Music venues across England to see business rates cut by 15 per cent, Treasury confirms
The move comes after figures revealed that more than half (53 per cent) of grassroots music venues (GMVs) didn’t make any profit last year
By Nick Reilly
Music venues and pubs in England will get a 15 per cent reduction on their business rates bill from April as part of a major new support package, the Treasury has confirmed.
It comes after the Music Venue Trust (MVT) revealed in its annual report last week that more than half (53 per cent) of grassroots music venues (GMVs) didn’t make any profit last year. The report cited that current business rates were among the reasons that venues were unable to turn a profit.
Though welcome news for music venues and pubs, other hospitality businesses such as hotels, restaurants and cafes will not receive additional support.
MVT CEO Mark Davyd said he warmly welcomed the announcement, but would now be exploring if the rates cut was sufficient.
“We want to thank MPs, Mayors, unitary and local authorities, and especially music fans and communities across the country who have spoken up on this issue and ensured that Grassroots Music Venues are included in the immediate relief,” Davyd said.
“We will be exploring with our Music Venues Alliance venue members if the proposed 15% reduction in rates payable, followed by a freeze for two years, is sufficient to manage this crisis, which threatened to close hundreds of venues in the next three years. There is a commitment to review the calculations at the core of this issue, and we will fully support that review of Rateable Values. Grassroots Music Venues, and other crucial parts of the music ecosystem such as recording studios and rehearsal spaces, require a specific valuation process that recognises their cultural and community value and we hope this review can deliver that.”
Expressing the need for such relief to be extended to all the home nations, Davyd added: “Attention now turns to venues in Scotland, Wales, and Northern Ireland, where the same core issue – extreme revaluations of cultural spaces resulting in unaffordable rates demands – need to urgently be addressed.”
UK Music, an industry wide umbrella organisation, argued that the reduction should also be extended to recording studios.
“While the extra support for pubs and music venues is welcome, we must not forget recording studios that are facing crippling rate increases that will leave many facing closure,” said CEO Tom Kiehl.
“Why should the studio used to film Hamnet be entitled to business rate relief, yet the studio used to record the soundtrack not be eligible? This is pure discrimination and recording studios must not be treated as poor cousins in the creative economy. The Government must think again and extend a lifeline to support our world-leading studios that play such a vital part in our communities, talent development and support thousands of jobs.”
In their annual report last week, the MVT outlined plans to introduce programmes such as Venue MOT, which will allow independent venues to access experts who will tell them where to strengthen financially.
Last year, Sam Fender was widely praised after he donated his £25,000 prize from winning the Mercury Prize to the Music Venue Trust.