The big takeaway from Sunak’s plans is the spending increase of £150 billion, a 50% discount on business rates for music venues – as well as pubs, cinemas, theatres, restaurants, hotels and gyms.
COVID halved music’s economic contribution to the UK economy from almost £6 billion a year to £3.1 billion in 2020. If the Government relays their for-told plans and deliver the support we need them to, hopefully, the music industry will strike back bigger than ever before.
However, one key work that they failed to discuss was a tax-relief scheme for music, a bit like those successfully implemented in other entertainment sectors.
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“It is clear that the most effective way for the Government to support the industry’s recovery into 2022 and beyond would be to extend the VAT reduction on tickets, look closely at a permanent cultural VAT rate, and completely remove festivals based on agricultural land from the business rates system.
Unfortunately, none of this was forthcoming today.”
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Independent Festivals CEO, Paul Reed
MvM 