Select committee: Digital, Culture, Media and Sport Committee
Conclusion 3
Seventh Report - Grassroots music venues
Published 11 May 2024
Paragraph 40
Addressed to Department for Culture, Media and Sport
Digital, Culture, Media and Sport Committee Grassroots music venues All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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.
From: Digital, Culture, Media and Sport Committee, Seventh Report - Grassroots music venues (HC 527), paragraph 40, 11 May 2024
Government response
The government responded to the whole report on 14 November 2024 (deadline 11 July 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government agrees with the Committee that the music industry should introduce a voluntary levy on arena and stadium tickets, but declines a fan-led review and has "no plans" for a VAT cut or related analysis.
- On the voluntary levy, it wants to see one "come into effect as soon as possible for concerts in 2025", and it "reserve[s] the right to return to this matter if no satisfactory progress is made". It notes France's statutory levy and will continue to monitor other jurisdictions.
- It states that it is appropriate for the sector, "rather than government", to assess the levy's effectiveness, and says it will work with the sector as a "critical friend".
- On VAT, it "keeps tax policy under review" but has "no plans" to introduce a temporary cut based on venue capacity or to undertake a bespoke economic analysis of a VAT cut to 10% on tickets.
- On business rates, it "intends to introduce permanently lower tax rates" for retail, hospitality and leisure properties with Rateable Values below £500,000 from 2026-27, and has extended RHL relief at 40% for 2025-26. On agent of change, it "will consider what more can be done" to improve implementation of the existing requirement.