LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music

 
CONTINUE READING
LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music
LET THE MUSIC PLAY:
 SAVE OUR SUMMER

      JANUARY 2021
LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music
Queen Zee at Download 2019 | Georgia Penny ©
LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music
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
                              the benefits of music to British society
LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music
foreword
Chief Executive | Jamie Njoku-Goodwin
                  Live music is the beating heart of       therefore it is in the national interest
                  the UK music industry. It generates      for the sector to be supported and
                  billions of pounds for the economy       helped back to normal. To that end,
                  every year, supports thousands of        we put forward a clear plan for
                  jobs across the country, and draws       recovery: what we need to do to get
                  millions of music tourists to all four   the live music sector back up on its
                  corners of the UK.                       feet again in 2021.
                  In addition to the economic impact,      Before the vaccine is fully rolled out,
                  it also has huge social and cultural     there will remain a public health
                  benefits. The UK’s vibrant live          risk. Therefore, one of our main
                  music scene has given us a global        tasks as an industry has been to do
                  reputation, and the music industry       everything we can to reduce the risk
                  as a whole was set to be one of the      of transmission in our environments
                  British success stories of the 2020s.    and make event spaces as safe
                  COVID-19 has put much of that            as they can possibly be. We are
                  at risk. The pandemic has had a          working with government to develop
                  devasting impact across our industry,    guidance for how to hold events
                  and live music has been one of the       safely, and engaging with testing
                  biggest casualties. However, as we       pilots to make sure infections are
                  argue in this report, the devastation    not brought into live music events.
                  caused by COVID-19 does not have         We looking at new ventilation and
                  to be permanent. We were a growing       air purification systems that would
                  and thriving industry before the         dramatically reduce the risk of
                  pandemic hit, and with the right         transmission. And we are proposing
                  support we can be that successful        an enhancement to Hands, Face,
                  and self-reliant industry again.         Space, which puts responsibility for
                                                           making environments safe onto
                  In this report, UK Music highlights
                                                           venues rather than individuals.
                  the vital role live music plays in our
                  communities and lays out the stark       This work is not just important for
                  challenges it has faced over the         tackling the risks from COVID-19 – it
                  course of the pandemic. We argue         is a blueprint for how the live events
                  that the music industry will have a      sector can operate safely and viably
                  key role to play in the post-pandemic    through future epidemics too. In our
                  economic and cultural recovery, and      increasingly globalised world, we

                                       4
LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music
cannot assume that pandemics are a       speak openly about the prospect of
once-in-a-century phenomenon. We         returning to normal by the spring,
don’t know when the next pandemic        and the combination of vaccines and
will strike, but as an industry we are   rapid testing gives hope that we will
determined to be ready for it when       be in a position to hold large-scale
it does, and be one of the safest        events by the middle of this year.
environments for social contact.         Summer might seem a long way off,
Getting our sector back on its feet      especially when we are in the midst
is not just about mitigating the         of a second wave of Covid-19. But we
public health risk. COVID-19 has had     operate to long lead times as a sector
devastating economic consequences        and now is when the key decisions
too, with huge ramifications on          about the summer music season are
cost, confidence and certainty. An       being taken.
indicative date for restart and a        When the time for recovery comes,
government insurance scheme are          the music industry can play a key
vital – without them, many major         role in the post-pandemic economic
festivals will not have the confidence   and cultural revival. But if the right
or the preparation time to go            support and reassurance is not put in
ahead this year. Policies like the       place for event organisers, artists and
business rates relief and the VAT rate   venues now, then there is a serious
reduction on tickets have been very      risk that much of the summer live
welcome this year, and should be         music season will be cancelled.
extended for their full benefit to be
                                         Countries like Germany and Austria
realised. And if we are not allowed to
                                         have taken action to protect their
operate viably as sector, then there
                                         events industries and ensure they are
will be no option for Government but
                                         ready to help drive their recoveries
to extend the Cultural Recovery Fund
                                         – it’s vital that the UK does the same
and continue the various support
                                         and is not left behind. This report
schemes like furlough and SEISS.
                                         makes the case for action from
While this pandemic is still raging      Government now, and sets out a
and causing devastation to lives         blueprint for how we can Save Our
and livelihoods today, the rollout       Summer.
of the vaccine means there is light
at the end of the tunnel. Ministers

