An Open Letter To The UK Government

Dear Prime Minister,

We are writing on behalf of the live events sector to urge you to review the devastating, unintended consequences for live venues of changes announced to the Business Rates system at the Budget.

The combined impact of disproportionate, inappropriate, and unjustified rises in the Valuations Office Agency’s valuation of properties, and an increased Business Rates multiplier for large event venues, will undermine many of this Government’s own priorities. The resulting tax increase for operators completely outweighs any benefits of the transitional relief and lower tax multipliers for lower value properties announced, and will significantly worsen in the years ahead.

The effects on our sector are chilling:

• Hundreds of Grassroots Music Venues will close in the coming years as revaluations drive costs up. This will deprive communities of valuable cultural spaces and limit the UK creative sector’s potential. These venues are where artists like Ed Sheeran began their career.
• Ticket prices for consumers attending arena shows will increase as the dramatic rise in arena’s tax costs will likely trickle through to ticket prices, undermining the Government’s own efforts to combat the cost-of- living crisis. Many of these arenas are seeing 100%+ increases in their Business Rates liability.
• Smaller arenas in towns and cities across the UK will teeter on the edge of closure, potentially resulting in thousands of jobs losses and hollowing out the cultural spaces that keep places thriving.
• The Government will undermine its own Industrial Strategy and Creative Sector Plan which committed to reducing barriers to growth for live events.

Events in our venues sustain high streets across the UK by bringing visitors willing to spend money in hotels, bars, restaurants, shops, and taxis and other businesses. These changes will reduce the high-street spending that supports local businesses and sustains jobs.

We are certain that Government does not intend these catastrophic consequences and are calling on it to quickly implement:

1. Immediate 40% Business Rates Relief for our venues: film studios have been granted a guaranteed 40% relief until 2034, recognising them as critical creative infrastructure. Live venues should receive the same 40% relief.
2. Fundamental reform of the valuation system: establish a rapid inquiry into the Valuation Office Agency’s valuation methods for event spaces.

We are requesting an urgent industry roundtable with Ministers and officials from HM Treasury, the Department for Culture, Media, and Sport, and the Department for Business and Trade to discuss how Government can act quickly to save our venues.

Yours sincerely,