Nandy asked for ‘clarity’ on timescale for music venue levy

The Culture Media and Sport Committee (CMS) has called on Culture Secretary Lisa Nandy to provide clarity over the timescale for delivery of a music industry-led ticket levy to support grassroots venues, artists and promoters.

In its Grassroots Music Venues report published in May, the CMS committee made a series of recommendations to government to help support the sector, including the introduction of a voluntary levy on arena and stadium tickets no later than September 2024.

The report added that if this deadline was missed, the government should introduce a statutory levy “at the earliest subsequent opportunity”.

The Labour government’s official response to the proposals was published on 14 November. While it agreed a voluntary levy was needed and welcomed steps already taken by the live music sector, coordinated by the umbrella industry body LIVE (Live music Industry Venues & Entertainment), it stopped short of giving a road map to deliver the proposal.

“There is more to do to agree concrete proposals and implement a cross-sector approach, with buy-in from across the live music ecosystem. We want to see a voluntary levy come into effect as soon as possible for concerts in 2025,” said the government.

In a letter to Nandy, chair of the CMS committee, Caroline Dinenage called for clarity on how long the industry has to take action before the government steps in, adding that if no “significant progress” is made, the CMS committee will hold a hearing with the sector in six months.

An urgent crisis

Dinneage’s letter to Nandy outlines an “urgent crisis unfolding in the live music ecosystem up and down our country”.

While she welcomed government plans to permanently lower business rates for retail, hospitality and leisure properties from 2026 and introduce a “community right to buy” for cultural assets, she also expressed concerns that these “long-term reforms” will not address “the short-term mutually reinforcing rate of closures and cost of touring”.

The letter goes on to outline additional pressures on the sector as a result of last month’s budget, with the reduction of the business rate relief for Grassroots Music Venues from 75% to 40% from April 1st, 2025, estimated to cost the sector more than double its entire gross profit in 2023, according to the Music Venue Trust.

“This will result in the loss of jobs, performance opportunities and economic and cultural activity of intrinsic local value,” said Dinneage.

In her letter, the conservative MP for Gosport also expressed “disappointment” that the government will not be taking forward the committee’s recommendation for a fan-led review of live and electronic music to address “blind spots”, citing the previous leadership’s “willingness” to undertake such a review on football governance.

Government has said it will engage music fans this autumn with a consultation on improved protections in the secondary ticketing market and in a call for evidence on price transparency for live events ticketing.

“In light of the Industrial Strategy… we will not introduce a government-led fan review of music at this time. We would welcome any sector-led initiatives to better understand the voice of fans on issues beyond the ticketing market.”