UK Music chief executive Jamie Njoku-Goodwin has called on new Prime Minister Liz Truss to take urgent action to support the music industry through the cost of living crisis.
After congratulating the PM on her new appointment, Jamie called on the government to insulate the music industry against the cost of living crisis by cutting VAT from 20 percent to 5 percent, as it did during the pandemic.
The request follows a Conservative leadership contest that often focused on potential tax cuts, and comes one month after UK music asked both contenders to back six key pledges to support the UK Music industry. These pledges are:
• retaining a 'global gold standard' for copyright protection
• cutting the red tape facing UK musicians and crew touring the EU
• supporting UK music globally by boosting the funding for export schemes
• creating a fiscal incentive to encourage new music production
• reducing the tax burden on music industry businesses
• protecting the talent pipeline and securing the future of music education
Jamie Njoku-Goodwin says, ‘Congratulations to Liz Truss. We look forward to working with the new Prime Minister and her ministerial team at what is an immensely challenging time for the country.'
‘During the campaign, Liz Truss rightly talked about the need to tackle the crippling cost of living – and she must now deliver on that commitment immediately. Without urgent action to help music venues, studios and other music businesses, there is a real risk that many will go to the wall.’
‘Rocketing costs have created an existential threat for many music businesses and it’s vital the Government acts swiftly to protect the recovery that was under way in the music industry after the pandemic. Music venues alone have seen their fuel costs spiral by more than 300%, according to The Music Venue Trust.'
'The Government should make a significant cut to VAT from its current 20% rate to 5% – just as it did during the pandemic – and throw a lifeline to music businesses and help them through this crisis.Without urgent support, there is a real chance that the billions spend keeping businesses and venues afloat during the pandemic will be wasted and that would be a tragedy. We risk losing cherished venues, studios and other music companies forever. That would be a devastating blow and cause irreparable damage to the talent pipeline that ensures the UK produces global music stars.'
