UK music contributes record £7.6billion to the economy – while the grassroots remain under threat

A new report has found that the UK music industry contributes a record £7.6billion to the country’s economy, despite the grassroots sector remaining under threat.

• READ MORE: UK grassroots venues suffering from “the complete collapse of touring” – here’s how you can help

Findings from UK Music’s This Is Music 2024 report today (November 20) have revealed that the industry’s contributions to the economy in 2023 increased by 13 per cent from 2022, marking a record high.

The increase is part of a wider trend, with UK music exports revenue also hitting a new high of £4.6billion, up 15 per cent from the previous year. Elsewhere, employment is also up, with 216,000 people now working in the industry, compared to 210,000 in 2022.

Though these statistics point to growth in the industry, much of the grassroots sector continues to face challenges. For venues, 2023 proved to be “disastrous” and the worst year on record with 125 grassroots music venues shutting their doors.

Music Venue Trust (MVT) has also pointed to a potential “complete collapse of touring” as a result of the recent budget announcement that introduces £7million in new premises taxes. MVT has suggested that this will place 350 grassroots music venues at immediate risk of closure – threatening more than 12,000 jobs, over £250million in economic activity and the loss of over 75,000 live music events.

Responding to today’s figures, UK Music’s Chief Executive Tom Kiehl highlighted the challenges facing the sector despite it’s growth, including: “Increasing global competition, tough financial conditions for artists and the grassroots, as well as the wild west that is generative Artificial Intelligence (AI).”

6️⃣ “We are at a tipping point” – @TomKiehl warns action needed now to secure future growth. #ThisIsMusic2024 pic.twitter.com/iHzdF0TPoS

— UK Music (@UK_Music) November 20, 2024

Kiehl highlighted four key areas where urgent action is needed to help the sector grow. These are to: “Promote changes to the law that safeguard against unregulated AI, and reject proposals that fail to achieve this,” and “ensure every child and young person across the UK has access to free music making.”

Kiehl also stated a need to “Introduce a cap on secondary ticket resale prices,” and to “fight for visa-free touring for musicians and crew.”

• READ MORE: “What good is it keeping venues open if artists can’t afford to perform in them?” ask the FAC

Culture Secretary Lisa Nandy has reacted, highlighting the cultural importance of British music. “From global superstars like Harry Styles and Adele, internationally-renowned festivals like Glastonbury and Parklife and a huge range of vibrant subcultures, the music industry is a real British success story,” she said. These impressive new figures underline how vitally important it is to driving growth – as it boosted its value to our economy by nearly a billion pounds in one year.

“I am committed to ensuring that the government works with industry to build upon its current success in the years to come,” she added. “By supporting vital grassroots venues, introducing new secondary ticketing protections for fans and ensuring all children can access high quality music education in schools, we can help the sector go from strength to strength in the future.”

Mark Davyd, CEO of Music Venue Trust has also responded to the findings, saying: “You can try to tell me that the music industry cannot afford to invest in its grassroots to ensure it has a bright future. But I’m afraid I don’t believe you, and neither does the government.”

The government recently backed a levy on gigs at arena level that will see the UK’s smaller venues and rising artists receive a contribution from bigger gigs.

The model, similar to the one seen in the Premiere League of football and already in use in several countries across Europe, was recommended by MPs after a DCMS investigation back in Spring.

Major artists like Coldplay, Enter Shikari, Sam Fender and most recently Katy Perry have all adopted a levy on their upcoming UK tours, and now there are increased calls for a clear deadline for the industry to take urgent action.

The closures of venues creates a larger issue in the industry, impacting touring artists trying to reach new audiences and gig-goers seeking new music.

Earlier this year, David Martin of the FAC – a trade union body representing the needs of musicians and artists in the UK, wrote to NME to highlight this, saying that even if venues remain open, many artists can no longer afford to play them.

“Even those playing to relatively modest audiences have to bear substantial costs to tour the UK – from transportation, accommodation and rehearsals to paying the salaries of musicians, crew, production, agents and managers,” he said. “That’s on top of recording, and the increasing demands of promotion – all activities which create the demand for shows in the first place.”

Speaking at a Parliamentary session earlier this year, English Teacher frontwoman Lily Fontaine explained how artists are facing “a crisis in terms of funding” and being able to support themselves.

“There is a lack of funding for musicians to create music,” said Fontaine. Giving a long list of outgoing expenses faced by artists, Fontaine mentioned studio time, rehearsal space, tour managers, engineers, van hire, musicians, non-artist fees, driver fees, accommodation, travel, carnets, visas, insurance, equipment, food, drink and photography to name a few.