Glasgow Outdoor Tax May Cause TRNSMT Festival To Leave

Ryan Buchanan – TRNSMT Festival 2018
Liam Gallagher experiencing the energy stemming from the Glasgow audience

Geoff Ellis of DF Concerts has warned Glasgow City Council that he’d consider leaving the city with his flagship event TRNSMT Festival, should the politicians push through a new tax on outdoor entertainment.

According to the Scottish Herald, Glasgow City Council leaders voted to introduce a new concert ticket tax in order to balance the toll taken by big events on city parks.

– Geoff Ellis
Chief executive of DF Concerts

Ellis told the paper: “Quite simply we are now accelerating towards the cliff edge in terms of outdoor events in this city.

“It is of concern to me, and should be to everyone involved in tourism and culture in Glasgow, that promoters and other event organizers will now be encouraged to start events in other cities knowing that our ability to attract strong artistic talent to Glasgow is compromised by hundreds of thousands of pounds per event.

“I now have to decide whether to lead or follow in that respect and it is the business challenge that I now face.”

Ellis added: “My objection to this tax is that of a fully-fledged business member of Glasgow’s culture and tourism community.

“I have some difficult decisions to make about the outdoor events that I run in Glasgow, which last year saw over a quarter of a million people attend, many of whom came from outside of the city, generating an economic impact in excess of £10 million.”

According to the report, the new tax would add up to £2.50 onto the price of tickets for outdoor events, such as TRNSMT Festival, which takes place on Glasgow Green in the city center.

A council spokesperson told the Herald: “The feedback we have received from the public is that they welcome large scale events in the city and appreciate the cultural vibrancy that they bring. 

“The public has also told us how much they value our green spaces and how they would like to see a more direct connection between the events we host and income being invested back into our parks. 

“The environmental levy is about striking an appropriate balance between supporting our green spaces and using parks to host large events.” 

Glasgow City Council currently faces the challenge of closing a £40.9 million ($54 million) spending gap.

Pollstar reached out to Mark Mackie of Regular Music, promoter of Summer Nights at the Bandstand in Glasgow’s Kelvingrove Park, which already sold out all 26,000 tickets for the 2019 edition.

Mackie said he hadn’t been approached by the council yet, but expected to be in time for next year’s Summer Nights at the Bandstand edition.

Glasgow City Council justifies the new tax with the environmental impact large scale events have on the city’s parks and the costs associated with cleaning them up again.

Clean-up costs are usually part of the hire fee promoters pay the city to rent out a certain area, which is why Mackie suggested raising the hire fees instead of imposing a tax on tickets. Given the current rental fees, which were relatively low, there was room to increase them, he said.

– Mark Mackie
CEO of Regular Music and one of Glasgow

But even in terms of rental prices, surrounding cities offered more attractive rates, according to Ellis, who told the Herald: “Stirling and Dundee are very keen for us to make use of their assets and the rental prices they’re offering us are far less than Glasgow. If you’re an event organizer you’re going to go to these places ahead of Glasgow.

“As long as they put this tax in place, Glasgow’s going to suffer and it will be to the benefit of other cities. It’s well-meaning, but ill-conceived and short sighted of the council to introduce a tax of £2.50 on anyone attending an event with a commercial aspect in the city’s parks, including free events across the city. 

“Substantial environmental maintenance sums are already paid by promoters and event organizers to use greenfield spaces in Glasgow as part of other operational costs including policing, medical services, cleaning, stewarding, welfare, staging and power.

“I think the council aren’t as aware of the knock-on impact as they should be. This tax will mean there are fewer events in Glasgow, and fewer people visiting the city, which will hit nightclubs, bars, shops, restaurants and hotels.”