3rd Special Report - Grassroots music venues: Government response

This is the government's response, published 14 November 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.

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