Government back arena ticket levy to save grassroots music – but urgent deadline is needed to prevent “an even gloomier future”

The Culture, Media and Sport Committee has welcomed the UK government’s new backing of a levy on gigs at arena level and above to help save the grassroots music scene – but pressure is mounting for a clear deadline for the industry to take urgent action.

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

This past year has seen pressure mounting for the UK’s smaller venues and rising artists to receive a contribution from arena and stadium gigs to ensure their survival. 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.

The likes of Coldplay, Enter Shikari and Sam Fender have all adopted a levy of their own on huge tours to help save the grassroots, after 2023 proved to be “disastrous” and the worst year on record with 125 grassroots music venues shutting their doors – a rate of two per week. The Music Venue Trust argued that a tidal wave of closures threatens the fabric of the UK music scene thanks to the recent budget announcement, with the circuit and artists already suffering from “the complete collapse of touring“.

After frustration grew about the inaction of the upper echelons of the live music industry – who continue to report record profits – now the CMS committee have penned a letter that “welcomes the government’s recognition of the need for a levy and statement that the

government reserves the right to step in if an industry-led solution is not forthcoming in 2025” – but voices “concerns that these long-term reforms will not address the short-term,

mutually reinforcing rate of closures and cost of touring”.

As a result, there are now “calls for clarity on how long the industry has to take action before the government itself steps in”. In a letter to the Secretary of State Lisa Nandy, Committee chair Dame Caroline Dinenage MP has stated that if no significant progress is made, it will hold a hearing with the sector in six months’ time.

“The sheer number of venues in our local communities being forced to shut up shop each week has hammered home the stark reality of the struggles facing artists, promoters and others working in grassroots music,” said Dinenage. “There are warnings of an even gloomier future.

“While the Government has dialled up the volume on the message that swift action on a levy is needed from the bigger players who pack out arenas and stadiums, the lack of a firm deadline for movement risks allowing matters to drift.”

She continued: “Without healthy roots, the entire live music ecosystem suffers, so it is vital that the wider industry recognises the urgency of coming up with a scheme to direct a proportion of profits back to where many careers began.

“The Committee will keep banging the drum to make sure both the industry and Government plays it part in protecting our live performance ecosystem.”

The DCMS echoed the notion that “ministers now expect the sector to take forward proposals for a voluntary levy” before further steps are enforced by the government.

“Grassroots music venues are one of the UK’s most valuable and yet undervalued cultural assets,” said Creative Industries Minister Sir Chris Bryant. “They are where bands try out new material, where whole new genres are born, where musicians experiment and where audiences get to experience the raw power of live music.

“These venues support thousands of jobs and are a vital part of our local communities. Without a flourishing grassroots music industry the rest of our music industry will wither.”

He added: “It is crucial that we work together to support the grassroots including venues, festivals, artists and promoters. That is why I am urging the industry voluntarily to introduce a ticket levy on the biggest commercial players, to help ensure the health and future success of our entire live music industry for decades to come.”

Responding to the news, the Music Venue Trust welcomed the government’s “stance on the necessity and desirability of a grassroots contribution” and argued that “industry-led investment will enable fans across the country to keep accessing the live music that they love whilst also ensuring the talent pipeline to the arena and stadium level is secure and growing”.

They called it a “win-win” situation that would “deliver a sustainable and bright future for the UK’s grassroots venues, artists and promoters”.

Music Venue Trust CEO Mark Davyd told NME that while there was “a huge amount to celebrate in the work of this committee” and the government response to it,” Dinenage’s insistence on a timetable for change was imperative.

“As a result of this inquiry, we can now see a clear date in the future when our grassroots music community is properly respected for its cultural, social and economic value and impact,” Davyd told NME. “Major positive change is coming for the live music ecosystem, whether that’s through the grassroots contribution, the business rate review, or the opportunities arising from a new approach to investment and ownership from government.

“The one regret we have to acknowledge is that this change will take 18 months to deliver. Our sector now has to plan for an incredibly tough 18 months, with an additional crisis provoked by the unintended consequences of a budget that hasn’t been able to recognise the specific characteristics of grassroots music venues in a tough spending round.”

He went on: “Music Venue Trust calls upon all stakeholders, from national government to local councillors, the biggest record labels in the world to the artists just starting their careers, to do everything we can collectively to make sure our vital, essential, desperately needed music spaces survive through the challenging times ahead to enjoy the support we have fought for ten years to create.”

