Let the Music Play Save Our Summer 2021

LET THE MUSIC PLAY: SAVE OUR SUMMER

JANUARY 2021 contents foreword Chief Executive | Jamie Njoku-Goodwin 4 executive summary 6 importance of live music 9 impact of COVID-19 and challenges faced by live music events 14 recovery How to get the Sector Back on its Feet 17 How to get the Sector Back on its Feet | Managing Health Risks 18 How to get the Sector Back on its Feet | Managing Economic Risks 24 conclusion 30 acknowledgements 31

UK Music is the umbrella body representing the collective interests of the UK’s music industry, from songwriters and composers to artists and musicians, studio producers, professional recording studios, music managers, music publishers, major and independent record labels, music licensing companies and the live music sector. UK Music exists to represent the UK’s music sector, to drive economic growth and promote Queen Zee at Download 2019 | Georgia Penny © the benefits of music to British society contents foreword Chief Executive | Jamie Njoku-Goodwin 4 executive summary 6 importance of live music 9 impact of COVID-19 and challenges faced by live music events 14 recovery How to get the Sector Back on its Feet 17 How to get the Sector Back on its Feet | Managing Health Risks 18 How to get the Sector Back on its Feet | Managing Economic Risks 24 conclusion 30 acknowledgements 31

Live music is the beating heart of therefore it is in the national interest cannot assume that pandemics are a speak openly about the prospect of the UK music industry. It generates for the sector to be supported and once-in-a-century phenomenon. We returning to normal by the spring, billions of pounds for the economy helped back to normal. To that end, don’t know when the next pandemic and the combination of vaccines and every year, supports thousands of we put forward a clear plan for will strike, but as an industry we are rapid testing gives hope that we will jobs across the country, and draws recovery: what we need to do to get determined to be ready for it when be in a position to hold large-scale millions of music tourists to all four the live music sector back up on its it does, and be one of the safest events by the middle of this year. corners of the UK. feet again in 2021. environments for social contact. Summer might seem a long way off, In addition to the economic impact, Before the vaccine is fully rolled out, Getting our sector back on its feet especially when we are in the midst it also has huge social and cultural there will remain a public health is not just about mitigating the of a second wave of Covid-19. But we benefits. The UK’s vibrant live risk. Therefore, one of our main public health risk. COVID-19 has had operate to long lead times as a sector music scene has given us a global tasks as an industry has been to do devastating economic consequences and now is when the key decisions reputation, and the music industry everything we can to reduce the risk too, with huge ramifications on about the summer music season are as a whole was set to be one of the of transmission in our environments cost, confidence and certainty. An being taken. British success stories of the 2020s. and make event spaces as safe indicative date for restart and a When the time for recovery comes, COVID-19 has put much of that as they can possibly be. We are government insurance scheme are the music industry can play a key at risk. The pandemic has had a working with government to develop vital – without them, many major role in the post-pandemic economic devasting impact across our industry, guidance for how to hold events festivals will not have the confidence and cultural revival. But if the right and live music has been one of the safely, and engaging with testing or the preparation time to go support and reassurance is not put in biggest casualties. However, as we pilots to make sure infections are ahead this year. Policies like the place for event organisers, artists and argue in this report, the devastation not brought into live music events. business rates relief and the VAT rate venues now, then there is a serious caused by COVID-19 does not have We looking at new ventilation and reduction on tickets have been very risk that much of the summer live to be permanent. We were a growing air purification systems that would welcome this year, and should be music season will be cancelled. dramatically reduce the risk of extended for their full benefit to be and thriving industry before the Countries like Germany and Austria transmission. And we are proposing realised. And if we are not allowed to pandemic hit, and with the right have taken action to protect their an enhancement to Hands, Face, operate viably as sector, then there support we can be that successful events industries and ensure they are Space, which puts responsibility for will be no option for Government but and self-reliant industry again. ready to help drive their recoveries making environments safe onto to extend the Cultural Recovery Fund In this report, UK Music highlights – it’s vital that the UK does the same venues rather than individuals. and continue the various support the vital role live music plays in our and is not left behind. This report schemes like furlough and SEISS. communities and lays out the stark This work is not just important for makes the case for action from challenges it has faced over the tackling the risks from COVID-19 – it While this pandemic is still raging Government now, and sets out a course of the pandemic. We argue is a blueprint for how the live events and causing devastation to lives blueprint for how we can Save Our that the music industry will have a sector can operate safely and viably and livelihoods today, the rollout Summer. key role to play in the post-pandemic through future epidemics too. In our of the vaccine means there is light economic and cultural recovery, and increasingly globalised world, we at the end of the tunnel. Ministers

4 5 foreword Chief Executive | Jamie Njoku-Goodwin

4 5 executive summary

Importance of live music Impact of COVID-19 and an existential crisis for the live sector and UK music festivals – the 2020 Live music is a vital part of the UK’s challenges faced by live season was wiped out, and there is £5.8 billion music industry – music music events a real threat that the vast majority tourism alone contributed £4.7 of the 2021 season will not happen billion to the UK economy in 2019.1 Pandemic restrictions have either. According to UK Music’s Music By significantly impacted the live Numbers 20202 report live music music sector. Bans on mass events contributed £1.3 billion directly to and the national lockdown meant Recovery – how to get the the economy in 2019.The economic that the 2020 festival season was sector back on its feet wiped out. This has resulted in a benefits of live music are spread The best way to support and protect 90.2% drop in revenue for festivals across the whole of the UK and the live music sector is to get it back in 2020, with potentially 50% they are vital to supporting local on its feet and enable it to start redundancies in the workforce by the economies and regional growth. Live generating income again. The focus end of the year.3 Grassroots Music music attendance grew in 2019 and must therefore be on how we get Venues (GMVs) have seen a 75.2% given jobs in the cultural and creative live performances happening again fall in income with redundancies industries will be particularly resilient at capacity. This means we must first of 60.4% of the workforce being to automation, the long-term demonstrate that we can effectively looked at.4 The impact has been employment prospects for the sector manage the health risk by taking felt across the industry – up to before COVID-19 hit looked bright. necessary measures to reduce the 80% of music creators’ income will The UK live music scene also brings risk of transmission at live music have been lost in 2020 and three significant social and health and events, and secondly find a way to quarters of musicians may leave the wellbeing benefits and generates operate in the current landscape in a sector. The prospects of holding huge soft power advantages. UK way that is financially viable. live music should be promoted and live events in 2021 are extremely Until a vaccine is fully rolled out, championed by Government in unclear. Social distancing, capacity measures must be taken to manage normal times, and protected and limits, and restrictions under the the public health risk. The music supported during this pandemic. tiered systems all mean that it is an immense challenge to hold events in industry has therefore been looking an economically viable way. There is at all options to reduce the risk of no certainty about when restrictions transmission: might end and so there is little • We are working closely with confidence to plan and organise government to develop guidance major events. COVID-19 has created and clear protocols to enable live

