Christopher BarrettRepresentatives from across the live music industry have written to HM Treasury calling for it to exempt venues from higher business rates.
LIVE, the National Arenas Association and 14 arenas including Co-Op Live (pictured), Music Venue Trust, and the British Association of Concert Halls have signed a letter to Government requesting an urgent meeting ahead of the 26 November Budget.
The signatories are calling for an exemption for live music venues from the new higher business rates multiplier for properties with a rateable value over £500,000, which they claim will put major pressure on arenas and other live music venues.
LIVE CEO Jon Collins said, “Arenas and music venues already operate on very tight margins and many simply do not have the ability to absorb additional tax pressures. Without an exemption, this tax rise will unfairly penalise arenas and live music venues – holding back growth, increasing costs for consumers, and putting local jobs at risks.”
The letter outlines that every 10,000-capacity show at an arena generates around £1 million of additional spending in the community, and that arenas generate significant tax receipts for Government, including more than £100m in VAT annually from ticket sales and ancillary income sales.
The Government’s new business rates policy to raise business rates for buildings with a rateable value of more than £500,000 and is understood to be primarily targeted at Amazon-style distribution warehouses.