Following Chancellor Rishi Sunak’s summer statement, Culture Secretary Oliver Dowden tweeted that the VAT rate cut from 20% to 5% will include concerts, however music industry organisation are calling for further Government support.
The lower rate will be applicable from 15 July to 12 January 2021.
Said Dowden, “Pleased to confirm VAT cut from 20% to 5% for ‘attractions’ announced by @RishiSunak includes shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas and exhibitions. We will announce further steps on path to reopening shortly”.
Night-Time Industries Association CEO Michael Kill said the announced measures are not enough: “Most of our members either can’t open at all due to social distancing or can only open with reduced capacity resulting in more financial losses. It’s as if the Government are letting us slip through the cracks between the various well-intentioned schemes. A VAT cut when you just can’t open at all is not of any help.”
UK Music Acting CEO Tom Kiehl said, “As the #LetTheMusicPlay campaign has shown, there is massive support for our world-leading music industry, which sustains 190,000 jobs and contributes £5.2 billion to the UK economy. But we urgently need more Government support until the music business can get back fully on its feet.”