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Live Nation Regent Arcade House, 19-25 Argyll Street, London, W1F 7TS

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Live Nation Regent Arcade House, 19-25 Argyll Street, London, W1F 7TS Live Nation Regent Arcade House, 19-25 Argyll Street, London, W1F 7TS David Gauke MP Financial Secretary to the Treasury HM Treasury 1 Horse Guards Road London SW1A 2HQ Dear Minister, BUSINESS RATES FOR FESTIVALS AND PUBLIC EVENTS This letter is submitted on behalf of a number of organisations and individuals with an interest in the live entertainment industry, encompassing festival organisers, public interest event organisers and site-owners and other parties with a rural interest. Following the recent announcements by the Chancellor and the Chief Secretary to the Treasury of a root and branch review of national non-domestic rates (business rates) we are writing to bring to your attention several concerns we have about the status of festival sites and other public events within the business rates regime. We believe current uncertainty has the potential to undermine the contribution which festivals make to the UK’s local, rural and cultural economy. You may be aware that the Valuation Office Agency (VOA) is currently conducting a review of business rates for festival sites. As a result, we are seeing land which has previously been outside the business rates regime, on the grounds of its status as agricultural land, now being reassessed as rateable, and have seen a number of instances where site-owners are receiving bills backdated as far as five years. We are writing to ask that this review be the subject of an immediate pause in order to allow time for a thorough policy discussion. While we have been engaging with the VOA, it appears to have already taken a fixed position on this issue, which we believe should be a matter for ministers given its far-reaching implications for an industry which is a major contributor to the UK economy. As the Minister responsible we feel it is essential that you have the opportunity duly to scrutinise how this may impact the festival industry, the rural economy and the economic contribution our sector makes to the UK. Festivals and events bring significant economic benefits both to rural areas and to the UK, which cannot be excluded from this discussion. UK Music identified in 2013 that 6.5 million music-loving tourists attended a festival or gig, generating £2.2 billion spending in the process. Culture Minister Ed Vaizey identified at the time that “the huge financial contribution to the UK economy by the millions of music tourists to the UK annually makes it very clear that when combined, the music and tourism industries are powerful drivers for growth”. Attendees at public events and the supporting industries related to heritage and rural endeavours generated a very similar amount of money, a substantial part of which is gifted to charities and rural communities. The Government has also undertaken to support the rural economy, including through the Rural Development Programme for England (RDPE), with measures to support farm competitiveness and support growth in high-potential sectors, including tourism. At a time when farmers are struggling to compete and achieve financial viability, events and festivals are an essential part of diversifying agricultural land use and generating supplementary income. Festivals and other public events also support local services directly via the Single Payment Scheme and payments to public bodies. The emerging practice of the VOA is likely to put many music festivals and other events in jeopardy. Two matters are of particular concern. First, there is the question of whether festival sites should be rateable at all. We do not consider they should, as they are essentially temporary uses of agricultural land. We understand that the VOA has taken Glastonbury Festival as an example to lead its review. However, Glastonbury is a designated festival site for the whole year round, meaning that it is a singular exception within the events industry and cannot be used as a representative example for the majority of festivals. There is of course considerable variation in the size and duration of festivals, with many being 5,000 licensed capacity or less. Second, the backdated billing in particular appears to us to be entirely arbitrary and contrary to basic principles of fairness and transparency. Organisers and site owners for smaller and mid-tier festivals and events will be particularly adversely affected by the receipt of large backdated bills, which are unplanned, to the extent that this could threaten their viability. These bills can often be backdated to 2010, and site-owners and event organisers have had no opportunity to make any provision for the backdated liability now being presented to them. Such is the concern of Live Nation, a major events organiser and