Government Action and the Ticket Levy
With the much-anticipated ticket levy expected to be implemented in 2025, this year is poised to significantly transform fundraising for grassroots music across the UK. But when can we expect to see tangible changes, and how will the funds be allocated? NME reached out to industry leaders for their insights.
Last year, the government supported a long-awaited introduction of a levy on tickets for gigs at arena level and beyond, adopting a ‘Premier League model’ where top-tier live industry players contribute back into the ecosystem to maintain a thriving talent pipeline, similar to practices in football.
There is an expectation that leading live industry companies will initiate a voluntary levy, with a crucial decision deadline in March. The government may step in to enforce a mandatory levy if no significant progress is made.
Following last year’s controversy during the Oasis reunion tour, the new Labour government has also vowed to cap prices on resold tickets and investigate dynamic pricing, promising a proactive stance in ensuring a more stable future for both UK music and its fans.
Support for Grassroots Music and Venues
Minister of State for Data Protection and Telecoms, Sir Chris Bryant MP, stated in an interview with NME: “Big venue success doesn’t happen without the innovation and creativity found in small venues. We are the first government to clearly back the call for a voluntary levy. Should voluntary measures not materialize soon, we will be obliged to enforce a statutory levy. I am optimistic that we will have something operational shortly, as I am actively working towards it.
“Experiencing a large arena performance of an artist you first discovered in a smaller venue is truly special. Without small venues, we risk losing the British success stories that the industry relies on.”
Beyond the levy, Sir Chris reaffirmed the government’s commitment to ensuring every child has the opportunity to learn a musical instrument in schools, emphasizing the need for a “proper creative education” that aligns with contemporary culture. He highlighted the concerning drop in children studying music at school, noting that many curriculums do not adequately prepare them to become musicians.
The Music Venue Trust has reported a “complete collapse of touring” within the UK, but grassroots venues are already receiving ticket levy contributions from artists such as Coldplay, Sam Fender, and Katy Perry from their upcoming tours. The MVT’s annual report for 2024 indicated a troubling trend, with one venue disappearing every two weeks last year and nearly 44% of venues operating at a financial loss.
Mark Davyd, CEO of the MVT, informed NME of a “very positive meeting” among key stakeholders in the industry discussing the need for a voluntary levy, expressing that “there was broad consensus from major promoters and arenas to make it a reality.” However, he also stressed there is no straightforward path, citing complexities around ticket prices and artist expectations.
Davyd expressed that success will require a “blanket approach” covering all major tours, emphasizing that without such a measure, the government may feel compelled to legislate. “We cannot afford half-measures. We have to deliver this as an industry or face statutory obligations,” he stated.
Davyd indicated that to be deemed “successful,” the levy must distribute between £13 million and £20 million annually. “The crucial question is: ‘What impact will this have?’,” he noted. “Our focus needs to be on long-term changes that facilitate affordable touring for every artist.” He acknowledged that while it may not be feasible to subsidize all touring costs, addressing reasonable expenses like accommodation and venue operations is essential – echoing successful models seen in Europe.
Despite potential reforms in place by 2025, Davyd conveyed that many venues will still face significant challenges due to existing business rates, ticket taxes, and logistical delays related to the levy implementation. “The situation is dire, and without intervention or adjustments from the government, we will retain obstacles beyond 2025,” he added.
