U.K. Government Backs Plans for Arena Ticketing Fee to Support Smaller Music Venues

LONDON — The British government is calling on the live music industry to introduce a voluntary levy on stadium and arena tickets sold in the United Kingdom “as soon as possible” to “safeguard the future of the grassroots music sector.”

“We believe this would be the quickest and most effective mechanism for a small portion of revenues from the biggest shows to be invested in a sustainable grassroots sector,” said the Department for Culture, Media and Sport (DCMS) in a report published Thursday (Nov. 14).

Earlier this year, a cross-party committee of MPs said a new levy on arena and stadium tickets was urgently needed to stem the tide of small grassroots music venue closures in the United Kingdom.

According to the Music Venue Trust (MVT), the number of grassroots music venues (defined as limited capacity venues regularly staging live music) in the U.K. declined from 960 to 835 in 2023, a fall of 13%, representing a loss of as many as 30,000 shows and 4,000 jobs. 

Responding to the Culture, Media and Sport Committee’s report on the grassroots live music sector, published in May, the government said Thursday that it was “deeply concerned” with the rate of venue closures and that “a small industry-led levy within the price of a ticket” would benefit the U.K.’s live music system “as a whole.”

The government said it wanted the voluntary levy to come into effect “as soon as possible” so that it could be applied to arena and stadium music shows taking place in 2025. How the funds raised will be used to support small and low-capacity music venues should be clearly explained to ticket buyers, said the government. 

“We urge the live music industry, and in particular the biggest commercial players who will have the biggest impact on the success of an industry-led levy, to act and to do so swiftly,” said DCMS.

Exactly what form such a levy on arena and stadium shows will take is still to be determined. While there is broad support throughout the U.K. live music industry for a voluntary levy, some promoters would prefer that it is applied on a case-by-case basis and stakeholders are divided on whether the levy should be included within the ticket’s price or as an additional fee on top of the face value of the ticket.

The size of venue the levy would be applied to and its cost/rate is also yet to be decided, although the Music Venue Trust has previously called for a £1 levy ($1.26) to be applied to arena and stadium shows above 5,500 capacity, excluding festivals. Discussions are currently taking place between live executives around what charitable body should collect, manage and distribute proceeds from the fund.

In a statement, Jon Collins, chief executive of live music industry umbrella organization LIVE, said driving forward “an industry-led solution to the challenges currently being experienced by venues, artists, festivals and promoters remains our number one priority.”

The idea of a voluntary arena tickets levy to support the grassroots music sector is one that has already received support from several high-profile U.K. artists and organizations.

In September, Coldplay announced that it would be donating 10% of the band’s proceeds from their 2025 dates at London’s Wembley Stadium and Hull’s Craven Park stadium to the Music Venue Trust.

Other acts backing the initiative include rock band Enter Shikari, who donated £1 from every ticket sold on its February U.K. arena tour to the trust, and Sam Fender, who has pledged to do the same on his forthcoming U.K. dates. This year, Halifax-based venue The Piece Hall became the first U.K. venue to give ticket-buyers the option to donate to the charity.

A similar scheme to support grass roots music creation exists in France, where a statutory 3.5% levy on the gross value of all concert tickets sales goes into a central fund administered by the Centre National de la Musique (CNM), France’s public agency for the music industry.

“This is the beginning of a way forward,” Kwame Kwaten, director of artist management company Ferocious Talent, whose roster includes Blue Lab Beats, Hak Baker and Caitlyn Scarlett, tells Billboard.

“If [the levy] happens, it will at least begin the process of addressing something that has been left out to dry with humongous consequences, especially at the kind of levels that we have to operate at before an artist gets to the arena, stadium level, which is where 80-90% of [touring] artists are,” says Kwaten, who gave evidence to the CMS committee during the inquiry.

“We are standing at a massive crossroads,” he says, “and we have now got a chance to do something about it.”

In a statement, CMS Committee chair, Dame Caroline Dinenage, said she welcomed the government’s recognition that “swift action on a levy is needed from the bigger players who pack out arenas and stadiums,” but warned that “the lack of a firm deadline for movement risks allowing matters to drift.”

“Without healthy roots, the entire live music ecosystem suffers,” said Dinenage, who is calling for government ministers to set a clear deadline for the industry to act. If no significant progress is made within six months, she said the CMS committee will hold another hearing with representatives of the U.K. live music industry.

“Every week I hear from music managers trying to do the impossible and bridge catastrophic shortfalls in their artists touring budgets,” said Annabella Coldrick, chief executive of U.K. trade body the Music Managers Forum (MMF), in a statement. Coldrick says it is “imperative” that the music industry comes together to establish a ticket levy on “all large-scale live music shows” to support smaller scale touring artists. “The current situation is untenable,” she says.

The U.K. government’s support for an arena ticket levy is the latest in a long line of Parliament-led interventions into the music industry that have taken place in recent years, including a nine-month probe into the music streaming business and a subsequent review of the sector by the U.K. competition watchdog.

More recently, authorities have turned their attentions to the live industry. In September, the Competition and Markets Authority (CMA) launched an investigation into Ticketmaster over its much-criticized use of dynamic ticketing for Oasis‘ reunion tour, which prompted hundreds of complaints from fans and fierce condemnation from British politicians.

The British government has also said it would be looking into the practice of dynamic pricing for music concerts as part of its consultation into the secondary ticketing market, which is due to begin in the coming weeks.