A voluntary levy on tickets to large concerts at stadiums and arenas should be introduced by 2025 to help fund grassroots venues, the Government has said.
Ministers expect the music industry to take forward proposals for the measure “as soon as possible” for shows next year, the Department for Culture, Media and Sport (DCMS) said.
The Government said an “industry-led” levy “within the price of a ticket” would be the quickest and most effective way for revenues from the biggest shows to help the grassroots sector.
Smaller venues have struggled in recent years after the pandemic and a period of rising inflation.
Some bands have already taken the step to donate a portion of ticket sales to help fund smaller venues.
Enter Shikari gave £1 of every ticket sold for their 2024 arena tour to the Music Venue Trust charity as a gesture of support for the grassroots live music sector.
Coldplay have also pledged to donate 10% of profits from their upcoming UK stadium tour to support smaller venues.
The recommendation for a levy was made earlier this year by Parliament’s Culture, Media and Sport Committee, which called for the measure to be in place by September.
The cross-party committee, chaired by Conservative Dame Caroline Dinenage, insisted it expected “industry bodies would work carefully to ensure that the impact of the levy is not passed on to the consumer”.
But the Government is understood to believe it is for the music sector to ultimately decide how the fee is implemented.
The group of MPs welcomed ministerial backing of its proposal but said a “firm deadline” is needed on how long the industry has to take action “before the Government itself steps in”.
However, Downing Street ruled out Government intervention if the sector refuses to introduce a levy, saying it supported a “voluntary industry-led approach”.
Dame Caroline said: “The sheer number of venues in our local communities being forced to shut up shop each week has hammered home the stark reality of the struggles facing artists, promoters and others working in grassroots music.
“There are warnings of an even gloomier future.
“While the Government has dialled up the volume on the message that swift action on a levy is needed from the bigger players who pack out arenas and stadiums, the lack of a firm deadline for movement risks allowing matters to drift.”
Creative industries minister Sir Chris Bryant said: “Grassroots music venues are one of the UK’s most valuable and yet undervalued cultural assets.
“They are where bands try out new material, where whole new genres are born, where musicians experiment and where audiences get to experience the raw power of live music.
“These venues support thousands of jobs and are a vital part of our local communities.
“Without a flourishing grassroots music industry the rest of our music industry will wither.”
He added: “That is why I am urging the industry voluntarily to introduce a ticket levy on the biggest commercial players, to help ensure the health and future success of our entire live music industry for decades to come.”
