Select committee: Digital, Culture, Media and Sport Committee
Recommendation 7
Seventh Report - Grassroots music venues
Published 11 May 2024
Paragraph 50
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 ↗
Recommendation (the committee's words)
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.
From: Digital, Culture, Media and Sport Committee, Seventh Report - Grassroots music venues (HC 527), paragraph 50, 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.