Striking a New Chord: Labour’s Pledge to Revitalize the UK Music Industry Amidst Economic Challenges

"Government thinks we're not serious" – what can Labour do to bolster the music industry?

Amid increasing expenses, the closure of venues, and a perceived disconnect with government officials, industry insiders share their expectations for support from the newly elected party.

Politics correspondent @NifS

Thursday, September 5, 2024, 5:

The music scene has been the center of attention this week following a frenzied rush for Oasis concert tickets, which led to a significant spike in their cost.

The Labour Party has committed to examining dynamic pricing through a consultation aimed at developing a more equitable system, with a vow to "recenter music fans."

However, industry stakeholders are optimistic that the incoming administration will show greater engagement with a sector that, as reported by UK Music, adds £6.7 billion to the economy and provides jobs for over 210,000 individuals.

We discuss with various industry leaders the obstacles they encounter and their expectations now that Labour has taken office.

"Festivals struggle to break even"

Rachael Greenfield serves as the festival director for Bloodstock, a family-operated rock and metal festival held annually in Derbyshire, which attracts about 20,000 attendees each summer.

As a smaller, standalone event compared to major festivals like Glastonbury, it has faced greater challenges from various problems affecting the broader music sector.

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"Organizing a festival is invariably a significant undertaking because understanding your audience is crucial… and securing an appropriate lineup for any event is quite difficult," she mentioned.

"However, the arrival of 2020 brought its own difficulties. The impending Brexit, although anticipated, posed unique challenges, particularly for bands entering the UK. The country has become less appealing for touring compared to other European destinations, subsequently raising the expenses involved in booking bands that are highly sought after for performances."

"Then the pandemic hit, devastating the entire events industry. Numerous festivals were canceled, and we barely managed to survive."

Rachel commended the former administration's Cultural Recovery Fund for its role during the pandemic, noting that it was crucial in keeping the event afloat. However, she emphasized that while it helped them survive the toughest period, a full recovery would likely take another five years at minimum.

In collaboration with the Association of Independent Festivals, Bloodstock is urging the government to implement a 5% VAT reduction on ticket sales for three years. This request aims to provide the necessary financial relief to stabilize the industry and prevent the frequent collapse of festivals struggling to stay financially viable.

Rachel notes, "With the increasing number of festivals failing, ticket vendors are growing anxious and are now holding onto all the revenue from ticket sales until after the festivals have concluded."

"If you're a large-scale corporate event, handling finances might not be as challenging. However, for smaller, independent festivals, where up to 70% of all operational costs are paid upfront, there's a heavy reliance on incoming funds or a portion of them to sustain operations throughout the year.

"Without any revenue from ticket sales, and after enduring two years of significant financial losses, there comes a point when you have to admit that continuing is no longer feasible."

'Everyone is struggling with increasing rates'

Music venues nationwide, particularly smaller, foundational ones where all musicians begin their careers, are increasingly facing challenges.

The Music Venue Trust (MVT) reported that an average of two music venues closed each week in 2023, totaling 125 closures throughout the year.

Of the businesses that continued operating, 38% indicated they experienced financial losses.

Ali and Matt Barnwell, who run The Fighting Cocks, a live music spot in Kingston-Upon-Thames, find themselves grappling with financial challenges.

"Essentially, it's about generating sufficient revenue to cover expenses," explains Matt, focusing on financial viability for the MVT. "This hinges on labor costs and entertainment expenses, which are typically fixed and thus impact smaller establishments like ours more significantly."

"Expanding the pub aspect of the business is simpler and more adaptable depending on customer flow, yet entering the live music segment faces significantly greater challenges."

His main concern when approaching the government is to prevent any further increases in business rates.

"No one can handle the costs if they rise again," he continued. "Additionally, there should be more readily available grants and funding to help manage venues and foster industry growth."

Ali mentioned that the broader economic difficulties are severely impacting them, and that increasing assistance for concert attendees domestically could also benefit the entire industry.

She noted, "There's been a decline in attendance at live performances generally, and convincing people to purchase tickets beforehand has become significantly tougher than before."

"There has been an increase in the number of people failing to attend concerts. It appears that individuals are hesitant to make advance commitments or adhere to them once made."

'No one jumps straight from their bedroom to performing at Wembley'

Sarah Pearson, who helped establish the Beyond The Music festival and conference, refers to it as a "democratic version of Davos for the music industry." She believes that the UK's music sector is overly dominated by major players, which negatively impacts individuals like Ali and Mat.

