Christopher BarrettThe importance of UK music festivals to the UK economy has been emphasised numerous times in recent weeks, Glastonbury alone generates £100 million a year for local businesses and charities, and the sector supports 85,000 jobs, yet the Government’s outdoor events guidance does little to reassure event owners planning their 2021 editions.
“Even if it is possible, logistically, to operate under those guidelines, most festivals operate on such tight margins that operating with a reduced capacity is not viable. The overwhelming majority of festivals will not be able to go ahead as social distancing of 1 metre is incredibly difficult to implement in the festival environment,” says Reed.
“It is a positive piece of work looking at how we can have a safe and viable season next year because a second year of this would decimate the festival industry.”
While Reed does not expect it to be published imminently, he says the AIF is working with the DCMS to develop festival-specific guidance: “We have agreed an outline for it. We are working to get a framework of how it can be approached and what the starting points are for local authorities and safety advisory groups. It is a positive piece of work looking at how we can have a safe and viable season next year because a second year of this would decimate the festival industry.”
In the shorter term, the challenge for many festival operators is getting through the next few months without their businesses collapsing. AIF research shows that, on average, its members have £375,000 of non-recoupable costs this year, and 98.5% of them did not have cancelation insurance covering Covid-19.
“Many of them are able to give me a realistic insolvency date, should there be no further financial support from the government,” says Reed.
Having called for clarity on the festival sector’s eligibility for the Government’s £1.57 billion support package, Reed says the DCMS has assured him that festivals have not been ruled out of the emergency package.
“Considering that UK festivals generate £1.75 billion, in terms of return on investment it is not a vast amount to ask of government,” says Reed.
The AIF is calling for £31m of urgent government assistance for the sector.
The figure is based on research carried out by Media Insight Consulting on behalf of UK Live Group, taking into account data from the AIF, the Association of Festival Operators and the Concert Promotors Association.
“Considering that UK festivals generate £1.75 billion, in terms of return on investment it is not a vast amount to ask of government,” says Reed.
“No one expects the government to fund the festival sector and cover all overheads until next year, the £31m would be channeled to event operators that do not have the reserves to get through to next year.
“The next step is about determining which festivals are in immediate need and ensuring we get government funding to support them.”