Live sector lobbies for continued VAT cuts

Sector organisations and the DCMS Select Committee are calling for an extension to VAT cuts.

The Government temporarily reduced the VAT rate from 20% to 5%, but with the tax due to increase again, the entire ecosystem of live entertainment is at risk, leaders say.

They have implored Chancellor Rishi Sunak to maintain the reduction: "The sector has been shuttered due to lockdowns and hasn’t benefited from the reduction yet – it will have been a pointless policy if it is now raised just as events are gearing up to sell tickets again."

The DCMS Select Committee has recommended a three year extension.

Greg Parmley, CEO of LIVE (Live music, industry, venues and entertainment) said the policy, brought in to support the sector during desperate times, is still needed.

"Reversing this policy before we can start to sell tickets again would be perverse and cripple our recovery."