Davyd echoed his previous sentiment that there was “a hope bubble” that was keeping many venues open – with operators hanging on in the belief that essential and long overdue help was just around the corner.

“To the venues we say this: there’s light at the end of the tunnel and it’s not a speeding train coming to mow us down,” he added. “Hang in there. Let’s all work together to get us through the next year and a half. Then onward to a new and better grassroots sector for venues, artists, promoters and audiences.”

Featured Artists Coalition CEO David Martin, who has been vocal in his message of “what good is it keeping venues open if artists can’t afford to perform in them?”, also welcomed the news but called for urgency and clarity so that the much-needed levy funding could be spread around the ecosystem.

“The message coming from the Government and from the Culture Committee is loud and clear: the live music industry needs to deliver a blanket ticket levy at large-scale arena and stadium shows,” Martin told NME. “We need to do it quickly or it will be mandated upon us, and the fund must support the entirety of the grassroots live music sector, from artists and promoters to venues.

“The FAC welcomes today’s response, and we are ready to double down our efforts to get this over the line. If UK artists can’t afford to tour, the industry will not fulfil its potential.”

Chief Executive of the Music Managers Forum Annabella Coldrick agreed: “Everyone knows grassroots live music is in crisis. The current situation is untenable. Every week I hear from music managers trying to do the impossible and bridge catastrophic shortfalls in their artists touring budgets.

“A ticket levy on all large-scale live music events to support touring artists at this level to get out on the road remains the most practical solution. It is now imperative that we in the industry stand up and deliver it.”

Artists have also come forward to respond to the news. Alt-J’s Gus Unger-Hamilton said that the levy was a common-sense approach to maintain the talent pipeline of UK music.

‘We should celebrate those who have generously supported grassroots live music venues, but what artists really need is a sustainable, long-term support fund,” he argued. “A ticket levy on arena and stadium shows is the most practical way forward. If artists can’t afford to tour, we won’t have a live music scene.”

Big Joanie’s Estella Adeyeri agreed, arguing that otherwise the glass ceiling in the music industry will only get lower.

“Arenas can and should play a significant part in supporting the ecosystem of the grassroots sector,” Adeyeri told NME. “With many grassroots venues struggling to keep the lights on, and artists struggling to balance the books on tour while some in the live sector are posting record profits, the live music circuit is slowly swallowing up participation routes for those on lower incomes.

“Neither a career in the industry of any form – performer, stage tech, promoter etc – nor the opportunity to attend live music events should be allowed to become solely an elite pursuit.”

Singer-songwriter Roxanne de Bastion pointed out how grave the situation has got for artists unable to afford to hit the road.

“Since Brexit and the pandemic, artists have struggled with a cost of touring crisis and we are at breaking point,” she said. “The divide between those who can and those who can’t afford to make music is growing. It’s now imperative that the industry delivers a ticket levy on large-scale shows to help support artists and alleviate these challenges.”

Those concerned about a potential increase in the price of gig tickets are pointed towards  Enter Shikari who introduced a levy of their own at no extra cost to gig-goers. MVT’s Mark Davyd earlier suggested said that any levy would have to be incorporated into the ticket price automatically rather than on a voluntary basis by the artist.

“The reality is in our industry is that the artist is not always consulted on every levy,” he said. “The reality is that in fact, promoters and venues frequently try and construct a model that is profitable around a tour in which the artist does not know about the fees and charges.”

After the recent budget announcement, it’s argued that £7million in new premises taxes will place over 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.

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.

“To maintain a level of professionalism in this industry, you have to have all of the those things in place,” she said. “There really isn’t any money coming in to fund that. You get record labels that give you an advance that has to be split between a number of people. At the end of the day, you’re left with zero profit.”

She added: “In real terms, we don’t expect to make any profit from our tours. As a band we’ve been going for around four years. Currently, we’re working as artists over 40 hours a week. We’re working full-time but earning less than minimum wage. That’s not legal, but it’s the way that the industry works and the way it is now for us.”

The band since went on to win the Mercury Prize for their acclaimed debut album ‘This Could Be Texas‘.

Jon Collins, chief executive of the body LIVE, said that work was underway to ensure that future funding reached the venues, artists, festivals and promoters that needed it most.

“Alongside government’s work to deliver an improved trading environment, we are accelerating our work on the development of the LIVE Trust and associated funding to help distribute money to the places it’s needed most,” said Collins.

“Together with government, we will continue our work to help safeguard the future of grassroots music, and ensure our sector remains world-leading, brings joy to millions, and delivers economic growth in towns and cities across the UK.”