1 https://www.ukmusic.org/research/music-by-numbers-2020 2 https://www.ukmusic.org/research/music-by-numbers-2020 3 AIF figures https://committees.parliament.uk/writtenevidence/6583/html/ 4 https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf p. 6 6 7 executive summary

music events to return safely, and on multiple options to manage • Targeted financial support. will continue this collaboration as a the public health risk. However, • Extension to the VAT rate priority. there is no clear mechanism for reduction on tickets. validating these various approaches • UK Music is committed to engaging with Government. We therefore • Rollover of the paid 2020 Local with the Moonshot programme and recommend establishing a taskforce Authority license fees using rapid testing to eventually that can advise, evaluate and bring back full capacity events. • Extension to business rates relief. validate the various innovations This requires proof of concept, we are looking at implementing. conducting testing pilots with This has been very effective for Conclusion social distancing, then gradually the sports sector, with the Sports Live music plays a key role in the building up to full capacity. Technology and Innovation Group. social, economic and cultural life • We are looking at and piloting We recommend Government does of the UK. The sector has faced improved ventilation and other the same for the live performing arts unprecedented challenges during pathogen reduction systems. There sector. the pandemic, but there is a route are a number of ventilation and air We are confident that through for live music to return to delivering purification systems on the market partnership with Government and the huge benefits for our country that reduce the risk of transmission the private sector we can effectively that it has consistently generated in inside spaces, but unless they manage the public health risks in the past. The music industry are recognised or validated by at festivals and live music events is committed to working with Government then there is no and make them safe places to Government and the private sector incentive for industry to invest in be. However, there will remain to get the live sector back up on its them. significant challenges for the industry feet – by taking necessary measures to reduce the risk of transmission, • For indoor events, the industry is as it seeks to get itself up onto its and securing the right support from also proposing an enhancement to own feet. To support the live sector, Government to enable festivals to the Hands, Face, Space approach: UK Music has a set of key asks of return in an economically viable way. Test, Clean, Prevent, which Government: switches the management of the With the right support, live music and • An indicative date for full capacity the wider music industry can be at risk of COVID-19 from individuals restart. onto venues which already have the the forefront of the post-pandemic expertise. • A Government-backed economic and cultural revival. reinsurance scheme. As an industry, we are working

Live music plays a vital role in the deals with them, will often discover a 6% increase in attendees with 5.2 UK’s £5.8 billion music industry – unsigned talent at live events such as million people in 2019, up from 4.9 music tourism alone generated festivals or open mic nights. million in 2018. Revenues will vary £4.7 billion in spending for the UK Music’s recently released Music By from one event to another, but UK economy in 2019 and live Numbers 2020 report demonstrates typically festivals with an attendance performance forms an important the economic value of the UK of 80-100,000 can generate in the part of the wider music ecosystem. music industry, and specifically the region of £8-12 million per day, or Artists and musicians use live music strength of our live music sector around £25-30 million per event per 9 to engage fans, build their fan base when operating at full capacity pre- weekend in revenue*. and make commercial sales. They pandemic. In 2019 alone, music The rapid growth rate of the creative also provide significant employment added £5.8 billion GVA to the UK’s industries has been a consistent opportunities to skilled technical economy (up 11% from 2018), trend in recent years.10 The UK music staff such as sound and lighting employed almost 200,000 people industry employs comparatively more engineers. A gig, arena or festival (up 3%) and generated £2.9 billion people than other sectors which are performance will engage managers, in export revenue (up 9%).5 The GVA perceived as strategically important, promoters, marketers, and growth figure is more than triple the for example fishing and steel-making: organisers, circulating employment GVA growth across the UK economy 200,000 employees vs. 12,000 and opportunities and revenue in 2019 (3.3%) – showing that the 32,000, respectively.11 Furthermore, throughout the supply chain. It also music industry has the potential to as the Royal Society of Arts has will generate royalties down the be a key growth industry for our noted, jobs in the cultural and line, providing a source of income to country in the 2020s.6 According to creative industries will be particularly creators including composers and UK Music’s Music By Numbers 20207 resilient to automation – meaning publishers. This revenue is significant report live music contributed £1.3 that the long-term employment for all creators, whether those on billion directly to the economy in prospects for the industry look stage or the ones who wrote or 2019. bright.12 The music industry is a co-wrote the music, particularly as The report also revealed that live vibrant and dynamic sector with generated by licensing. This activity music attendance showed a strong hugely positive long-term prospects then generates revenue for the increase in 2019, up by 11.1% to – so strategic support would not just Government through direct and 12.6 million in 2019, from 11.2 benefit the music industry as it looks indirect forms of taxation. Label million in 2018.8 In total these visitors to recover from COVID-19, it would A&R, the part of record companies were worth £4.7 billion to the UK also benefit the wider economy. who scout and source new and economy, and supported 45,633 emerging artists to sign record jobs. Within the sector festivals saw

5 https://www.ukmusic.org/research/music-by-numbers-2020 6 https://www.ons.gov.uk/economy/grossvalueaddedgva/timeseries/abml/pn2 7 https://www.ukmusic.org/research/music-by-numbers-2020/ 8 https://www.ukmusic.org/assets/general/Music_By_Numbers_2020_Report.pdf Fumi Kaneko as Princess Aurora in The Sleeping Beauty 2019 | The Royal Ballet, ROH - Helen Maybanks © 9 * revenues includes ticket price and onsite spend, this does not include spend offsite. UK Music estimates 2020. 10 https://www.sounddiplomacy.com/our-insights/music-tourism-white-paper https://www.creativeindustriesfederation.com/publications/growing-uks-creative-industries 11 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/920679/UK_Sea_Fisheries_Statistics_2019_-_access_checked-002.pdf http://researchbriefings.files.parliament.uk/documents/CBP-7317/CBP-7317.pdf 12 https://www.thersa.org/reports/work-automation-covid 8 9 importance of live music

5 https://www.ukmusic.org/research/music-by-numbers-2020 6 https://www.ons.gov.uk/economy/grossvalueaddedgva/timeseries/abml/pn2 7 https://www.ukmusic.org/research/music-by-numbers-2020/ 8 https://www.ukmusic.org/assets/general/Music_By_Numbers_2020_Report.pdf 9 * revenues includes ticket price and onsite spend, this does not include spend offsite. UK Music estimates 2020. 10 https://www.sounddiplomacy.com/our-insights/music-tourism-white-paper https://www.creativeindustriesfederation.com/publications/growing-uks-creative-industries 11 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/920679/UK_Sea_Fisheries_Statistics_2019_-_access_checked-002.pdf http://researchbriefings.files.parliament.uk/documents/CBP-7317/CBP-7317.pdf 12 https://www.thersa.org/reports/work-automation-covid 8 9 importance of live music

As well as contributing to national a strategically vital sector, but also economic growth, live music also mobilise a whole range of economic a 110,000 capacity plays a key role in supporting local activity. economies too. The role that live music could play festival can be worth Number of music Music Tourist Festivals and music venues are in reopening the UK post-COVID-19 Nation/Region Jobs Supported over £27 million to a intrinsically linked to supply chain is emphasised by the broad Tourists Spend local area businesses in their local areas geographical spread of the sector including technical freelancers, Venues and festivals of varying East Midlands 516,000 £208 million 2,106 catering providers and service scales such as the Manchester suppliers (for example security). Arena in the North West, Sneaky East of England 596,000 £212 million 2,545 According to the Association of Pete’s in Scotland and Glastonbury Independent Festivals (AIF) a 5,000 in the South West are pillars of our London 4.1 million £1.5 billion 10,697 capacity festival is worth £1.1 million culturally rich live music scene and to the local area, while a 110,000 showcase an incredible variety of South East 1 million £553 million 5,371 capacity festival can be worth over musical genres. £27 million.13 Glastonbury generates South West 1 million £528 million 6,402 Our Music By Numbers report over £100 million into the economy highlights the rapid growth of music of South West England each time it North East 242,000 £60 million 662 tourism outside of London – for takes place and music festivals as a instance, the West Midlands saw an whole employ over 85,000 people North West 1.5 million £477 million 4,976 increase of 19% in music tourists directly.14 from 2018.17 The table on the next Northern Ireland 234,000 £81 million 901 Analysis has showed that for every page highlights the importance of £10 spent on a ticket for a live music live music to each region and nation Scotland 1.3 million £453 million 4,757 event, £17 goes back into the local of the UK.18 economy, driving business for local Wales 440,000 £143 million 1,843 transport, hospitality outlets and retailers.15 One Ed Sheeran gig in West Midlands 877,000 £252 million 2,453 2019 was worth £9 million to the local economy of Ipswich.16 Yorkshire and the Humber 754,000 £264 million 2,918 Given this synergy, implementing a plan for the swift and safe return UK Music, Music By Numbers 2020 of live music would not only boost