"The economy is expanding for a select few at the top, but it's failing to serve the majority," she stated. "This requires immediate solutions, yet there appears to be a lack of urgency."

For instance, musicians with recording contracts or those aiming to enhance their skills and expand their fame are left without performance spaces due to the shutdown of small, local music venues.

"Additionally, performances are less frequent because the expenses have risen, forcing promoters to only organize events that are guaranteed to draw a crowd."

"In fact, as you develop, it's essential to perform for small groups, like five or six individuals, to improve and expand your following."

Explore further: Examining the UK's music festival dilemma. What's behind the surge in concert ticket costs? 'Suddenly, every obstacle imaginable appeared.'

Ali from The Fighting Cocks emphasizes, "It's about recognizing the importance of small local venues within the broader music landscape."

The Trust dedicated to Music Venues has effectively highlighted the crucial role venues like ours play in pioneering innovation within the broader industry.

"No one jumps straight from their bedroom to performing at Wembley Stadium. At the highest levels, there's a massive financial landscape, yet there's so little financial support available for those of us who gamble on a band's debut performance."

Sarah from Beyond The Music notes that there is a widespread appeal within the industry for major music corporations to increase their investments in grassroots initiatives, which should then be complemented by governmental matching funds.

"She explained that it would mimic the Football Foundation model, where Premier League teams fund community-level initiatives, suggesting a similar approach could be applied to music."

"We might develop an expansion strategy that genuinely inspires the grassroots community, benefiting those who rightfully make substantial earnings from music."

"Britain's gift to the globe is its music"

UK singer-songwriter Frank Turner, known for his punk and folk music, has been a staunch advocate for small music venues, believing they are crucial for the growth and sustainability of the music scene in Britain

However, he is also advocating for additional support for the artists.

He shared with Sky News, "As a child, I developed a passion for rock music, specifically Iron Maiden, and I knew right away I wanted to be a part of it. Figuring out how to turn that into a viable career took a while, and punk rock, especially Black Flag, guided me, but the initial impulse was always there."

"Earning a living has become challenging. Profits from recorded music have drastically decreased over the past two decades, and they continue to diminish from touring as well."

For Turner, pursuing a career in performance also involved considerable physical and mental stress.

"He emphasizes the difficulty," he says. "Being on tour is challenging, constantly innovating is demanding, and social media only exacerbates these issues. Although there are more support systems within the industry today, it remains a significant struggle."

Nonetheless, he highlights various hurdles, including escalating expenses and Brexit effects, and he is calling for a change in how government officials perceive the music industry.

"He noted that the music sector has consistently been a major and reliable source of employment and a significant contributor to the treasury, not to mention its immense cultural value."

For many years, the industry has been somewhat dismissed and not taken as seriously as sectors like the automotive or agricultural industries. Yet, in truth, British music has stood out as one of the nation's most significant global contributions, both economically and culturally, for several generations.

"I believe we are beginning to see a change. I feel more optimistic about our current administration compared to the ones before, though there is still progress to be made."

"Let us prosper"

Fiona Stewart, who runs the Green Man festival in Wales and also owns it, shared Turner's worries, noting that the main obstacle for her sector was the government's insufficient comprehension of the issues faced.

She argued, "Britain no longer holds the same economic clout and productive capacity it used to have. It might actually be beneficial for us to recognize the current state of the country—an island nation with an outstanding creative sector, among other dynamic industries, that is both nimble and modern, capable of both production and inspiration."

Fiona stated, "Given the current divisions… elements such as music can unite us, which is essential. It possesses a strength, and it would be beneficial for the new administration to acknowledge this in a more deliberate manner.

"What we require is a strategy. It's not merely about significant financial injections or grand declarations. We need a well-thought-out plan that spans several years, with timely and appropriate investments, just as any savvy businessperson would implement.

"Enhancing the industry's reputation would allow us to prosper in our areas of strength."

A representative from the government stated: "The music sector is a significant asset to the nation, contributing greatly to our national identity and economic prosperity. We are fully dedicated to ensuring the growth and success of this industry, including our festivals and essential grassroots music venues. The ministers are evaluating various policy alternatives."

"In line with our forward-looking objectives, we aim to encourage the industry to intensify their efforts in forging career paths for individuals from varied backgrounds. This taps into the vast pool of skills available nationwide and propels economic development within our local areas."

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