MPs say a new stadium and arena ticket tax as well as a reduction in VAT are urgently needed to prevent the closure of local music venues. According to a report by the Culture, Media, and Sport Committee, music venues are closing or discontinuing live performances at a rate of two per week, causing artists to face a "cost-of-touring crisis".
The Music Venues Trust (MVT), which was present before the cross-party investigation, stated that 2023 had been the most difficult year for the industry since its founding in 2014. Meanwhile, Creative UK claimed that the grassroots music industry suffered a "battering". There were 835 grassroots music venues (GMVs) last year, down from 960 in total. This represents a net fall of 13 per cent and the loss of up to 4,000 employment and 30,000 events.
Managers of Manchester’s Co-Op Live arena are set to meet with a charity that is calling for a levy on ticket sales to support smaller venues.
The new 23,500-capacity arena will be the largest indoor arena in the UK when it opens but it has been beset by delays caused by technical issues, with Olivia Rodrigo shows being put back.
Mark Davyd of the Music Venue Trust charity said the meeting would be held once Co-Op Live is fully operational.
Who is using the tax?
The Music Venue Trust is looking for action to be taken, with its most recent annual report finding that 16 per cent of the UK’s grassroots music venues have been lost in the past 12 months – which is 125 locations.
The charity is looking to provide protection to venues and offer a platform to encourage the next generation of talent.
The idea of a £1 ticket tax has already come up before, with Billie Eilish fans charged a small levy when booking for her 2025 tour, which includes six dates in London.
The meeting between Davyd and the venue will happen now that previous Co-Op live chief executive Gary Roden has left, having dismissed the levy idea.
Why is it happening?
The cost-of-living crisis is putting previously unseen pressures on venues. Heating costs are high, the report said, while rents are also an issue.
For instance, Moles in Bath, which provided a launchpad for Ed Sheeran, Blur and The Smiths, among others, last year filed for insolvency.
The venue stated that the rise in costs and overheads and the impact of the cost-of-living crisis made it impossible to continue.
Moles’ statement read: “While all these venues have closed, seven new arenas are being built that will generate hundreds of millions a year.
“There needs to be a major shake-up of the live sector, with the big players supporting the grassroots where it all begins to secure that pipeline of talent. This is something that Music Venue Trust has been saying for years; maybe now the industry will listen.”
To try to achieve this, the trust wants a £1 levy for tickets for gigs with a capacity above 5,000 people.
Davyd said of Eilish that her levy is an “excellent initiative” and that there is “leeway”.
"This is an important piece of work, but we need to see it on every show the Co-op Live is doing and every ticket they sell," he told BBC Radio Manchester.
What have MPs said about ticket tax and why is it needed?
According to the study of the House of Commons committee, the industry would benefit instantly from taxing concert tickets at arenas and stadiums.
Dame Caroline Dinenage MP, the committee's chair, said "the ongoing wave of closures [of grassroots venues] is not just a disaster for music, performers and supporters but also puts at risk the entire live music ecosystem".
The MPs stressed that, even while fees would be added to tickets, arena and stadium owners, not spectators, should be responsible for paying the charge. The committee further stated that the Government ought to step in and make the subsidies a legal necessity if industry participants are unable to come to an agreement by September.
