More than 100 festivals could vanish in 2025 delivering a devastating blow to the UK music industry unless chancellor Rachel Reeves delivers the lifeline of a temporary VAT reduction on ticket sales.
Whilst the mega festivals such as Glastonbury and Reading & Leeds continue to rake in huge profits with record ticket sales, those further down the ecosystem are struggling to survive.
The worrying development was revealed in the UK Music annual report This Is Music 2024
Which revealed the huge £7.6bn contribution the industry makes to the national economy.
Highlighting a stellar year for live music over the previous 12 months with artists such as Elton John, Blur, Pink and Ed Sheeran all playing big UK shows, with breakthrough acts like The Last Dinner Party and English Teacher rising to national prominence
Yet whilst major acts blossomed significant challenges threaten the UK’s world-leading status.
This is highlighted by an estimated 192 festivals having disappeared since 2019 with 60 festivals announcing a postponement, cancellation or closure in 2024, according to the Association of Independent Festivals.
This includes the final staging of the hugely popular Secret Garden Party in Cambridgeshire and closure of Cosmic Roots Festival in Basingstoke and Witcombe Festival in Gloucester.
The AIF said that without Government intervention it fears the UK will see more than 100 festivals disappear due to soaring costs and are urging Ms Reeves to introduce a 5% For Festivals VAT cut. They hope this would provide a life-support system whilst the industry moves towards a £1 levy on all stadium, arena and major festival tickets to support the grassroots music scene.
AIF CEO John Rostron said: “The number of festivals forced to cancel, postpone or shut down entirely in 2024, largely because of unpredictable costs and a credit crunch within the sector, shows no signs of slowing. There is an urgent need for government intervention through a temporary reduction in VAT on ticket sales to 5%.”
The Daily Express’ Strike A Chord Crusade is fighting to save the nation’s failing music education system and create a more successful funding model to enable a reinvigorated talent pipeline in which these students can flourish.
UK acts Coldplay, Sam Fender and Enter Shikari along with US star Katy Perry have already agreed to make the voluntary contribution from upcoming shows and the Government has urged the entire industry bigwigs to adopt the scheme or face statutory regulation.
Rostron added: “We reject the idea that any reduction would need to be funded. Venues and festivals are closing and will continue to do so. With lower VAT, many would remain open and make a positive contribution to HM Treasury and revenue collection.”
The This Is Music 2024 report showed the UK music’s contribution to the national economy in 2023 was £7.6 bn – up 13% from £6.7 bn in 2022 – with £4.6bn in exports and 216,000 employed.
UK Music’s chief executive Tom Kiehl said the figures were evidence the “music industry is ideally placed to turbo charge the new UK government’s mission to secure the highest sustained growth in the G7.”