13 Updated Optimy figures, AIF DCMS Select Committee Submission on utureF of Festivals 14 http://kilimanjarolive.co.uk/news/let-the-music-play/ 15 http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/digital-culture-media-and-sport-committee/live-music/oral/91709.pdf p.22 16 https://www.ipswichstar.co.uk/news/ed-sheeran-ipswich-concerts-economic-impact-2883010 17 https://www.ukmusic.org/research/music-by-numbers-2020 p. 26 18 https://www.ukmusic.org/research/music-by-numbers-2020 10 11 importance of live music

As well as contributing to national a strategically vital sector, but also economic growth, live music also mobilise a whole range of economic plays a key role in supporting local activity. economies too. The role that live music could play Number of music Music Tourist Festivals and music venues are in reopening the UK post-COVID-19 Nation/Region Jobs Supported intrinsically linked to supply chain is emphasised by the broad Tourists Spend businesses in their local areas geographical spread of the sector including technical freelancers, Venues and festivals of varying East Midlands 516,000 £208 million 2,106 catering providers and service scales such as the Manchester suppliers (for example security). Arena in the North West, Sneaky East of England 596,000 £212 million 2,545 According to the Association of Pete’s in Scotland and Glastonbury Independent Festivals (AIF) a 5,000 in the South West are pillars of our London 4.1 million £1.5 billion 10,697 capacity festival is worth £1.1 million culturally rich live music scene and to the local area, while a 110,000 showcase an incredible variety of South East 1 million £553 million 5,371 capacity festival can be worth over musical genres. £27 million.13 Glastonbury generates South West 1 million £528 million 6,402 Our Music By Numbers report over £100 million into the economy highlights the rapid growth of music of South West England each time it North East 242,000 £60 million 662 tourism outside of London – for takes place and music festivals as a instance, the West Midlands saw an whole employ over 85,000 people North West 1.5 million £477 million 4,976 increase of 19% in music tourists directly.14 from 2018.17 The table on the next Northern Ireland 234,000 £81 million 901 Analysis has showed that for every page highlights the importance of £10 spent on a ticket for a live music live music to each region and nation Scotland 1.3 million £453 million 4,757 event, £17 goes back into the local of the UK.18 economy, driving business for local Wales 440,000 £143 million 1,843 transport, hospitality outlets and retailers.15 One Ed Sheeran gig in West Midlands 877,000 £252 million 2,453 2019 was worth £9 million to the local economy of Ipswich.16 Yorkshire and the Humber 754,000 £264 million 2,918 Given this synergy, implementing a plan for the swift and safe return UK Music, Music By Numbers 2020 of live music would not only boost

for every £10 spent on 13 Updated Optimy figures, AIF DCMS Select Committee Submission on utureF of Festivals 14 http://kilimanjarolive.co.uk/news/let-the-music-play/ a ticket for a live music 15 http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/digital-culture-media-and-sport-committee/live-music/oral/91709.pdf p.22 16 https://www.ipswichstar.co.uk/news/ed-sheeran-ipswich-concerts-economic-impact-2883010 event, £17 goes back into 17 https://www.ukmusic.org/research/music-by-numbers-2020 p. 26 18 https://www.ukmusic.org/research/music-by-numbers-2020 the local economy 10 11 importance of live music

In cultural terms music has an endorsing the UK live scene.21 and wellbeing of audiences and its invaluable place in our society, However, the value of music goes absence in 2020 is felt by those who providing an immense source of far beyond all the pound signs and are responsive to such treatments. support for people in what has been the piles of economic data. Music Live music makes an enormous an exceptionally trying year. has a huge impact on our health and economic, social and cultural The UK has a passion for music that wellbeing. contribution and is key to supports its world class commercial A study published in 2017 in the our country’s future. UK live music sector. UK acts made up 5 American Journal of Hospice and music should be promoted and of the biggest 20 global stadium Palliative Medicine revealed 96% championed by Government in tours in 2019, the UK has the busiest of patients in a controlled study normal times and protected and music venue in the world in the O2 had positive responses to music supported during this pandemic. and in Glastonbury has the largest therapy.22 Mental health charity 19 greenfield festival in the world. MIND has also advocated research The UK has been placed second in that revealed the levels of dopamine the world for soft power. This role were up 9% when participant has been supported by its iconic volunteers listened to music.23 music scene, which shows an idea of Music experiences can be supported the UK and its values to the world through social prescribing with live that has proven to be enduringly music providing a key role here. 20 popular. The live sector and touring Patients with long-term conditions in particular has been a significant who have been treated in this way contributor to the soft power of report to feel less isolated, attend the United Kingdom. It directly 47% fewer hospital appointments encourages people to visit the UK and made 38% fewer visits to A&E.24 enjoy our culture and spend money Based on arts participation rates in while here. England, the Government estimates The global importance of the UK that the total annual NHS cost music industry and our live sector savings due to reductions in GP visits was underscored by the worldwide is £168.8 million.25 response to UK Music’s Let the Live music attendance can have Music Play campaign, with globally a profound impact on the health renowned artists including Cher

19 https://www.pollstar.com/article/the-year-end-top-tours-pop-tops-record-breaking-year-143014 https://www.bbc.co.uk/news/world-44697302 20 https://softpower30.com/ 21 https://www.ukmusic.org/policy/let-the-music-play/ 22 https://www.medpagetoday.com/resource-centers/pain-management/music-therapy-improves-symptoms-and-behaviors-palliative-care-patients/1852 23 https://www.bbc.co.uk/news/health-12135590 24 https://www.gov.uk/government/news/social-prescribing-new-national-academy-set-up 25 https://publications.parliament.uk/pa/cm201719/cmselect/cmcumeds/734/73407.htm#footnote-122 12 13 importance of live music

19 https://www.pollstar.com/article/the-year-end-top-tours-pop-tops-record-breaking-year-143014 https://www.bbc.co.uk/news/world-44697302 20 https://softpower30.com/ Dele Sosimi performong at Jazz Cafe | Justin de Souza © 21 https://www.ukmusic.org/policy/let-the-music-play/ 22 https://www.medpagetoday.com/resource-centers/pain-management/music-therapy-improves-symptoms-and-behaviors-palliative-care-patients/1852 23 https://www.bbc.co.uk/news/health-12135590 24 https://www.gov.uk/government/news/social-prescribing-new-national-academy-set-up 25 https://publications.parliament.uk/pa/cm201719/cmselect/cmcumeds/734/73407.htm#footnote-122 12 13 impact of COVID-19 and challenges faced by live music events The decision on 16 March 2020 to economically viable events but this Tier 1 there are restrictive capacity In Northern Ireland, Scotland • Festivals have faced severe 24% capacity in Tier 1 and 12% withdraw emergency worker support Stage has yet to be met. Pilots of limits for indoor and outdoor events. and Wales, a similar process has 33 problems as a result of the capacity in Tier 2. from mass gatherings and introduce concerts with social distancing have At Tier 2 people are not allowed to played out with periodic national COVID-19 pandemic with the social distancing restrictions to demonstrated that it is not financially socialise indoors outside of their lockdowns alternating with graded closure of their main window • The Cliff Edge report found that control the COVID-19 pandemic viable for the vast majority of venues household or bubble, disincentivising restrictions, (Alert Levels in Wales, of operation from March to 76% of live music employees were across England made it illegal to put to put on shows with profits not the attraction of live events. The Local Protection Levels in Scotland, September. Over 90% of music supported by the Coronavirus Job on live music events, be it outdoor exceeding operating costs.27 “substantial meal” condition in though Northern Ireland has festivals scheduled for 2020 Retention Scheme as of 31 August festivals or indoor concerts. connection to consumption alcohol operated as a unit). These restrictions The fact that is has been near have had to be cancelled, with an 2020. Technical supply companies also initially raised concern but this are continually being revised in 34 In May the Government placed live impossible for any financially viable average non-refundable cost of have seen revenue drop by 95%. has subsequently been resolved. response to the changing situation, music and related events at step 3 music events to take place in 2020 is £375,000 and are forecasting 50% Under the highest tier, Tier 3, all however they all have placed severe in its COVID-19 recovery plan for also in part due to the second wave redundancies in the workforce by • According to a survey by the indoor entertainment must close restrictions on the performance England, postponing the possibility of the pandemic which called for the end of 2020.30 Musicians’ Union, 70% of musicians of any relaxations until at least 4 July renewed restrictions due to a rise with large outdoor events also of live music, where it has been are undertaking less than a quarter suffering a similar fate. allowed at all, making most music and effectively cancelling what was in transmissions. This includes the • The Music Venue Trust state of their usual work and 71% performances uneconomical.28 left of the traditional summer festival introduction on 14 September of the that COVID-19 restrictions have are either actively considering season for 2020 in the process. “rule of six” restricting the number The following statistics further slashed capacities by 75% at leaving the sector or are unsure of 35 On 25 June the Culture Secretary of people gathering, followed on underline the existential crisis that Grassroots Music Venues (GMVs), whether they will continue. Oliver Dowden introduced a five- 24 September by the 10pm curfew COVID-19 restrictions have placed cutting trading hours by 50 to stage roadmap to return to live limiting the time venues could be on live music, festivals and the 75%, limited both performances performances in England. A route open. associated ecosystem: and performers, and introduced back to live performances was of On 14 October a new three-tier • UK Music’s Music By Numbers significant additional costs course welcome, but without solid system was introduced to manage 2020 report concluded that up to on venues to present live dates attached to it there was no regional and local disparities in 85% of live revenue will be lost in events under severely limited certainty for the sector.26 For a sector infection rates before a second 31 2020, revenues have been close conditions. that depends on long-term planning month-long lockdown was to zero since March. According and lead in times the absence of set introduced in early November in to a UK Music survey, 65% of • GMVs have seen a 75.1% revenue dates is an impediment to putting on England. music creators’ income will be drop and are anticipating over 60% events. 32 The Tiers system, which was lost in 2020, rising to over 80% redundancies among staff. It is only at Stage 5 (performances strengthened following the for those most dependent on live allowed outdoors with fuller November lockdown, presents performance and recording studio • Under existing the existing Tier audiences indoors) of the roadmap further challenges for putting on work.29 system in England Grassroots when it may be possible to put on live events. Even at the lower risk Music Venues are operating at

