UK government to introduce levy on stadium tickets to support grassroots venues

The UK government is set to introduce a voluntary levy on tickets for concerts at stadiums and arenas to help fund the smaller venues which have struggled in recent years after the pandemic and rising inflation. 

The government argues that an "industry-led" levy "within the price of a ticket" would be the quickest and most effective way for revenues from the biggest shows to help the grassroots sector. 

"Ministers have made clear that they want to see a voluntary levy come into effect as soon as possible for concerts in 2025, with clear communication to fans on the purpose of the levy and the benefits it will bring to the grassroots sector," according to the Department for Culture, Media and Sport (DCMS). 

The DCMS also stated that ministers expect the music industry to push through their proposals "as soon as possible" for shows next year.  

Creative industries minister Sir Chris Bryant said: "Grassroots music venues are one of the UK's most valuable and yet undervalued cultural assets." 

"They are where bands try out new material, where whole new genres are born, where musicians experiment and where audiences get to experience the raw power of live music. These venues support thousands of jobs and are a vital part of our local communities.” 

He added: "Without a flourishing grassroots music industry the rest of our music industry will wither," adding that it is “crucial that we work together to support the grassroots including venues, festivals, artists and promoters.” 

“That is why I am urging the industry voluntarily to introduce a ticket levy on the biggest commercial players, to help ensure the health and future success of our entire live music industry for decades to come.” 

The cross-party committee on culture, media and sport, which put forward the proposal, welcomed the ministerial support but said a "firm deadline" is needed on how long the industry has to take action "before the government itself steps in". 

The committee said it would hold a hearing with the sector in six months' time if no major progress is made. 

Responding to the news, the Music Venue Trust welcomed the government’s “stance on the necessity and desirability of a grassroots contribution” and argued that “industry-led investment will enable fans across the country to keep accessing the live music that they love whilst also ensuring the talent pipeline to the arena and stadium level is secure and growing”. 

Elsewhere, Michael Kill, CEO of Night Time Industries Association, stated: “Grassroots venues are not just cultural spaces; they are where new talent is nurtured, where creative communities thrive, and where diverse musical genres find a platform. Without targeted intervention, we risk losing the foundation of the UK’s globally renowned music industry." 

He added: "Our industry is facing an existential crisis, with venues closing at an alarming rate due to unsustainable costs and reduced revenues. The proposed levy and VAT reduction would bring much-needed financial relief, giving venues, artists, and promoters the support they need to continue operating.” 

A much needed relief, as a report showed that 2023 was a “disastrous” year – the worst on record, with 125 grassroots music venues shutting their doors in the UK. That’s a rate of two per week. 

Several bands have already started to donate part of their ticket sales to help fund smaller venues. These include the likes of Coldplay and Enter Shikari, who have adopted a levy of their own on huge tours to help save the grassroots. Enter Shikari gave £1 of every ticket sold for their 2024 arena tour to the Music Venue Trust; Coldplay have pledged to donate 10% of profits from their upcoming UK stadium tour to support smaller venues.