UK Autumn budget places grassroots spaces at “immediate risk of closure”, Music Venue Trust warns

The UK’s grassroots venues are set to be impacted by the 2024 autumn budget.

Chancellor Rachel Reeves’ has announced plans for a net increase in alcohol duty and a rise in employer National Insurance Contributions (NIC) to 15%, which will impose “significant costs on businesses,” as pointed out by the Night-Time Industries Association (NTIA) in a press release.

In addition, although business rate relief for grassroots music venues will be extended by two years, it will be reduced from 75% to 40% from 1st April 2025, “with the benefit negated mainly by a series of tax hikes that threaten the sector’s financial stability.”

“While the Chancellor has listened to our plight, the extended business rates relief is a minor concession amongst the array of tax increases and fiscal shifts, which will take some time to evaluate and consider regarding sector impacts. However, in simple terms, it is still double the contribution of the current business rates.

“This relief will be immediately undercut by increased NIC Employer contributions and thresholds with increased individual employer contributions to businesses, net increase in alcohol duty and overarching workforce increases, although rightly intended to support the workforce, will have severe repercussions for already struggling businesses across the sector,” he added.

Meanwhile, the Association of Independent Music (AIM) has commended “the government’s actions to extend business rates reliefs for the hospitality sector” in a press statement but argued that “much more support” is needed to “alleviate the pressures on already super-squeezed independent labels and related music businesses”.

“We urgently need a tax credit scheme for music creation, like that which has been so successful in supporting the UK film sector,” said interim AIM CEO Gee Davy. “This would drive growth in music communities across the length and breadth of the UK, keep options open for a diverse range of musicians, grow employment and investment in emerging music, and reinvigorate the UK’s position in the global music market.”

The MVT said over 350 grassroots music venues are now under “immediate risk of closure,” putting forward three solutions that include a temporary business rate levy of 50 pence applied to every ticket sold. 

“Music Venue Trust believes that ticket prices for local music events should be kept accessible and is reluctant to encourage venues to adopt option 3,” they wrote. “Unless the government is willing to think again, it unfortunately may be the only possible option to stop a complete collapse of live music in our communities.”

Watch Reeves deliver the UK’s autumn budget (at 39:17) below.

Back in June, MVT published a manifesto entitled ‘A Manifesto for Grassroots Music’, which provided a blueprint for tackling the UK’s diminishing live music sector. A report published in January revealed that over a third of grassroots music venues in the UK are operating at a loss.