UK Venues Under Threat from Increased Business Rates

The tax changes will have “devastating, unintended consequences”

Seventeen live industry bodies in the UK are protesting tax changes, claiming they will have “devastating, unintended consequences” for music venues. The organizations include LIVE, Music Venue Trust, the Association of Independent Festivals, the Music Managers Forum, and more.

The issues:

As per Music Ally, the issues stem partly from changes to the way the UK’s Valuations Office Agency values properties (and, therefore, their business tax rates), and partly from a rise in the “business rates multiplier” for large venues.
These changes come into effect in April.

Open letter:

An open letter to Prime Minister Sir Keir Starmer from the 17 live industry bodies warns that “hundreds of grassroots music venues will close in the coming years as revaluations drive costs up.”
It also predicts that ticket prices for arena shows will go up following the “dramatic rise” in tax costs.
As Music Ally points out, in a recent episode of The Price of Music podcast, co-host Steve Lamacq (who chairs LIVE) speaks of an arena facing an 80% rise in business rates under the new regulations.
The open letter emphasizes the fact that these new regulations contradict the Government’s own Industrial Strategy and Creative Sector Plan, which is designed to reduce barriers to growth for live events.

Amendments:

The industry bodies are asking for:
Immediate 40% Business Rates Relief for venues, in line with the 40% relief granted to film studios until 2034.
Fundamental reform of the valuation system, and a rapid inquiry into the Valuation Office Agency’s valuation methods for event spaces.

The issues:

As per Music Ally, the issues stem partly from changes to the way the UK’s Valuations Office Agency values properties (and, therefore, their business tax rates), and partly from a rise in the “business rates multiplier” for large venues.
These changes come into effect in April.

Open letter:

An open letter to Prime Minister Sir Keir Starmer from the 17 live industry bodies warns that “hundreds of grassroots music venues will close in the coming years as revaluations drive costs up.”
It also predicts that ticket prices for arena shows will go up following the “dramatic rise” in tax costs.
As Music Ally points out, in a recent episode of The Price of Music podcast, co-host Steve Lamacq (who chairs LIVE) speaks of an arena facing an 80% rise in business rates under the new regulations.
The open letter emphasizes the fact that these new regulations contradict the Government’s own Industrial Strategy and Creative Sector Plan, which is designed to reduce barriers to growth for live events.

Amendments:

The industry bodies are asking for:
Immediate 40% Business Rates Relief for venues, in line with the 40% relief granted to film studios until 2034.
Fundamental reform of the valuation system, and a rapid inquiry into the Valuation Office Agency’s valuation methods for event spaces.

The issues:

As per Music Ally, the issues stem partly from changes to the way the UK’s Valuations Office Agency values properties (and, therefore, their business tax rates), and partly from a rise in the “business rates multiplier” for large venues.
These changes come into effect in April.

Open letter:

An open letter to Prime Minister Sir Keir Starmer from the 17 live industry bodies warns that “hundreds of grassroots music venues will close in the coming years as revaluations drive costs up.”
It also predicts that ticket prices for arena shows will go up following the “dramatic rise” in tax costs.
As Music Ally points out, in a recent episode of The Price of Music podcast, co-host Steve Lamacq (who chairs LIVE) speaks of an arena facing an 80% rise in business rates under the new regulations.
The open letter emphasizes the fact that these new regulations contradict the Government’s own Industrial Strategy and Creative Sector Plan, which is designed to reduce barriers to growth for live events.

Amendments:

The industry bodies are asking for:
Immediate 40% Business Rates Relief for venues, in line with the 40% relief granted to film studios until 2034.
Fundamental reform of the valuation system, and a rapid inquiry into the Valuation Office Agency’s valuation methods for event spaces.