28 https://gov.wales/sites/default/files/publications/2020-12/coronavirus-control-plan-alert-levels-in-wales.pdf https://www.gov.scot/publications/coronavirus-covid-19-protection-levels/ | https://www.health-ni.gov.uk/coronavirus 29 https://www.ukmusic.org/research/music-by-numbers-2020 30 AIF figures https://committees.parliament.uk/writtenevidence/6583/html/ 31 http://musicvenuetrust.com/2020/09/venues-are-viable/ 32 https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf 26 Unless there are local restrictions outdoor performances with social distancing were allowed from 11 July yet stage 4 of the roadmap (performances allowed indoors and 33 Music Venue Trust 2020 outdoors but with a limited distanced outdoors audience) was delayed until 15 August. 34 https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf 27 https://www.itv.com/news/london/2020-07-29/the-clapham-grand-pilot-concert-does-not-provide-blueprint-for-the-live-music-industry 35 https://www.musiciansunion.org.uk/Home/Advice/COVID/take-action-pandemic 14 15 impact of COVID-19 and challenges faced by live music events The decision on 16 March 2020 to economically viable events but this Tier 1 there are restrictive capacity In Northern Ireland, Scotland • Festivals have faced severe 24% capacity in Tier 1 and 12% withdraw emergency worker support Stage has yet to be met. Pilots of limits for indoor and outdoor events. and Wales, a similar process has 33 problems as a result of the capacity in Tier 2. from mass gatherings and introduce concerts with social distancing have At Tier 2 people are not allowed to played out with periodic national COVID-19 pandemic with the social distancing restrictions to demonstrated that it is not financially socialise indoors outside of their lockdowns alternating with graded closure of their main window • The Cliff Edge report found that control the COVID-19 pandemic viable for the vast majority of venues household or bubble, disincentivising restrictions, (Alert Levels in Wales, of operation from March to 76% of live music employees were across England made it illegal to put to put on shows with profits not the attraction of live events. The Local Protection Levels in Scotland, September. Over 90% of music supported by the Coronavirus Job on live music events, be it outdoor exceeding operating costs.27 “substantial meal” condition in though Northern Ireland has festivals scheduled for 2020 Retention Scheme as of 31 August festivals or indoor concerts. connection to consumption alcohol operated as a unit). These restrictions The fact that is has been near have had to be cancelled, with an 2020. Technical supply companies also initially raised concern but this are continually being revised in 34 In May the Government placed live impossible for any financially viable average non-refundable cost of have seen revenue drop by 95%. has subsequently been resolved. response to the changing situation, music and related events at step 3 music events to take place in 2020 is £375,000 and are forecasting 50% Under the highest tier, Tier 3, all however they all have placed severe in its COVID-19 recovery plan for also in part due to the second wave redundancies in the workforce by • According to a survey by the indoor entertainment must close restrictions on the performance England, postponing the possibility of the pandemic which called for the end of 2020.30 Musicians’ Union, 70% of musicians of any relaxations until at least 4 July renewed restrictions due to a rise with large outdoor events also of live music, where it has been are undertaking less than a quarter suffering a similar fate. allowed at all, making most music and effectively cancelling what was in transmissions. This includes the • The Music Venue Trust state of their usual work and 71% performances uneconomical.28 left of the traditional summer festival introduction on 14 September of the that COVID-19 restrictions have are either actively considering season for 2020 in the process. “rule of six” restricting the number The following statistics further slashed capacities by 75% at leaving the sector or are unsure of 35 On 25 June the Culture Secretary of people gathering, followed on underline the existential crisis that Grassroots Music Venues (GMVs), whether they will continue. Oliver Dowden introduced a five- 24 September by the 10pm curfew COVID-19 restrictions have placed cutting trading hours by 50 to stage roadmap to return to live limiting the time venues could be on live music, festivals and the 75%, limited both performances performances in England. A route open. associated ecosystem: and performers, and introduced back to live performances was of On 14 October a new three-tier • UK Music’s Music By Numbers significant additional costs course welcome, but without solid system was introduced to manage 2020 report concluded that up to on venues to present live dates attached to it there was no regional and local disparities in 85% of live revenue will be lost in events under severely limited certainty for the sector.26 For a sector infection rates before a second 31 2020, revenues have been close conditions. that depends on long-term planning month-long lockdown was to zero since March. According and lead in times the absence of set introduced in early November in to a UK Music survey, 65% of • GMVs have seen a 75.1% revenue dates is an impediment to putting on England. music creators’ income will be drop and are anticipating over 60% events. 32 The Tiers system, which was lost in 2020, rising to over 80% redundancies among staff. It is only at Stage 5 (performances strengthened following the for those most dependent on live allowed outdoors with fuller November lockdown, presents performance and recording studio • Under existing the existing Tier audiences indoors) of the roadmap further challenges for putting on work.29 system in England Grassroots when it may be possible to put on live events. Even at the lower risk Music Venues are operating at

The Government has stated that the best way to support the sector, mitigate this damage and support recovery is for live musical performances to resume.36 The longer the sector is closed, the greater the economic damage and the risk of a talent exodus from the industry. The focus must therefore be on how we can get live performance up and running again. There are two risks that need to be mitigated for this to happen: the public health risk from COVID-19 and the economic jeopardy of the restrictions in place - this is both the short-term economics of putting on COVID-19-compliant gigs and the long-term challenges of ensuring a benign environment for businesses to reopen successfully allowing live music events to resume their vital role in the UK economy. The task for the music industry is therefore to first demonstrate that we can effectively manage the health risk by taking necessary measures to reduce the risk of transmission at live music events, and secondly to find a way to operate in the current landscape in a way that is financially viable.

