UK Music has written to the Chancellor of the Exchequer to express concerns about the potential adverse impact on the live music sector as a result of the proposed change to business rates.
The letter, written on behalf of the UK Live Music Group, calls for measures to be put in place in the budget on Wednesday (8 March) to mitigate the worst excesses of the revaluation of business rates to prevent harm to culture and creativity in communities.
In her letter, UK Music’s chief executive Jo Dipple points out that venues in London could see rate increases of between 35 percent and 55 percent, which could require £3 being added to every gig ticket.
She said: 'The geographical disparity of the hardest hit venues ranges from the North West, North East, West Midlands, East Midlands and London so the idea that the rating revaluation is a fiscally-neutral rebalancing act from south to north to reflect property inflation is not borne out in reality for arenas. Whilst we understand that the intention of the revaluation is fiscal neutrality, it is evident that some sectors in the economy will be harder hit than others.
'Grassroots music venues act as important hubs for local music talent and offer a means by which musicians and performers can cultivate and nurture their creativity. In the last 10 years the sector has come under substantial external threats, resulting in a decline of 35 percent in the total number of grassroots music venues trading in the UK.
'In London, grassroots music venues are facing business rate revaluations of up to 200 percent. Considering transitional and other reliefs this could still see rises between 35 percent to 55 percent and may require £3 being added to every ticket or £150 on every hire. Music fans will undoubtedly suffer, either through having to pay more or having fewer venues to attend due to closures. Recent positives measures from the Government to eliminate challenges for grassroots music venues will be undermined by significant business rate increases.'
The move comes as other leading business groups across the UK express their concerns of the proposals.
Many of them, including the British Retail Consortium and CBI, have written a letter calling for it to be dropped.
Other signatories include the Federation of Small Businesses, the British Chambers of Commerce and the British Property Federation.
Pub and restaurant owners have also expressed their concerns to government.
The letter, written on behalf of the UK Live Music Group, calls for measures to be put in place in the budget on Wednesday (8 March) to mitigate the worst excesses of the revaluation of business rates to prevent harm to culture and creativity in communities.
In her letter, UK Music’s chief executive Jo Dipple points out that venues in London could see rate increases of between 35 percent and 55 percent, which could require £3 being added to every gig ticket.
She said: 'The geographical disparity of the hardest hit venues ranges from the North West, North East, West Midlands, East Midlands and London so the idea that the rating revaluation is a fiscally-neutral rebalancing act from south to north to reflect property inflation is not borne out in reality for arenas. Whilst we understand that the intention of the revaluation is fiscal neutrality, it is evident that some sectors in the economy will be harder hit than others.
'Grassroots music venues act as important hubs for local music talent and offer a means by which musicians and performers can cultivate and nurture their creativity. In the last 10 years the sector has come under substantial external threats, resulting in a decline of 35 percent in the total number of grassroots music venues trading in the UK.
'In London, grassroots music venues are facing business rate revaluations of up to 200 percent. Considering transitional and other reliefs this could still see rises between 35 percent to 55 percent and may require £3 being added to every ticket or £150 on every hire. Music fans will undoubtedly suffer, either through having to pay more or having fewer venues to attend due to closures. Recent positives measures from the Government to eliminate challenges for grassroots music venues will be undermined by significant business rate increases.'
The move comes as other leading business groups across the UK express their concerns of the proposals.
Many of them, including the British Retail Consortium and CBI, have written a letter calling for it to be dropped.
Other signatories include the Federation of Small Businesses, the British Chambers of Commerce and the British Property Federation.
Pub and restaurant owners have also expressed their concerns to government.
