Select committee: Digital, Culture, Media and Sport Committee
Recommendation 10
Seventh Report - Grassroots music venues
Published 11 May 2024
Paragraph 64
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)
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.
From: Digital, Culture, Media and Sport Committee, Seventh Report - Grassroots music venues (HC 527), paragraph 64, 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.