Duke Dumont at Creamfields UK 2019| Anthony Mooney ©

36 Q 109 https://committees.parliament.uk/oralevidence/1049/pdf/ 16 17 recovery How to get the Sector Back on its Feet

36 Q 109 https://committees.parliament.uk/oralevidence/1049/pdf/ 16 17 recovery How to get the Sector Back on its Feet | Managing Health Risks

Until a vaccine is fully rolled out, on the market that reduce the staging live events in the current According to one study, festivals forcing asymptomatic carriers to take The MVT have done preliminary work measures must be taken to manage risk of transmission by improving context.37 We continue to work with have furloughed 75.5% of staff, a test, alerting them to the fact they on a possible app-based solution the public health risk. The music airflows, but unless they are Government to develop and update GMVs 70.5% and larger venues COVID-19 positive and allowing them where an individual could use their ID industry has therefore been looking recognised or validated by this guidance as a priority. 78.8%.41 Even in Tiers 1 and 2 in to self-isolate. to create a profile (AI approved), and at all options to reduce the risk of Government then there is no This ongoing work has allowed a England, which represent the most The safety focused members of the then store event tickets and their last transmission. Our ongoing work on incentive for industry to invest in limited number of festivals and live liberal controls in the UK as of Production Services Association COVID-19 result against their profile. mitigating the risk of COVID-19 in them. events to restart.38 However, the vast December 2020 Grassroots Music (PSA) have produced “quarantine This test would be conducted one to music spaces rests on three pillars: majority remain unable to restart Venues are operating at 24% capacity protocols” to protect staff and two hours prior to entry at a health A. Guidance. Guidance and with festivals and venues still in Tier 1 and 12% capacity in Tier 2. freelancers. For the audience there centre near the event site. We are working closely with The four nations of the United deemed not safe enough to remain To financially preserve the future of are a number of routes that could While we appreciate this cannot Government to develop guidance Kingdom each have their own open as restrictions have tightened, these events and festivals through be followed. “Festival Republic’s be introduced overnight, allowing and clear protocols to enable live rules and restrictions covering live for example during the November the pandemic and to better protect Melvin Benn is continuing to develop more UK-based pilots for fully tested music events to return safely, and performances and festivals and these 2020 lockdown, more work is public health, we would suggest work on his “Full Capacity Plan” events could be a game changer for will continue this collaboration as are regularly updated with regional needed. From a health perspective, enhanced health approaches and conducting pilots of pre-event enabling the early return of festivals a priority. variations. The current restrictions ensuring that all individuals comply are used to apply to non-socially testing in Estonia – if successful, this with reduced COVID-19 restrictions. B. Testing. are defined by the Hands, Face, with HFS is difficult and from an distanced events. However, it could provide a blueprint for how to UK Music is committed to engaging We are committed to engaging Space (HFS) approach. This requires economic perspective it prevents is critical that innovations and safely conduct full capacity events with the Government’s Moonshot with the Moonshot programme regular handwashing, wearing of most festivals from reaching the suggestions made by industry to here in the UK.43 programme and using rapid testing face coverings and maintaining a two and using rapid testing to capacity they need to be profitable. make this possible have an impact on The #WeMakeEvents campaign have to eventually bring back full metre distance from non-household eventually bring back full capacity The ebb and flow of restrictions has Government guidance where their proposed a pilot event under Restart capacity events. This requires proof members. crowds. This requires proof of made it impossible for most festivals efficacy can be demonstrated. Live using loop-mediated isothermal of concept by conducting testing concept, conducting testing Engagement with Ministers and to go ahead in 2020. They require amplification tests (that have been pilots with social distancing, then pilots with social distancing, Officials through roundtables and long lead ins, and event organisers Testing labelled “highly effective” by NHS gradually building up to full capacity. then gradually building up to full workshops has produced useful have not had the confidence under The Health Secretary Matt Hancock Trusts) to screen customers on site Trivandi, one of the global leaders in capacity. work on guidance to comply with HFS that they would be able to go has repeatedly made clear that large but before entry to allow for a non- the delivery and operation of major this. For example, this has included ahead. scale testing is a key part of the socially distanced event.44 They have events and venues, has been working C. Ventilation & pathogen 42 updating the Purple Guide, and While this has allowed some events Government’s COVID-19 strategy. worked closely with North Greenwich closely with the Government to reduction systems. developing guidance from all four to go ahead the vast majority have To require testing before entering Safety Advisory Group and have put develop this work. The music We are looking at improved UK Governments on restarting not. According to the AIF, 90% of a festival or venue could in the forward a proposal for a pilot 2,500 industry is engaging with this work, ventilation and other pathogen performing arts to help festivals and festivals in 2020 were cancelled.39 long-term allow restrictions to be person event. We would hope the and is committed to doing whatever reduction systems. There are a other live music events to establish The Cliff Edge Report found that only relaxed inside venues and festivals, Department of Health and Social is necessary to make it a success. number of ventilation systems on high level planning considerations 20% of pre-pandemic income has as well as support the Government’s Care (DHSC) will strongly consider the market that reduce the which must be put in place when been secured.40 overarching COVID-19 strategy by approving and supporting this pilot.

37 https://www.ukmusic.org/assets/general/music-festivals-COVID-supplementary-guidance-v1-13th-october-2020.pdf https://gov.wales/rehearsing-performing-and-taking-part-performing-arts-guidance-phased-return-html https://www.gov.scot/publications/coronavirus-COVID-guidance-for-the-performing-arts-and-venues-sector/ 41 https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf https://www.gov.uk/guidance/working-safely-during-coronavirus-COVID/performing-arts 42 https://hansard.parliament.uk/Commons/2020-12-02/debates/FE328933-735C-48E9-9BF0-ED692E9CF8C4/CoronavirusVaccine?highlight=mass%20testing#contribution- https://www.thepurpleguide.co.uk/ 468B52F8-92D9-4166-9E45-51A696A8B53D 38 https://edition.cnn.com/travel/article/social-distanced-music-festival-intl-scli-gbr/index.html https://hansard.parliament.uk/Commons/2020-11-17/debates/67DE24F4-8F99-4229-B6CE-0A3F739C2FE3/Covid-19TestingPilotInLiverpool?highlight=mass%20 https://www.huffingtonpost.co.uk/entry/ginburne-park-pop-up-socially-distant-festival-review_uk_5f1603a6c5b651977c053b08?guccounter=1&guce_ testing#contribution-03D78CE3-EC8C-42F1-8338-BE0387C7CAA7 referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvLnVrLw&guce_referrer_sig=AQAAAFCagMEgeLOAXN3M6Ch6-bsdErV524kzVtq85w9ItCCIeLUWnYlfLylWQZCaWu1avroec6c3a_ https://hansard.parliament.uk/Commons/2020-11-17/debates/789ABA7D-9452-4771-847A-24BDC64D8F4C/TopicalQuestions?highlight=mass%20testing#contribution- O3M1Rrg3Bui7jrL3jfHBEQamnm0F06ztiqFmh8ON861W7Y1ALapUHhsxhazhc4FzJPHwIwMHJKDkJNcpkvrAO1rttUerbElbxW 22CFD8EA-29BD-4ADF-B36E-344BB00E0196 39 https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf 43 https://accessaa.co.uk/festival-republic-md-announces-plan-to-use-events-to-incentivise-testing/ | https://committees.parliament.uk/oralevidence/819/pdf/ 40 https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf 44 https://www.gov.uk/government/news/clinical-evaluation-confirms-accuracy-of-lamp-test 18 19 recovery How to get the Sector Back on its Feet | Managing Health Risks

