Music venue bosses have called on the Government to return tax payments made on contributions intended for musicians and grassroots venues.
It comes after the Government secured more than £1 million through VAT on contributions on tickets bought by concert attendees since last year.
Jon Collins, boss of industry group Live (Live music Industry Venues and Entertainment) and charity arm Live Trust, told the Press Association that it “is only correct” these VAT payments are repaid.
The trust is funded by £1 contribution from tickets sold for tours, shows and events over 5,000 capacity.
Musicians including Harry Styles, Olivia Dean and Lily Allen have raised funds from tickets over the past year, providing additional financial support for grassroots musicians, venues, crews and festivals.
It is estimated that Harry Styles’ current run of concerts at Wembley will secure more than £1 million in contributions, but this means the Government will take 20% of this – at least £200,000 – through VAT.
It comes amid a backdrop of fierce pressure on the live music industry in recent years, with artists reducing the size of tours because of cost, cutting crew sizes, and small festivals and venues collapsing.
The ticket contributions have raised around £6 million since they were first introduced last year, meaning around £1.2 million of this has been taken by the Treasury to date.
Live Trust said will be distributing £3.5 million by the end of the year, with £500,000 already distributed, £1 million to be announced in July, and £2 million set for November.
Mr Collins said: “There is definitely momentum building and really strong recognition from big artists and venues.
“The pressures facing all parts of the sector are still there, weighing on operating costs and margins, and that is often with artists and operators not paying themselves properly.”
Live Trust said it has had constructive discussions with representatives for government departments including the Department for Culture, Media and Sport over the VAT policy.
It has called on the Government to ensure that 100% of every £1 pledged reached the grassroots sector, either through exempting this contribution from VAT or through a matched refund.
The organisation said there is a precedent for the Treasury making a similar VAT exemption, such as in 2014 for Band Aid’s anniversary single.
