Live music and events leaders beg for VAT relief extension for sector ‘brought to its knees’

Culture sector leaders have joined hospitality bosses in calling on the Government to extend pandemic rates reliefs. 

Live music, theatre and events industry leaders launched a new #KeepVATat5  campaign on Thursday. They begged the Government to extend the 5% VAT relief currently allocated to their ticket sales beyond March 31st, saying that ending the relief at this point would have devastating consequences for the UK’s cultural landscape.

Both the business rates holiday and sector-specific VAT reliefs, which have been in place since April last year, are currently due to elapse at the end of March.

Ticket sales usually see a VAT rate of 20%.

In a letter to Chancellor Rishi Sunak written in advance of his March Budget, entertainment and events body leaders said that raising the rates back to pre-pandemic levels would “impact the entire ecosystem” of the sector, and lead to job losses. 

The letter was signed by the heads of leading associations representing thousands of businesses. 

Greg Parmley, CEO of LIVE (Live music Industry, Venues & Entertainment), said: “This policy was brought in to support our industry during these desperate times but currently we are still closed. Reversing this policy before we can start to sell tickets again would be perverse and cripple our recovery.”

Lucy Noble, Chair of the National Arenas Association, said the raise could be “the final nail in the coffin for many in the music industry” after "the whole sector has been brought to its knees by the pandemic”. 

The Department of Digital, Culture, Media and Sport Select Committee recommended a three-year extension to the 5% VAT policy in their Impacts of COVID-19 on DCMS Sectors report back in July 2020.

DCMS Committee chair, the Tory MP Julian Knight, said on Thursday: “Pulling the plug on the reduced VAT rate for ticket sales now would be short-sighted. 

“Now is the time to extend support for our vibrant creative sector, which could be a cornerstone of our economic recovery from this crisis.”