Ventilation & pathogen however, there is no process for For Grassroots Music Venues for The development of a variety venues and festivals certainty among the safest environments to officially recognising the impact example, the MVT have drawn of potentially effective vaccines that it is possible for them to carry out social contact, and the reduction systems they have on reducing the risk of together a Test, Clean, Prevent including the Modena, BioNtech/ operate safely and profitably under various technologies and innovations The return of indoor music is critical transmission in indoor spaces. Unless approach. Pfizer and Oxford vaccine is excellent COVID-19. This would give them we are exploring will help deliver to the sector as a whole. The sector is these innovations are recognised or i. Test. news.47 However, we would urge the the business confidence to invest that. actively working to look at innovative validated by Government then there Exploit rapid testing to test Government to continue to engage in this technology while providing As an industry, we are working protective solutions. is no incentive for industry to invest people before they enter a venue with the industry on enhanced an opportunity for businesses and on multiple options to manage The MVT is actively involved with in them. or festival. measures and guidance that could freelancers to secure their future in the public health risk. However, trialling the use of UVGI/UVG systems The industry is keen to further ii. Clean. allow safe non-socially distanced the industry. We do not know how there is no clear mechanism for in pilot projects. These systems use develop a dialogue with DHSC (and If an infected person were to performances to resume as soon as long the vaccine rollout will take, validating these various approaches UV light to deactivate airborne viral devolved Health Departments) and make it through the testing possible, and to certify any methods and with many younger people who with Government. We therefore pathogens by drawing air from a there have been productive trials system, cleanliness systems can found to be effective. often make venues and festivals recommend establishing a room and passing it under a UV light. involving DCMS and venues on other help prevent the spread of the We are keen to work as closely as viable being among the last to be taskforce that can advise, While seemingly novel technology, issues, such as the live audience trials pathogen combined with vigorous possible with DHSC and the devolved inoculated, it is imperative we find an evaluate and validate the various their use is backed by medical at the London Palladium. ventilation. Health Departments to achieve this. alternative to simply waiting for the innovations we are looking at science. For instance, UVG systems vaccine. Similar pilots could trial this iii. Prevent. It should also be noted that many implementing. This has been very are recommended by the Centers technology and if successful, Use preventative anti-viral independent festivals and GMVs It is also crucial to stress that this effective for the sports sector, for Disease Control and Prevention Government could provide a form technology to halt surface will quickly reach a tipping point in work on improved ventilation with the Sports Technology and (CDC) in the USA as part of of recognition that would enable transmission including anti-viral terms of any additional cost and we and pathogen reduction systems Innovation Group. We recommend preventing the spread of COVID-19 in venues (and other indoor spaces, like wipes and surfaces. would welcome further analysis of is important not just for tackling that Government does the same for an office.45 COVID-19 – it will have a dramatic the live performing arts sector. those in the hospitality sector) to Global evidence from similar efforts this approach in a festival-specific impact on reducing the transmission UK Music has also been in discussion open and operate safely without the are positive. It should be noted that context. The sooner live music events of seasonal viruses, like flu. It with companies like CleanAir restrictions they see today. the German Restart-19 initiative can open without social distancing, Spaces and BioTech Group, which also has huge relevance for the As they are approved, and is already producing results that the sooner the sector will need use state-of-the-art air and surface future. COVID-19 has generated an Government certified, the sector indicate that if hygiene concepts are less overt Government support. purification technology to reduce increased focus on globally spread would look to draw them together to adhered to at live events impacts on Certifying safe ways of operating the risk of COVID-19 transmission by diseases and there is growing produce economically viable festivals the pandemic are low to very low.46 under an airborne pandemic will be continuously filtering and cleaning speculation about where the next and events. There are a variety of an important learning, and thereby the air and surfaces in an indoor Much of the groundwork has pandemic might come from. ways this could be done depending future-proof the sector. environment. There is growing already been put in place but needs on the venue and space, as different Finally, there is the question of We do not know when the next scientific evidence backing these Government recognition for the next spaces face differing COVID-19 risks. certainty. Certifying enhanced epidemic will hit us, but if and when types of systems and verifying the stage. health approaches would give it does, the music industry will be effect they have on transmission; ready. We are determined to be

45 https://www.cdc.gov/coronavirus/2019-ncov/community/office-buildings.html 47 https://www.gov.uk/government/news/pfizer-biontech-covid-19-vaccine-mhra-statement 46 https://www.iq-mag.net/2020/10/restart-19-results-events-could-take-place-pandemic/#.X8TzoWj7Q2w https://www.gov.uk/government/news/oxfordastrazeneca-covid-19-vaccine-mhra-statement-confirming-letter-received 20 21 recovery How to get the Sector Back on its Feet | Managing Health Risks

45 https://www.cdc.gov/coronavirus/2019-ncov/community/office-buildings.html 47 https://www.gov.uk/government/news/pfizer-biontech-covid-19-vaccine-mhra-statement 46 https://www.iq-mag.net/2020/10/restart-19-results-events-could-take-place-pandemic/#.X8TzoWj7Q2w https://www.gov.uk/government/news/oxfordastrazeneca-covid-19-vaccine-mhra-statement-confirming-letter-received 20 21 Rae Sremmurd at Wireless Festival 2019 | James Bridle ©

22 23 22 23 recovery How to get the Sector Back on its Feet | Managing Economic Risks

For as long as the current social proposed by One Industry One to be synchronised. distancing restrictions remain in Voice, ticket matching or an increase Businesses right down the supply 51 place and with the enhanced health to the CRF. Critically, this would chain need to be confident that they approaches not certified, most make socially distanced performance can reopen in such a way that they of the live music sector cannot economical, not stimulate consumer can meet sufficient profit margins to operate viably. While the situation demand. However, it would unlock at least start to claw back the debt endures, more needs to be done consumer spending and business incurred and losses made during to address the economic risk of activity, generating work throughout the restrictions (much Government socially distanced performances the live music ecosystem. support has been in the form of loans to stimulate more activity in the The sector wants to get back to work as opposed to grants). To support the sector. Indeed, the Culture Secretary yet cannot do so economically due live sector as it exits restrictions, UK Oliver Dowden has stated that to Government restrictions across Music has a set of key asks of the UK one of the purposes of the Culture the UK. If the music industry is not and devolved Governments: Recovery Fund (CRF) in England was allowed to operate viably, then to act as an investment in activity Government will need to address the An indicative date for full as opposed to simply a mothballing economic risk to festivals and venues capacity restart exercise.48 While the £1.57 billion and financially support socially The Government has published its was very welcome, this was spread distanced events until full reopening roadmap for reopening, however over the creative industries worth can be reached with a vaccine. it does not include any dates.52 cumulatively £117 billion that have We are confident that through Northern Ireland, Scotland and Wales been losing £1.4 billion per week partnership with Government and have also indicated the levels that during the pandemic.49 The CRF has the private sector we can effectively they will each need to move through been successful in protecting many manage the public health risks to reach full reopening but not valued cultural organisations and at festivals and live music events given timescales, nor have indicated institutions, but it has not stimulated and make them safe places to be. whether each level will be necessary. enough activity to support artists and However, even if an enhanced An indicative date for the reopening freelancers, with a Musicians’ Union health approach and early opening is of venues for non-socially distanced survey finding that 70% of musicians adopted, there will remain significant performance is vital to allow the have received less than a quarter of challenges for the industry. It is sector to be able to plan and prepare their usual work.50 also vital that existing support is for the return of large-scale events. Several proposals have been put maintained until Stage 5 reopening is The Health Secretary Matt Hancock forward including suggestions of reached, whenever in 2021 that may has stressed to the Commons, subsidy schemes such as those be. The support and restrictions need “The end is in sight…The return of

