The British Music Industry Responds to Government’s Spring Budget Statement: ‘Irresponsible Dispersal of Responsibility’

Disappointment in the Industry

The numbers from the entire industry expressed their disappointment after the statement of the Chancellor Rachel Reeves.

• Read more: 2025 can change the situation to finance British mass music, but when we see the action and where will the money go?

Economic Forecasts and Budget Cuts

Due to the budget liability department (OBR) revealing its latest economic forecasts, which reduced its prediction for this year from 2 to 1 percent, Reeves established new measures to lessen the governmental welfare bill.

Providing the spring statement—which is not an official budget, as the Laborists promised to deliver only one per year—today in parliament (March 26), Reeves announced the goal that government departments, including the Department of Culture, Media and Sports (DCMS), reduce their administrative budgets by 15 percent by the end of the decade.

The Chancellor also announced a further reduction in welfare, saying that the reforms revealed last week will save less than planned—3.4 billion pounds instead of the anticipated 5 billion pounds. According to Sky News, it is expected that a reduction in welfare will lead to another 250,000 people being pushed into hardship by 2030.

The universal loan health element will be slashed by half for new applicants and subsequently frozen. Additionally, there will be renewed attention on measures against tax evasion, alongside increased defense costs as the Ministry of Defense is set to receive an extra 2.2 billion pounds next year.

Meanwhile, there were assurances that the cuts announced today would be balanced by billions of pounds in long-term investments aimed at economic development, with a focus on constructing new homes and supporting heightened defense expenditures. Reeves stated that the disposable income “this year will grow almost twice the expected rate for the fall” this year, adding that “households will be on average more than 500 pounds a year better off under this government.”

Responding to today’s statement, the Music Pervine Trust (MVT) external affairs manager Sophie Brownley remarked that although business rates were reformed, “the gap created by a decrease in the relief of bets until this reform takes effect has resulted in a demand for 7 million pounds in the form of additional taxes on the premises.”

Brownley noted that this situation emerged from a sector that last year returned a total gross profit of only 2.5 million pounds across all 810 such sites in the UK. In NME, the institution’s facilities last month highlighted the challenges facing concert venues throughout the UK, with many deeming themselves “financially non-viable.”

“This reduction was not cushioned by any further measures in this spring statement, such as a VAT reduction on cultural tickets, a delay in implementing national insurance contributions (NIC), or enhanced protections against escalating development costs,” she emphasized, noting that this would severely impact local culture in already deprived communities, leading to further job losses and undermining local culture in the UK.

Similarly, Michael Kill, General Director of the Night Time Industries Association, expressed concerns, stating that if the current alarming patterns persist, nightclubs in Great Britain could close by 2029. He called the Chancellor’s statements a “reckless dereliction of duty” that fails to recognize the night economy’s significance.

Kill stressed that the government ignored compelling evidence of economic devastation in this sector, instead doubling down on what he termed “catastrophic financial policies” without taking decisive actions.

Indeed, findings from the MVT last year indicated that the landscape for live music suffered through 2023, with 125 venues ceasing operations and more than half of them closing entirely, including legendary spots in Bath.

Current restrictions include rising energy prices, landlord issues, increasing betting amounts, delivery costs, business licensing challenges, and ongoing pressures from COVID-19, the effects of which continue to impact independent venues.

“Despite repeated warnings and tireless lobbying to reverse the damaging measures introduced in the autumn statement, the government opted for inaction, thus condemning enterprises to an uncertain and foreboding future,” Kill added. “Rather than leverage the chance to implement crucial long-term reforms, this statement signals yet another nail in the coffin for an industry already on the brink.”

“As entrance fees take effect in April, the night economy now faces an aggravated crisis that threatens widespread closures, massive job losses, and economic stagnation. The Chancellor’s failure to introduce meaningful financial assistance is not merely negligent; it is a direct assault on the viability of an industry that contributes millions to the UK economy.”

Stating that the night economy is at a “turning point” following years of financial strain, Kill concluded that the NTIA demands “immediate and significant intervention” and will not support continued efforts while “our industry is systematically dismantled by political negligence.”

After the spring statement of the UK today, AIM Director General Davi commented on his influence on the independent community, especially with regard to the exclusion of the musical sector from the schemes of assistance to the creative sector.

See the application below ⬇ pic.twitter.com/5ijpiqomyo

– AIM (@Aim_uk) March 26, 2025

According to the overall sentiment in the industry, Davi, the General Director of the Independent Music Association (AIM), acknowledged the necessity to stimulate growth and balance the books but contended that suggested employment schemes and rising living costs would be ineffective if music enterprises cannot operate.

“The creative sectors play a unique role in generating hope, opportunities, and national well-being during challenging times, but there is an urgent need to focus on music,” Davi added.

“Rising labor, export, and tour costs, coupled with tariffs and consumer spending consequences, have a disproportionate impact on mass and independent music enterprises, workers, and artists. Despite being instrumental to success, creating music has been left out of tax assistance schemes that have benefited areas like British film and television.”

“This government has the chance to rectify this oversight and assist the music sector in supporting itself, stimulating internal and external investments in new music, with benefits that will resonate throughout the sector. This is a compelling policy that aligns with the government’s decisive mission to foster growth and opportunity.”

Just yesterday, Reeves faced backlash for accepting free tickets to a concert by Sabrina Carpenter. The Chancellor confirmed that she would declare their value following criticism aimed at other Labor Party members for accepting donations.

Prime Minister Keir Starmer recently reported expenditures of over 6,000 pounds for gifts and hospitality, which included six Taylor Swift tickets valued at £2,800 according to parliamentary regulations.