The U.K. music industry has responded to the British government’s Autumn Budget statement, and called for it “to go further” with tax reliefs and implementation.
Presented by John Healey, Chancellor of the Exchequer, on Wednesday (Oct. 28), the biannual statement sets out the government’s spending intentions and monetary planning over the coming months. Healey assumed the role of chancellor in August, following the ascension of Andy Burnham to prime minister in July. Healey was preceded in the role by Rachel Reeves, who held the title under the leadership of Sir Keir Starmer.
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The statement was delivered in the Houses of Parliament and saw Healey unveil a raft of measures to ease the U.K.’s cost of living crisis and shield consumers from the rising price of gas and oil following President Donald Trump’s ongoing war in Iran.
Earlier this year, Burnham announced that there would be a 20% cut in business rates for pubs, clubs and music venues, a move that could save premises £1,000 ($1,300) every year. The initiative was welcomed by industry figures, but many reported that costs and business rates have risen far higher than that number.
The non-domestic and commercial properties tax in the U.K. bases its amount on the value of the property, and is payable to local councils.
In his statement, Healey announced that the reduction had increased to 35% and would be made eligible to all venues under a rateable value of £1 million (£1.33 million). Elsewhere, businesses underneath the rateable value of £18,000 ($23,591) will not pay any business rates with Healey saying that “70,000 retail, hospitality and leisure (RHL) businesses pay no business rates at all” as a result.
In a statement to Billboard U.K., the Music Venue Trust’s campaigns and communications manager Toni-Coe Brooker, said these were “positive steps toward easing the financial pressure on grassroots music venues.”
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She added, “Every pound saved on business rates is a pound that can help keep a venue open, support jobs and sustain opportunities for artists and audiences. The details of implementation will be crucial. Grassroots music venues operate through a range of business models, often combining live performance with other activities essential to their survival. The eligibility rules must recognize that reality, and councils must have clear guidance to ensure support reaches the venues it is intended to help.”
Brooker concluded, “These measures are welcome, but business rates are only one part of the challenge. Venues continue to face substantial operating costs and precarious margins. Lasting progress requires a sustainable approach to the spaces that nurture new talent and bring live music to communities across the country.”
A spokesperson for U.K. Music agreed that the rate relief was “good news” but said that “we want to see the government go further and extend this support to our world-renowned recording studios, which underpin a recorded music sector worth £1.57 billion ($2.09 billion) by introducing business rates relief for recording studios — in line with the temporary 40% relief currently available to film studios.” The message echoes a call for the measure by the industry trade body’s chief executive Tom Kiehl in the summer.
Earlier this summer, the government announced a growth package for the sector with financial incentives and distribution in the music education and jobs sector.
