levy seriously and already coming together to propose solutions in good faith. While we agree with artists and managers that a compulsory levy on arena and stadium tickets would be the fairest and most sustainable mechanism to support grassroots music venues without requiring downward pressures on artists’ share of revenues, we accept that the urgency of the crisis in grassroots means that a voluntary levy is the most feasible way to have an immediate impact. If the live music sector is serious about creating an effective voluntary levy, it must be equitable for all stakeholders and in place as soon as possible.
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Government response AI summary
The government agrees with the committee's stance that an industry-led voluntary levy is the most feasible path forward, urging the live music sector to act quickly, and offers to use its convening powers to facilitate discussions while monitoring progress.
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Department for Culture, Media and Sport
4
Recommendation
Seventh Report - Grassroots music venues
Acknowledged
We recommend that the live music industry introduce a voluntary levy on arena and stadium tickets no later than September 2024 to support grassroots music venues, artists and promoters.
Government response AI summary
The government agrees with the recommendation for a voluntary industry levy and urges the live music sector to act swiftly, offering to use its convening powers and monitor progress.
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Department for Culture, Media and Sport
5
Recommendation
Seventh Report - Grassroots music venues
Accepted in Part
We further recommend that the Government should undertake and publish an assessment of the effectiveness of the voluntary levy on grassroots music venues no later than 12 months after its establishment.
Government response AI summary
The government states it will consider progress on the implementation and effectiveness of the voluntary levy and monitor international developments, reserving the right to take further action, but does not explicitly commit to publishing a formal assessment within 12 months.
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Department for Culture, Media and Sport
6
Recommendation
Seventh Report - Grassroots music venues
Deferred
If a voluntary levy is unable to be agreed by September 2024, or if the assessment of the voluntary levy concludes it is not collecting the income required to support the GMV sector, the Government should introduce a statutory levy at the earliest subsequent opportunity.
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If a voluntary levy is unable to be agreed by September 2024, or if the assessment of the voluntary levy concludes it is not collecting the income required to support the GMV sector, the Government should introduce a statutory levy at the earliest subsequent opportunity.
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Government response AI summary
The government agrees with the principle of a levy but supports a voluntary one, urging the industry to act. It states it will monitor the progress and effectiveness of a voluntary levy, reserving the right to consider a statutory levy if voluntary efforts fail.
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Department for Culture, Media and Sport
7
Recommendation
Seventh Report - Grassroots music venues
Acknowledged
There is broad consensus that a charitable organisation is best placed to administer the levy funds. While Arts Council England is already well-established and well- placed to distribute funding, we accept that a trust led by a sector umbrella body, such as the LIVE Trust or Music Venues Trust, is …
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There is broad consensus that a charitable organisation is best placed to administer the levy funds. While Arts Council England is already well-established and well- placed to distribute funding, we accept that a trust led by a sector umbrella body, such as the LIVE Trust or Music Venues Trust, is the best way to collect, manage and distribute a voluntary fund. For this to succeed, we recommend that it contains Grassroots music venues 37 broad representation for all stakeholders, including venues from GMVs to arenas, artists and their business partners and national and independent promoters among its trustees. A trust must provide the utmost transparency and due diligence for its decisions to ensure it can maintain the confidence of all stakeholders within the fragile live music ecosystem. (Paragraph 50) VAT and business rate relief
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Government response AI summary
The government agrees with the recommendation for a charitable organization to administer the levy, welcoming LIVE's efforts and encouraging broad stakeholder representation, transparency, and due diligence in its management.
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Department for Culture, Media and Sport
8
Recommendation
Seventh Report - Grassroots music venues
Rejected
A targeted and temporary cut to VAT for grassroots music venues on tickets would help to improve the immediate risk-profile of live music for promoters and in-house programmers, who take on the financial risk, and help get more shows into venues. The Government should introduce a temporary cut to VAT, …
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A targeted and temporary cut to VAT for grassroots music venues on tickets would help to improve the immediate risk-profile of live music for promoters and in-house programmers, who take on the financial risk, and help get more shows into venues. The Government should introduce a temporary cut to VAT, based on venue capacity, to stimulate grassroots music activity and the wider economic benefits to local areas that grassroots music shows provide.
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Government response AI summary
The government rejects the recommendation for a temporary VAT cut, citing economic and fiscal stability and the broad-based nature of VAT. It notes existing funding for the grassroots music sector.
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Department for Culture, Media and Sport
9
Recommendation
Seventh Report - Grassroots music venues
Rejected
We recognise that live music is one of many sectors calling for special treatment for VAT, and that the case for a long-term or permanent exemption requires a stronger evidence base for its economic impact than currently exists. We recommend that the Treasury and DCMS undertake a comprehensive economic analysis …
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We recognise that live music is one of many sectors calling for special treatment for VAT, and that the case for a long-term or permanent exemption requires a stronger evidence base for its economic impact than currently exists. We recommend that the Treasury and DCMS undertake a comprehensive economic analysis of the impact on a cut to VAT in line with recommendations made in this report, including modelling: a cut to a 10% rate, which is the European average, on tickets, as well as alternative approaches such as VAT on food and beverages; a targeted intervention for different sizes of venue; and the indirect impacts to VAT revenues of venue closures and a reduction in live and electronic music events.
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Government response AI summary
The government rejects the recommendation, stating it has no plans to introduce a temporary VAT cut or undertake a bespoke economic analysis of the impact of a VAT cut to 10% on tickets.
