Source · Select Committees · Culture, Media and Sport Committee
Seventh Report - Grassroots music venues
Culture, Media and Sport Committee
HC 527
Published 11 May 2024
Recommendations
2
Rejected
Launch a fan-led review of the live and electronic music ecosystem by summer 2024.
Recommendation
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 …
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Government Response 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.
Department for Culture, Media and Sport
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4
Acknowledged
Para 41
Introduce a voluntary levy on arena and stadium tickets by September 2024 to support grassroots venues.
Recommendation
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 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.
Department for Culture, Media and Sport
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5
Accepted in Part
Para 42
Publish an assessment of the voluntary levy's effectiveness on grassroots music venues within 12 months.
Recommendation
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 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.
Department for Culture, Media and Sport
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6
Deferred
Para 43
Introduce a statutory levy if the voluntary scheme fails to support grassroots music venues.
Recommendation
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 …
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Government Response 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.
Department for Culture, Media and Sport
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7
Acknowledged
Ensure broad representation and utmost transparency for the charitable trust administering live music levy funds.
Recommendation
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, …
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Government Response 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.
Department for Culture, Media and Sport
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8
Rejected
Para 59
Introduce a temporary, capacity-based VAT cut for grassroots music venues to stimulate activity.
Recommendation
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 …
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Government Response 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.
Department for Culture, Media and Sport
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9
Rejected
Para 60
Undertake comprehensive economic analysis of VAT cut impact on live music, modelling different approaches.
Recommendation
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 …
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Government Response 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.
Department for Culture, Media and Sport
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10
Accepted
Ensure future fiscal policy provides long-term certainty for GMVs, tapering any business rates relief reduction.
Recommendation
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 …
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Government Response 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.
Department for Culture, Media and Sport
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11
Acknowledged
Reduce administrative burden for live music sector when applying for public funding.
Recommendation
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 …
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Government Response 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.
Department for Culture, Media and Sport
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13
Acknowledged
Para 89
Instruct successor committee to monitor progress of PRS for Music's Tariff Review.
Recommendation
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 …
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Government Response Summary
The government restates the recommendation.
Department for Culture, Media and Sport
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14
Acknowledged
Para 95
Place agent of change principles on a statutory footing at the earliest opportunity.
Recommendation
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 …
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Government Response 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.
Department for Culture, Media and Sport
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16
Deferred
Urge all live music venues and trade bodies to follow FAC merchandise principles.
Recommendation
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 …
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Government Response 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.
Department for Culture, Media and Sport
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Conclusions (4)
1
Conclusion
Acknowledged
Para 19
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 …
Government Response 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.
3
Conclusion
Acknowledged
Para 40
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 …
Government Response 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.
12
Conclusion
Not Addressed
Para 88
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 …
Government Response Summary
The government's response repeats the recommendation from the previous item, failing to address the committee's concerns and observations.
15
Conclusion
Deferred
Para 100
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 …
Government Response 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.