our freedoms is on the horizon.” 53 and the knock-on effect this has fund would sit separate to the usual The Secretary of State for Digital, on the ability to procure insurance. cancellation claims and would pay Culture, Media and Sport Oliver Most festivals and GMVs did not out in the event of a COVID-19 Dowden has suggested that March/ have insurance which covered enforced cancellation. April 2021 was being “looked at” as communicable diseases at the The proposed fund would pay out 54 a time for loosening restrictions. outbreak of the pandemic and many a higher proportion of costs closer The Prime Minister himself spoke existing policies specifically excluded to the date of cancellation, while it of the “sure and certain knowledge COVID-19. The commercial insurance would also have geographic limits that we will succeed” in returning market is not currently offering on the spread of events covered to 55 to normality in Spring 2021. While any COVID-19 cancellation policies prevent overexposure. The sector encouraging, these statements are whatsoever for festivals and this may has estimated that a £650 million not specific enough for business be the case until 2022. fund would allow £2 billion worth of purposes. We would propose that We have seen recent successful activity to go ahead. Giving longer all four UK Governments announce support in this area with the £500 term certainty would also make the an April 2021 date for reopening million Restart Scheme for Film current VAT cut more effective by without social distancing to provide and TV which helped delayed allowing venues and festivals to take clarity. It should be made clear that productions obtain insurance.56 While advantage of this through ticket support will continue until this date. we appreciate that the film and TV sales. The timing of the announcement insurance scheme was put in place Furthermore, any income from of an indicative date is crucial. We under a different context to live sales would help businesses and envisage major live music festivals music events, it should be noted that organisations in the supply chain for the summer will need to make insurance remains a primary barrier looking to survive this difficult decisions as to whether they are 57 to events going ahead. period. We would note that the going ahead in January 2021, and so The live music sector has drafted a German Federal Government has it is imperative that we have certainty proposal for a reinsurance scheme pledged €2.5 billion to insure for the sector as soon as possible. which would cover events from any events for the second half of 2021. Introduce a government- indicated re-opening date in 2021 (to The Austrian Government has also be confirmed) to December 2022. established a €300 million umbrella backed reinsurance The promoter/venue would pay into scheme for promoters.58 scheme a COVID-19 fund, to be matched With other countries acting to give by the Government, in addition to A major barrier to the scheduling of events and festival confidence to go an additional premium paid by the events is the inherent uncertainty ahead with events in that period, we around the progress of the pandemic insurance industry. This COVID-19

48 https://committees.parliament.uk/oralevidence/1049/pdf/ 49 https://www.creativeindustriesfederation.com/sites/default/files/inlineimages/The%20Projected%20Economic%20Impact%20of%20Covid19%20on%20the%20Creative%20 Industries%20Report%20%20Creative%20Industries%20Federation%202020.pdf https://www.ukmusic.org/news/uk-music-welcomes-government-support-to-help-save-135-grassroots-music-venu 53 https://hansard.parliament.uk/Commons/2020-12-01/debates/27DE3E44-807A-4596-AD7C-946314AC3E2A/PublicHealth?highlight=spring#contribution-34BA733A-859F-484F- 50 https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf B34A-2A1F30CB81BE https://www.musiciansunion.org.uk/Home/Advice/covid-19/take-action-pandemic 54 https://committees.parliament.uk/oralevidence/1049/pdf/ 51 https://www.gov.uk/government/groups/culture-recovery-board 55 https://www.gov.uk/government/speeches/prime-ministers-statement-on-coronavirus-covid-19-2-december-2020 https://www.nme.com/news/music/musicians-and-crew-call-for-seat-out-to-help-out-scheme-and-tailor-made-job-support-to-survive-until-april-2782730 56 https://www.gov.uk/government/publications/film-tv-production-restart-scheme 52 https://www.gov.uk/government/publications/our-plan-to-rebuild-the-uk-governments-COVID-recovery-strategy/the-next-chapter-in-our-plan-to-rebuild-the-uk-governments- 57 https://www.theguardian.com/politics/live/2020/nov/26/uk-coronavirus-live-average-pay-covid-england-tiers-boris-johnson-scotland COVID-recovery-strategy--2 58 https://www.iq-mag.net/2020/10/e300m-umbrella-for-austrian-promoters/#.X9Dhodj7Q2w 24 25 recovery How to get the Sector Back on its Feet | Managing Economic Risks would welcome UK festivals being summer 2021. economic support to make it viable. given the same certainty.59 Our preference as an industry is Only the UK Government can raise Targeted financial to be able to support ourselves by the level of support needed to support generating our own income, as we always have done – but if we are not underwrite the insurance, and with The sector is not unviable, it has been allowed to do so, then we will require other countries taking action to effectively closed-down all year by additional economic support, either protect their events industries it Government instruction put in place in the form of an extended CRF or is vital that the UK does the same. to preserve public health, either by a scheme like that proposed by the We would emphasise that this law or by the economics of operating OneVoice campaign. issue is highly time sensitive – with under the restrictions. Therefore, many festivals usually taking six to there is a moral imperative that Gaps in the existing support eight months minimum of advance support be maintained for those who packages also need to be addressed. planning, they will be deciding cannot currently work. Furthermore, Any reopening of the sector needs whether to go ahead or not in Q1 it makes economic sense given the the workers and businesses in place 2021. 2021 festivals early in the promising outlook for a vaccine - a to make it happen. 72% of those season (May/June) are already time relatively small investment to keep working in the music industry are shifting / cancelling due to this skills in the sector now could pay self-employed freelancers, and as we lengthy planning cycle. If they cannot massive dividends when the sector have repeatedly highlighted many secure appropriate insurance, then looks to reopen. are falling in between cracks in the they will not be able to take place. support. The first half of 2021 will be critical The larger the festival, the longer the for the sector. Support like Business While many in the music industry lead-in time required. The same can Rate Relief, the Coronavirus have helped by coordinating and also be applied to venues, with many Job Retention Scheme and Self- contributing to a range of hardship stadium tours booked over a year in employment Income Support funds supported by UK Music advance. Scheme (SEISS) has been critical. members (including PPL, PRS for On a practical level, with a lack of Music, the BPI, the Musicians’ Union, If the sector is not allowed to reopen viable insurance options hindering AIM and the MMF) there are many fully (i.e. without restrictions) in the ability of businesses to plan, we in our industry’s workforce who still line with this, any withdrawal of risk a dearth of live music events for face an immense financial struggle. support would be catastrophic. the public to enjoy when restrictions Only 34.2% of creative freelancers Furthermore, if the sector is not are lifted. This is of particular note have accessed SEISS and it is allowed to open without social as we see increasing Government critical that the Government looks distancing at this point, it will require confidence of resuming normality by to close the gaps in support that

exist including for the newly self- shows have been put on, demand has measure is currently of limited use to employed, those drawing dividends been high. music businesses. Extending the VAT in lieu of salary and those with mixed Targeted support must be put in cut beyond March would maximise its 60 incomes. The House of Commons place which recognises the unique effect of supporting festivals while Treasury Select Committee Report dynamics of the music industry and incentivising venues to schedule Employment and COVID-19: Time for how it is impacted by the pandemic. performances, sell tickets and take a New Deal has made clear that too Doing so would ensure the artists, advantage of the cut. This would be many of the self-employed who need managers, composers, songwriters, of greater benefit to businesses in 61 support have missed out on it. sound engineers, promoters, the live sector and also incentivise It is vital that all four Governments technicians and countless others activity, which would in turn support work together to ensure that that the sector relies on can get the the rest of the music eco-system. An businesses and jobs are supported in support they need. This is critical for extension of the VAT cut would allow a way that matches local restrictions. the industry’s recovery so it can get businesses to re-capitalise more This will ensure that health measures back on its feet and continue the quickly and maintain their cashflows. are able to match the crisis without work of rebuilding this world-leading A temporary reduced rate of 5% VAT causing undue damage to businesses. industry to pre-COVID-19 levels. is needed to make a real difference to many live music businesses that We have welcomed where devolved Support must be extended until full operate at very narrow margins. Governments have been responsive reopening is possible. to gaps in support, such as the Rollover of the paid 2020 Scottish Government's newly-self Extension to the VAT rate employed hardship fund, but we reduction on tickets Local Authority license would prefer these gaps to be As it stands, the Chancellor has fees rectified at a UK level to ensure those extended the VAT reduction on ticket Festivals have faced severe across the UK can benefit. sales to 31 March 2021. However, problems as a result of the COVID-19 Music festivals and venues have the music venues and festivals were pandemic, one of which is non- majority of their staff on furlough precluded from operating under the refundable costs which were sunk and therefore a plan that explicitly national lockdown which was in place into the 90% of festivals which were links support to full reopening from 5 November to 2 December cancelled. On an average these were could help protect those jobs.62 But 2020 and we still have no indication of £375,000.63 Licensing fees are one once restrictions lift, if the skills are of when events will be permitted to of the key costs festival face each there the sector can quickly return take place in such a way that they are year. Where those festivals have had to profitability - anecdotally where economical to put on. Therefore, this to be cancelled due to COVID-19