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Department for Culture, Media and Sport
10
Recommendation
Seventh Report - Grassroots music venues
Accepted
We welcome the Government’s decision to extend business rates relief for grassroots music venues until the end of the 24/25 billing year. However, while we understand that the conventions around Budget announcements are well-established, this continued uncertainty creates a new cliff-edge for the already precarious grassroots music sector. We recommend …
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We welcome the Government’s decision to extend business rates relief for grassroots music venues until the end of the 24/25 billing year. However, while we understand that the conventions around Budget announcements are well-established, this continued uncertainty creates a new cliff-edge for the already precarious grassroots music sector. We recommend that Government should ensure that any future fiscal policy decisions relating to grassroots music venues gives venues certainty and long- term security. If the Treasury intends to end business rates relief for GMVs, the reduction in relief should be tapered in order to avoid an immediate shock to the sector. (Paragraph 64) Public funding
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Government response AI summary
The government commits to providing fiscal certainty by introducing permanently lower tax rates for relevant properties from 2026-27, extending RHL relief at 40% for 2025-26, and freezing the small business multiplier for 2025-26.
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Department for Culture, Media and Sport
11
Recommendation
Seventh Report - Grassroots music venues
Acknowledged
We welcome the efforts by Arts Council England to address issues resulting from the live music sector’s ability to access public funding raised in our predecessor committee’s ‘Live music’ inquiry six years ago, and indeed grassroots music venues said that ACE funding through Covid had been a lifeline. However, we …
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We welcome the efforts by Arts Council England to address issues resulting from the live music sector’s ability to access public funding raised in our predecessor committee’s ‘Live music’ inquiry six years ago, and indeed grassroots music venues said that ACE funding through Covid had been a lifeline. However, we are concerned that perceptions and administrative burdens remain largely the same. We recommend that the Government and Arts Council work to reduce the administrative burden of applying for public funding. (Paragraph 75) Stakeholder disputes
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Government response AI summary
The government acknowledges the challenges and states it is working closely with Arts Council England to ensure the funding application process is accessible. It appreciates ACE's ongoing efforts and encourages continued improvement.
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Department for Culture, Media and Sport
12
Conclusion
Seventh Report - Grassroots music venues
Not Addressed
We recognise that, in the current economic context and amidst a closure crisis, there are frustrations among venue operators and promoters with PRS for Music’s 38 Grassroots music venues fees and processes regarding licensing. We also recognise that PRS for Music has a responsibility to the songwriters, composers and music …
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We recognise that, in the current economic context and amidst a closure crisis, there are frustrations among venue operators and promoters with PRS for Music’s 38 Grassroots music venues fees and processes regarding licensing. We also recognise that PRS for Music has a responsibility to the songwriters, composers and music publishers it represents, and is a vital part of the music ecosystem. Songwriter rights and royalties should be protected but tariffs should be fair and terms reasonable for licensees.
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Government response AI summary
The government's response repeats the recommendation from the previous item, failing to address the committee's concerns and observations.
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Department for Culture, Media and Sport
13
Recommendation
Seventh Report - Grassroots music venues
Acknowledged
The comprehensive Tariff Review, due to begin in summer 2024, is a useful opportunity to consider how concerns that have been raised with us, such as litigation, the ease of navigating processes and whether a GMV-specific tariff is feasible, can be mitigated or addressed for the next period. We recommend …
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The comprehensive Tariff Review, due to begin in summer 2024, is a useful opportunity to consider how concerns that have been raised with us, such as litigation, the ease of navigating processes and whether a GMV-specific tariff is feasible, can be mitigated or addressed for the next period. We recommend that our successor committee consider progress in the next Parliament.
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Department for Culture, Media and Sport
14
Recommendation
Seventh Report - Grassroots music venues
Acknowledged
Despite the welcome introduction of the agent of change principles, venues are still facing a widespread risk of closures due to planning and redevelopment-related issues. We recommend that the agent of change principles are put on a statutory footing at the earliest opportunity.
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Despite the welcome introduction of the agent of change principles, venues are still facing a widespread risk of closures due to planning and redevelopment-related issues. We recommend that the agent of change principles are put on a statutory footing at the earliest opportunity.
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Government response AI summary
The government states it will consider what can be done to improve the implementation of the existing agent of change requirement, rather than committing to putting the principles on a statutory footing.
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Department for Culture, Media and Sport
15
Conclusion
Seventh Report - Grassroots music venues
Deferred
As the costs of touring have mounted and opportunities to perform live are becoming squeezed, merchandise revenues are increasingly important to sustain the livelihood of professional artists and their business partners. We welcome that grassroots music venues are committed to ensuring artists can retain all of their merchandise revenues, despite …
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As the costs of touring have mounted and opportunities to perform live are becoming squeezed, merchandise revenues are increasingly important to sustain the livelihood of professional artists and their business partners. We welcome that grassroots music venues are committed to ensuring artists can retain all of their merchandise revenues, despite their own need for income.
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Government response AI summary
The government notes the item is directed at the industry and encourages venues and trade bodies to ensure fairness for artists regarding merchandise commissions.
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Department for Culture, Media and Sport
16
Recommendation
Seventh Report - Grassroots music venues
Deferred
We support the Featured Artists’ Coalition’s campaign for an end to punitive fees and its four principles on merchandise commissions, particularly given the current economic environment in which artists are trying to make a living. We call on all venues and trade bodies in the live music sector to follow …
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We support the Featured Artists’ Coalition’s campaign for an end to punitive fees and its four principles on merchandise commissions, particularly given the current economic environment in which artists are trying to make a living. We call on all venues and trade bodies in the live music sector to follow the FAC’s merchandise principles. (Paragraph 101) Grassroots music venues 39
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Government response AI summary
The government notes the recommendation is for the industry and encourages venues and trade bodies to ensure fairness for artists regarding merchandise commissions, without committing to any government action.
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Department for Culture, Media and Sport