LIVE responds to Chancellors Spring Statement23.03.2022.
Today the Chancellor set out his Spring statement. You can read the full announcement and detail of the measures here.
In response to today’s announcement LIVE has released the followed statement:
LIVE has consistently called for urgent financial support since the start of the pandemic, and in light of the new challenges being faced by the sector this is even more important.
LIVE has made it clear to the government that the single most effective way to direct cash into the bottom line of struggling companies would be to:
- Defer increase of VAT rate on ticket sales due to take place in March 2022.
- LIVE is calling for the Government to work with the industry to consider a cultural VAT rate of 5% on ticket sales.
- Restructure of the Government’s reinsurance scheme
- LIVE is calling for a restructure of the government’s reinsurance scheme to allow for artist cancellation due to Covid-19 to be covered.
AIF CEO Paul Reed:
“We are disappointed that the Chancellor has not responded to our repeated calls to grant an extension to the 12.5% VAT rate on festival tickets beyond the end of March. Festival organisers are experiencing cost increases of between 20-30%, which is way beyond rapidly rising inflation, with extreme pressure along the entire supply chain. We urge the Government to look at this again and maintain the reduced rate on VAT.
“We also ask the Government to urgently reconsider the removal of tax incentives to use certain biofuels. These should be maintained at the current rate as a transitional measure to encourage use of greener fuels at festivals. To do otherwise is completely contrary to the Government’s objectives of incentivising energy efficiency and reducing emissions.”
CEO Music Venue Trust, Mark Davyd:
“Music Venue Trust warmly welcomes the Business Rates discount, which will maintain the 50% Business Rates for grassroots music venues that the government announced pre-pandemic. With no action for businesses on energy bills, NI liability and the missed opportunity of action on VAT that would support the sector to recover from the Covid crisis, the outcome of the budget is that none of the extraordinary financial pressures being placed on venues have been mitigated or alleviated.
“This budget has failed to respond to inflationary increases from rent, supplies, and services running in excess of 20% across the sector. The government has recommitted itself to supporting business investment, especially research and development. We again ask that the Secretary of State for Culture should enter into meaningful discussions with the live music industry to create R&D tax incentives and direct financial support to achieve that outcome.”