Features
UK Biz Valued At $8 Billion As Grassroots Sector Struggles
UK trade organization LIVE published its annual UK Live Music report Sept. 4, showing that the live sector’s contribution to the UK economy last year exceeded £6 billion ($8 billion) for the first time. “Live music continued to recover from the pandemic and tackled challenges including high inflation, the cost-of-living crisis, and post-Brexit touring issues to achieve a year-on-year uplift of 17% since 2022, and an increase of 35% on the pre-pandemic, 2019 figures,” according to a press release summarizing the report’s findings.
The data is based on analyzing 55,000 gigs, concerts, festivals and events in 2023, and was gathered by research agency CGA by NIQ. It shows that the growth in the sector last year was driven largely by concert revenues which jumped by 19% year-on-year and accounted for nearly three quarters (73.5%) of the total, boosted by the tours of major artists, such as Beyoncé and Coldplay. London accounted for nearly a third (30.6%) of total live music revenue, while Manchester took the second highest at 7.4%, and Glasgow took the lead in Scotland with 5.5% of the UK’s share. Other cities in the top 10 included Edinburgh, Birmingham, Cardiff, and Belfast.
In line with the rest of Europe, the positive figures were largely generated by the blockbuster acts, which have no trouble selling tickets these days. However, the reports identifies “significant challenges” that “remain for grassroots music venues, small festivals, and up-and-coming artists which are vital to the future of the live music industry. Festivals and grassroots music venues closed down at an alarming rate with 36 festivals cancelled and 125 grassroots music venues permanently shut last in 2023. In 2024, according to the latest report published by the UK’s Association of Independent Festivals (AIF), 60 have already been called off, some shut down for good, others with plans to return next year.
LIVE is therefore calling on the UK government to reduce the current rate of 20% VAT (sales tax) on tickets, which the organization describes as “damaging and uncompetitive compared to other European markets.”
Jon Collins, CEO of LIVE, commented, “2023 delivered significant growth for many sections of the live music ecosystem. We had some of the biggest names in music sell out tours and festivals across the UK, but we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs.” And, referring to the new Labour government’s pre-election promises made to the sector, Collins continues, “We welcome the commitments made by the government to put the creative industries at the centre of the UK’s economic growth plan. Reintroducing a lower rate of VAT on tickets would bring the UK into line with international competitors and would be pivotal in unlocking the economic potential of our industry. With a lower rate of VAT on tickets, we could see the sector grow further, supporting more jobs, generating more investment, and putting on more gigs, festivals and tours for people to enjoy.”
Steve Lamacq, chair of LIVE, added, “Our live music sector is world-class offering concerts, festivals, gigs and more to suit every music taste. Last year, we saw much of the live music sector triumph over adversity; faced with a spike in costs as a result of inflation, the cost-of-living crisis and labour shortages, fans had more concerts and festivals than ever to enjoy. However, we cannot forget that urgent action is needed to support the many grassroots venues, artists, and festivals which continued to struggle last year.”
For the report, LIVE and CGA liaised with operators, associations, music licensing bodies and ticket agencies to agree on how to evaluate live music in the UK. Combining data from these key stakeholders and CGA’s own proprietary hospitality research sources created what LIVE described as “a robust model for the calculation of the revenue and employment of the sector. Revenue is based on data from more than 55,000 gigs, concerts, festivals and events where music was a core part of the entertainment, and captures box office income, venue spend and spend immediately before and after attending events.”
But, as the report acknowledges, “the value of the live music sector extends well beyond measurable revenue and employment sources. It does not capture the contribution of the myriad events that take place in pubs and bars across the UK, incidental music like open mic nights, live background music, unticketed bands or DJ sets or karaoke, and the grey area of arts and other festivals that have a large musical element. This means that while these figures are accurate and impressive indicators of the core live music sector, there is even more value out there.”