60 https://www.gov.uk/government/statistics/self-employment-income-support-scheme-statistics-september-2020 61 https://committees.parliament.uk/publications/3958/documents/39777/default/ 62 https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf 59 https://accessaa.co.uk/german-government-creates-e2-5bn-fund-to-cover-event-cancellation-costs/ 63 https://www.ukmusic.org/assets/general/UK_Music_Submission_to_DCMS_Select_Committee_ImpactCOVID_7_May2020.pdf p. 6 and 10 26 27 recovery How to get the Sector Back on its Feet | Managing Economic Risks those licences have not been used. and festivals (where applied) as they would represent an investment in Licences are normally charged on an usually cover a large space and are those businesses and allow them annual basis and therefore not only often situated in valuable commercial to focus on creating and delivering will the festivals have to pay for a areas. The 2017 revaluation saw rates events that employ people and 2020 licence without generating any rise by as much as 800% for some keep the economic gears turning. income, but they also face having to venues.66 As it stands this relief will The Treasury needs to consider the pay again for 2021. end in March 2021, however, with cost of inaction as well. Business We understand that some councils no indicative date for reopening it is rates are a large drain on the music have allowed festivals to roll-over the unclear if venues and festivals will be venues that help stage city festivals, charges on a discretionary basis.64 We able to put on events and therefore as recognised by the Chancellor’s recommend that the UK Government generate any income by then. pre-crisis cut in business rates for 69 and the devolved Governments It is estimated that the live industry GMVs. Maintaining them when the provide funding to Councils to cover is likely to need a three-year recovery sector has not yet recovered will these costs. This would allow more cycle, while the OBR calculates that cost jobs, businesses and growth. festivals across the country a greater the peak unemployment rate of 7.5% Ultimately this will hit HM Treasury chance of surviving 2020/2021 and will occur after March 2021.67 Indeed, in unemployment payments and be in a stronger position to pay the the Chancellor noted in his Autumn forgone tax revenue. charges in 2022. This would also Statement to the Commons on 25 As we have recommended previously, create opportunities for the rest of November our “economic emergency we suggest that a waiver on business the festival supply chain. Festivals has only just begun”.68 rates for GMVs is put in place until have a strong impact across rural Since 2014 the Valuation Office 2022/23, with festivals situated on and urban economies, with music has increasingly taxed festival agricultural land removed from the tourism generating £4.7 billion to the sites as rateable businesses. This is levy entirely. This, combined with 65 economy in 2019. particularly unfair as festivals are an overhaul of the business rates system, would support culturally Extension to business not active on their sites for the vast majority of the year with only 5% significant live music venues rates relief of festivals having any permanent and festivals to maintain viable We welcomed the COVID-19 infrastructure. To ensure the live businesses and be an investment business rate relief implemented sector survives the first half of 2021 in the long-term economic health 70 by the Chancellor for 2020/21 as an we need active businesses employing of the music industry. Devolved important measure for music venues. people, making money and doing Governments could make this cut Historically, business rates tended what they do best. For the live themselves, but may need Treasury to unfairly penalise music venues music sector waiving business rates support to do so.

64 https://committees.parliament.uk/event/1878/formal-meeting-oral-evidence-session/ 65 https://aiforg.com/wp-content/uploads/AIF-Ten-Year-Report.pdf 66 https://www.ukmusic.org/assets/general/UKMusic_NonDomesticRatingListsBill.pdf 67 http://cdn.obr.uk/CCS1020397650-001_OBR-November2020-EFO-v2-Web-accessible.pdf https://www.creativeindustriesfederation.com/publications/report-projected-economic-impact-COVID-uk-creative-industries 68 https://hansard.parliament.uk/commons/2020-11-25/debates/6437F778-628F-48A1-ADF3-C06BA1C09EBA/SpendingReview2020AndOBRForecast 69 https://www.ukmusic.org/news/uk-welcomes-government-cuts-to-business-rates-for-grassroots-music-venues 70 https://www.ukmusic.org/assets/general/UKM_Final_HMTreasuryBusinessRates_18.09.pdf 28 29 recovery How to get the Sector Back on its Feet | Managing Economic Risks

64 https://committees.parliament.uk/event/1878/formal-meeting-oral-evidence-session/ 65 https://aiforg.com/wp-content/uploads/AIF-Ten-Year-Report.pdf 66 https://www.ukmusic.org/assets/general/UKMusic_NonDomesticRatingListsBill.pdf Los Campesinos performong at Leeds University Union | Jess Rowbottom © 67 http://cdn.obr.uk/CCS1020397650-001_OBR-November2020-EFO-v2-Web-accessible.pdf https://www.creativeindustriesfederation.com/publications/report-projected-economic-impact-COVID-uk-creative-industries 68 https://hansard.parliament.uk/commons/2020-11-25/debates/6437F778-628F-48A1-ADF3-C06BA1C09EBA/SpendingReview2020AndOBRForecast 69 https://www.ukmusic.org/news/uk-welcomes-government-cuts-to-business-rates-for-grassroots-music-venues 70 https://www.ukmusic.org/assets/general/UKM_Final_HMTreasuryBusinessRates_18.09.pdf 28 29 conclusion acknowledgements

Music has always been a British huge benefits the live music sector Drawn together, this strategy sets This report is based on information shared with UK success story, a key national asset can bring to the eventual post- out how the nation that gave the Music following a consultation with members and that plays a vital role in the social, pandemic recovery, we ask the world Glastonbury, Stormzy and the associated bodies in Autumn / Winter 2020. economic and cultural life of our Government to build on this further Cavern Club can bounce back past We thank all those who engaged in this consultation country and our communities. with the following: COVID-19 and beyond. and provided responses to the questions asked. An Integral to this is the UK’s dynamic With the right support the live music earlier version of this report formed the basis for UK and commercially successful live • Set out an indicative date for full industry can be at the forefront of Music’s written evidence to the House of Commons music scene, which is admired around capacity restart without social the post-pandemic recovery and play DCMS Select Committee inquiry into the future the world and boosts Britain’s global distancing a key role in our country’s economic of UK music festivals as submitted on 9 December reputation. • Introduce a Government-backed and cultural revival – but there 2020. COVID-19 has devastated our reinsurance scheme will need to be a concerted effort industry, and the live music sector from industry and the Government We thank in particular LIVE and its member bodies for contributing information, evidence and insights has faced unprecedented challenges • Extend the VAT rate reduction on together if we are to let the music that have informed this report. during the pandemic – but there is a tickets beyond March 2021 play and save our summer. route for it to return to delivering the For all media enquiries contact: huge benefits for our country that • Extend the business rates relief Vincent Moss & Jennifer Geddes it has consistently generated in the [email protected] past. • Rollover the paid 2020 Local [email protected] With the right support, the UK music Authority license fees for festivals industry can be at the forefront of to 2021 For all policy enquires contact: the post-pandemic economic and Tom Kiehl, Felicity Oliver & Matt Bold cultural revival. This report has set • Targeted financial support [email protected] out a clear blueprint for how we can [email protected] get the live music sector back on its • Ramp up engagement with the [email protected] music industry on Moonshot feet in time for summer – by taking This document was designed by Beatriz Ribeiro at testing pilots so we can utilise necessary measures to mitigate the UK Music public health risk and reduce the risk rapid testing to eventually bring of transmission, and by securing the back full capacity crowds All written material copyright © UK Music 2021 right support from government to except where otherwise indicated • Establish a taskforce that can enable live events to operate in an UK Music economically viable way. advise, evaluate and validate the various innovations the Savoy Hill House UK Music is immensely grateful for music industry is looking at 7-10 Savoy Hill the action Government has taken implementing to reduce the risk London to protect the sector during this of transmission – now and for the WC2R 0BU pandemic. However, to unlock the future T: 020 3713 8444 Twitter: @UK_Music Email: [email protected] Website: www.ukmusic.org

30 31 conclusion acknowledgements

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