UK Music has published its This Is Music 2022 annual report this week, revealing how the music sector has begun to recover from the initial impacts of the pandemic.
Speaking on the report, UK Music chief executive Jamie Njoku-Goodwin noted that the music industry still faces a ‘major threat from strong economic headwinds.’ He called for urgent action from the government, saying that the report showed the need to reduce the tax burden on the music industry, incentivise investment and help boost exports.
Key findings in This Is Music - based on data collated from across the music industry in 2021 – include that the UK music industry’s contribution to UK economy in 2021 was £4 billion. This is up 26 percent on the £3.1 billion figure for 2020, but still down 31 percent on the pre-Covid all-time high of £5.8 billion in 2019. The report also found that employment in the music industry rose to 145,000 jobs in 2021 - a 14 percent increase on the 128,000 jobs in 2020, but again still down 26 percent on the pre-Covid record of 197,000 jobs in 2019. Additionally, exports in the sector rose in 2021 to £2.5 billion - up 10 percent on the £2.3 billion figure in 2020, and down 15 percent from £2.9 billion in 2019.
This Is Music also highlighted some British success stories. In 2021, the biggest selling album in the world was Adele's 30. Ed Sheeran's = came in fourth, followed by Dua Lipa's Future Nostalgia in sixth place.
UK Music’s report measures the health of the music business by collating data about the sector’s contribution in goods and services to the economy. That economic contribution is known as Gross Value Added (GVA). The data shows that in 2021 the sector was recovering from the initial impact of the pandemic, as the music industry adapted.
Speaking on the report, Jamie Njoku-Goodwin says, ‘The UK music industry is working hard to recover after the catastrophic impact of COVID-19, but there is still some way to go to restore the jobs and growth lost during the pandemic. Our sector still faces a serious threat from the economic storm that could blow our fragile recovery off course without urgent Government support.
‘It’s vital that Government acts to protect and support a sector that creates jobs, contributes to the economy and matters to millions of people across our country. The new Prime Minister has said she wants to cut taxes to stimulate growth. If she is serious about this, then she should use the emergency budget to reduce the tax burden on the music industry, for instance, by extending the hugely successful creative industry tax reliefs to the music industry. This would incentivise investment and boost exports of British music, which are at risk due to increasing international competition and issues following the UK’s exit from the European Union.
‘We welcome the Government's announcement to combat the impact of soaring energy bills, which will give music businesses some urgently needed support. However, we need clarity about what happens after that support is withdrawn after six months. And we still need to see more assistance to secure our sector’s long-term recovery, including a significant cut in VAT from its current rate of 20% - something the Government did in the pandemic to support the music sector.’
Andrea Czapary Martin, chief executive, PRS for Music, says, ‘We support UK Music and its recommendations and call on the UK government to invest in the five-step plan. This includes setting a gold standard in intellectual property protection and reducing red tape for EU touring, to ensure the UK retains its position as a leader across all sectors of the music market.’
Nigel Elderton, chair, PRS for Music, says, ‘The UK is the second-largest exporter of music in the world however the global market for music is becoming far more competitive than ever before. Although this recent report highlights publishing-related income in 2021 as showing strong growth with substantial increases in streaming revenues, we must continue to work together to grow, nurture, protect and support songwriters, composers and rights owners alike, in order to maintain a sustainable future across this important sector of our UK economy.’
