Denmark culture minister Joy Mogensen said she is overseeing the creation of a kr530m (£61m) cancelation compensation fund for festival organisers, with the aim of encouraging them to press ahead with their events this summer.

It follows similar steps by Germany, with a €2.5bn (£2,14bn) fund, and schemes by Norway (€34m/£28.12), The Netherlands (€300m/£257m), Austria (€300m/£257m) and in Belgium (€60m/€51.4m).

The scheme will compensate for all fixed costs and salaries incurred by organisers of festivals staged up to the end September, with capacities of more than 350, if it proves necessary to cancel, postpone or significantly change the events.

Mogensen said, “We all hope for a summer where the infection situation allows us to gather for festivals again. Until then, the festival organisers can continue to plan soundly with peace of mind. With the agreement, we ensure that festivals will be compensated if they have to cancel due to restrictions.”

In the UK live music industry umbrella group LIVE (Live music Industry Venues & Entertainment), is among the organisations lobbying Government to support the outdoor events industry with an insurance scheme. It is understood talks are being led by Live Nation executive vice president, touring Europe, Phil Bowdery.

Following the chancellor’s 3 March Budget, executives from across the industry aired frustration that an insurance scheme was not included.

Association of Independent Festival research has shown 92.5% of its members cannot stage their events without an insurance scheme.