The UK music industry contributed a record £7.6 billion to the UK economy in 2023 but significant challenges mean it has reached a tipping point, according to music industry representative body UK Music.

Figures revealed in UK’s Music annual economic report, This Is Music 2024, show that while the music industry appears to be thriving in the UK, urgent government support is needed to ensure its huge economic contribution is sustained.

The UK music industry’s £7.6bn economic contribution in 2023 was up 13% from £6.7 billion in 2022, while UK music exports revenue in 2023 hit a new high of £4.6bn, up 15% from £4bn in 2022. Total UK music industry employment in 2023 also hit a record high, with 216,000 (full-time equivalent posts), up 3% from 210,000 in 2022.

While acknowledging it was a stellar year for live music with major festivals selling well and artists such as Beyonce, Burna Boy, Blur and Ed Sheeran among the many acts to play major UK shows, while exports received a boost from international touring by British artists, UK Music’s report also highlights the ongoing impact of Brexit on UK artists touring in Europe, Music Venue Trust’s finding that around 125 grassroots music venues across the country closed last year, and Association of Independent Festivals research showing that an estimated 192 festivals have disappeared since 2019.

UK Music’s chief executive Tom Kiehl welcomed the figures in This Is Music 2024 as evidence the music industry is ideally placed to turbo charge the new UK government’s mission to secure the highest sustained growth in the G7 but he said it is not a time to be complacent: “This is Music 2024 tells the story, based on real evidence and data from across the sector, that despite some very strong headline figures in 2023, the UK music industry has vulnerabilities too.

“Increasing global competition, tough financial conditions for artists and the grassroots, as well as the wild west that is generative Artificial Intelligence (AI), are all conspiring to be significant challenges for the sector.

“We are now at a tipping point, and if the problems we face are not addressed then future growth cannot be guaranteed.”

Kiehl highlighted four key areas where urgent action was needed to help the UK’s music sector grow in an increasingly competitive global market:

  1. Promote changes to the law that safeguard against unregulated AI, and reject proposals that fail to achieve this.
  2. Ensure every child and young person across the UK has access to free music making.
  3. Introduce a cap on secondary ticket resale prices.
  4. Fight for visa-free touring for musicians and crew.

In response to the report’s findings, Secretary of State for Culture, Media and Sport Lisa Nandy said, “From global superstars like Harry Styles and Adele, internationally-renowned festivals like Glastonbury and Parklife and a huge range of vibrant subcultures, the music industry is a real British success story. These impressive new figures underline how vitally important it is to driving growth – as it boosted its value to our economy by nearly a billion pounds in one year.

“I am committed to ensuring that the government works with industry to build upon its current success in the years to come. By supporting vital grassroots venues, introducing new secondary ticketing protections for fans and ensuring all children can access high quality music education in schools, we can help the sector go from strength to strength in the future.”

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