signatory to this letter, about the recent backdated bill received with regard to its Creamfields festival site, that it is currently pursuing a legal appeal on behalf of the site-owner. On behalf of the festivals industry, Live Nation intends to make this a test case for the application of business rates across all sites in question. More generally, the festival industry as a whole is prepared to challenge both the practice of entering festival sites in local rating lists, and the issue of unfair backdated rates bills. However, we would hope that rather than the situation resulting in multiple challenges we could resolve the issue constructively in discussion with HMT and the VOA. The former approach of the VOA and local authorities - that festivals are not subject to business rates - has helped create the conditions for festivals to thrive as a success story for the British economy. Conversely, this change in approach by the VOA has created significant uncertainty and concern among site owners in rural areas. In summary, the piecemeal approach being undertaken by the VOA, where parts of the festival industry are being made subject to business rates, without any clear rationale, has far-reaching consequences for an industry which is a significant contributor to the UK’s rural and creative economies. We believe there should be a strategic conversation at ministerial level of how best to use business rates as a lever to foster the future success of the festival sector for the UK economy, and that the business rates review is the appropriate place for this conversation. We do of course intend to participate fully in the forthcoming review. However, as you will be aware, we are now approaching festival season where this will be an important public issue and event organisers are looking for certainty and consistency about their future status. We would like to request a meeting with you as soon as possible to discuss this important issue. In addition, we would ask that you instruct the VOA to place its review of events sites on hold until this meeting can take place. Yours sincerely, Stuart Littlewood Concert Promoters Association Barry Clayman OBE Live Nation (Music) UK Ltd Paul Reed Association of Independent Festivals (AIF) Jim Mawdsley Association of Independent Festivals (AIF) Steve Heap Association of Festival Organisers (AFO) Jim Winship The Event Services Association John Smith Musicians Union Chris York SJM Concerts Luke Flynn AEG Live Andy Grove Local Authority Event Organisers Group (LAEOG) Susan Tanner National Outdoor Events Association UK Music Live Music Group Greg Parmley International Live Music Conference (ILMC) Stuart Galbraith Kilimanjaro Live Caroline Giddings Isle of Wight Festival John Giddings Isle of Wight Festival Dave Steele Isle of Wight Festival Fiona Bewers The Caravan Club Jon Webster Music Managers Forum Mark Davyd Music Venues Trust Bob Angus Metropolis Music Rob Da Bank Bestival/Camp Bestival Harvey Goldsmith Artist Promotion Management Barney Vernon The Gig Cartel Andrew Wilkinson The Jockey Club Live Andrew Pountain Industry Music Group Ltd Bernard Donoghue The Association of Leading Visitor Attractions Michael Hirst Business Visits and Events Partnership Nick Way Historic Houses Association Andy Lenthall Production Services Association Mark Harding Showsec Nick Mosley Brighton & Hove Food and Drink Festival CIC John Roston Swn Festival Andy Lenthall Production Services Association (PSA) Anton Lockwood DHP Family Geoff Ellis D.F. Concerts Fiona Stewart Green Man Festival Rob Hallett Robomagic Live Anthony Findlay Raymond Gubbay Ltd Dennis Arnold 3A Entertainment Ltd Albie Park Beat Up Music David Heartfield Impresario Festivals Paul Roberts Phil McIntyre Entertainment Barrie Marshall Marshall Arts James Scarlett ArcTanGent Simon Maltas 2000 Trees Joshua Sanger Barn On The Farm Nick Chambers Beat-Herder Festival Joe Gibbs Belladrum Tartan Heart Paul Bliss Blissfields Pablo Janczur Brecon Jazz Adam Brown Brownstock Hugh Phillimore Cornbury Festival Oliver Jones Deer Shed Festival John Empson Eden Sessions Philip Wicks End of the Road Festival Peter Davies Eisteddfod Genedlaethol Cymru Oscar Thornton Farr Festival Nicholas Crow Fling Festival Andy Bell Festibelly Joe Buirski Fire in the Mountain Nick Tanner Glastonbudget Katherine Goodenough Greenbelt Festival Caroline Maclennan Hebridean Celtic Festival Andy Smith Kendal Calling Chris Tofu London Remixed Festival Jim King Loud Sound Jane Beese Meltdown / Southbank Centre Peter Nosworthy Nozstock Festival Ali McLean No Tomorrow Festival / DHP Family Martin Laws Pangaea Rob Dumas Pete The Monkey Scott Witters Rhythm & Vines Sidharth Sharma Shambala Freddie Fellowes Secret Garden Party Kate Hewett Tramlines Ralph Broadbent Count of Ten (Truck / Y Not Festivals) Sean McLoughlin Village Green Reece Miller We Are FSTVL Abbie Carter-Burrows
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