The UK live events industry has issued a stern warning to the Prime Minister, calling for an immediate review of the government’s new business rates system amid fears it will lead to widespread venue closures, job losses and higher ticket prices across the country.
In a strongly worded letter to No 10, senior figures in the sector said the changes presented in the budget – including drastic revaluations by the Valuations Office Agency (VOA) and a higher business rates multiplier for large venues – would have “devastating, unintended consequences” for the cultural industries.
They warned that despite the Budget’s temporary relief measures and lower multipliers for smaller properties, the combined effect of unprecedented valuation increases and higher tax burdens would “undermine many of the government’s own priorities”.
The letter paints a bleak picture for music and entertainment spaces at all levels. Hundreds of grassroots music venues, the launching pads for artists like Ed Sheeran, could be forced to close as rising business taxes make their already fragile finances unsustainable.
“These venues are where artists like Ed Sheeran began their careers,” the signatories wrote. “Their loss would deprive communities of valuable cultural spaces and limit the potential of the UK’s creative sector.”
The warnings cover the UK’s key markets, many of which are facing increases in business rates of more than 100%. Operators say these additional costs will almost certainly be passed on to consumers, driving up ticket prices, at a time when the government has promised to tackle the cost of living crisis.
“Ticket prices for arena shows will increase,” the letter said. “Dramatic tax increases will likely impact consumers.”
Smaller arenas “on the brink”
Medium-sized venues – often the cultural heart of regional cities – are also at risk. The sector fears dramatic jumps in valuations could push many to the brink of closure, leading to thousands of job losses and depriving local communities of vibrant cultural centers that sustain high street life.
“These changes will reduce visitor spending that supports local hotels, bars, restaurants, shops and taxis,” the letter said. “They will erode the cultural spaces that help places thrive.”
The sector says changes are at odds with the government’s growth plans
Industry leaders also accused the government of undermining its industrial strategy and creative sector plan, which explicitly commit to tackling barriers to the growth of live events. Instead, they argue, the new business rates system risks strangling one of Britain’s most dynamic export industries.
The sector is demanding 40% interest relief and urgent valuation reform
The letter calls on ministers to take two immediate actions:
• Introducing a 40% discount on business rates for all live venues.
Film studios have already been granted these reliefs until 2034, and the live events industry argues that venues – also classified as “critical creative infrastructure” – deserve the same protection.
• Launch a rapid investigation into VOA performance venue rating methods, which operators say are “disproportionate, inappropriate and unjustified.”
Finally, the industry has requested an urgent round of talks with the UK Treasury, the Department for Culture, Media and Sport and the Department for Business and Trade to develop a plan to “save our venues” before closures begin.
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If you would like a follow-up commentary, sector analysis or Daily Sparkz-style opinion column on the wider economic impact of venue closures and rising ticket prices, I can prepare that next.