                                                             5
LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music
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
                                                          Pandemic restrictions have                               of the 2021 season will not happen
billion to the UK economy in 2019.1
                                                          significantly impacted the live                          either.
According to UK Music’s Music By
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
benefits of live music are spread                         wiped out. This has resulted in a
                                                                                                                   The best way to support and protect
across the whole of the UK and                            90.2% drop in revenue for festivals
                                                                                                                   the live music sector is to get it back
they are vital to supporting local                        in 2020, with potentially 50%
                                                                                                                   on its feet and enable it to start
economies and regional growth. Live                       redundancies in the workforce by the
                                                                                                                   generating income again. The focus
music attendance grew in 2019 and                         end of the year.3 Grassroots Music
                                                                                                                   must therefore be on how we get
given jobs in the cultural and creative                   Venues (GMVs) have seen a 75.2%
                                                                                                                   live performances happening again
industries will be particularly resilient                 fall in income with redundancies
                                                                                                                   at capacity. This means we must first
to automation, the long-term                              of 60.4% of the workforce being
                                                                                                                   demonstrate that we can effectively
employment prospects for the sector                       looked at.4 The impact has been
                                                                                                                   manage the health risk by taking
before COVID-19 hit looked bright.                        felt across the industry – up to
                                                                                                                   necessary measures to reduce the
The UK live music scene also brings                       80% of music creators’ income will
                                                                                                                   risk of transmission at live music
significant social and health and                         have been lost in 2020 and three
                                                                                                                   events, and secondly find a way to
wellbeing benefits and generates                          quarters of musicians may leave the
                                                                                                                   operate in the current landscape in a
huge soft power advantages. UK                            sector. The prospects of holding
                                                                                                                   way that is financially viable.
live music should be promoted and                         live events in 2021 are extremely
                                                          unclear. Social distancing, capacity                     Until a vaccine is fully rolled out,
championed by Government in
                                                          limits, and restrictions under the                       measures must be taken to manage
normal times, and protected and
                                                          tiered systems all mean that it is an                    the public health risk. The music
supported during this pandemic.
                                                          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
LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music
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
                                         as it seeks to get itself up onto its   to reduce the risk of transmission,
• For indoor events, the industry is
                                         own feet. To support the live sector,   and securing the right support from
  also proposing an enhancement to
                                         UK Music has a set of key asks of       Government to enable festivals to
  the Hands, Face, Space approach:
                                         Government:                             return in an economically viable way.
  Test, Clean, Prevent, which
  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

                                                             7
LET THE MUSIC PLAY: SAVE OUR SUMMER - JANUARY 2021 - UK Music
Fumi Kaneko as Princess Aurora in The Sleeping Beauty 2019 | The Royal Ballet, ROH - Helen Maybanks ©

                                                        8
importance of live music
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
to engage fans, build their fan base                       when operating at full capacity pre-      weekend in revenue*.9
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%). The GVA
                                                                                        5
                                                                                                     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. According to
                                                                                   6
                                                                                                     creative industries will be particularly
creators including composers and                           UK Music’s Music By Numbers 2020       7
                                                                                                     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                                                                  vibrant and dynamic sector with
                                                           The report also revealed that live
generated by licensing. This activity                                                                hugely positive long-term prospects
                                                           music attendance showed a strong
then generates revenue for the                                                                       – so strategic support would not just
                                                           increase in 2019, up by 11.1% to
Government through direct and                                                                        benefit the music industry as it looks
                                                           12.6 million in 2019, from 11.2
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                                                                    also benefit the wider economy.
                                                           were worth £4.7 billion to the UK
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
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

                                                                                      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
                                                           Festivals and music venues are                          in reopening the UK post-COVID-19
       over £27 million to a                               intrinsically linked to supply chain                    is emphasised by the broad
             local area                                    businesses in their local areas                         geographical spread of the sector
                                                           including technical freelancers,                        Venues and festivals of varying
                                                           catering providers and service                          scales such as the Manchester
                                                           suppliers (for example security).                       Arena in the North West, Sneaky
                                                           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
                                                           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
                                                           capacity festival can be worth over                     musical genres.
                                                           £27 million.13 Glastonbury generates
                                                                                                                   Our Music By Numbers report
                                                           over £100 million into the economy
                                                                                                                   highlights the rapid growth of music
                                                           of South West England each time it
                                                                                                                   tourism outside of London – for
                                                           takes place and music festivals as a
                                                                                                                   instance, the West Midlands saw an
                                                           whole employ over 85,000 people
                                                                                                                   increase of 19% in music tourists
                                                           directly.14
                                                                                                                   from 2018.17 The table on the next
                                                           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
                                                           event, £17 goes back into the local                     of the UK.18
                                                           economy, driving business for local
                                                           transport, hospitality outlets and
                                                           retailers.15 One Ed Sheeran gig in
                                                           2019 was worth £9 million to the
                                                           local economy of Ipswich.16
                                                           Given this synergy, implementing
                                                           a plan for the swift and safe return
                                                           of live music would not only boost

13
     Updated Optimy figures, AIF DCMS Select Committee Submission on Future 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
Number of music     Music Tourist
  Nation/Region                                                         Jobs Supported
                                  Tourists            Spend
  East Midlands                   516,000             £208 million      2,106
  East of England                 596,000             £212 million      2,545
  London                          4.1 million         £1.5 billion      10,697
  South East                      1 million           £553 million      5,371
  South West                      1 million           £528 million      6,402
  North East                      242,000             £60 million       662
  North West                      1.5 million         £477 million      4,976
  Northern Ireland                234,000             £81 million       901
  Scotland                        1.3 million         £453 million      4,757
  Wales                           440,000             £143 million      1,843
  West Midlands                   877,000             £252 million      2,453
  Yorkshire and the Humber        754,000             £264 million      2,918
UK Music, Music By Numbers 2020

                                                      for every £10 spent on
                                                      a ticket for a live music
                                                     event, £17 goes back into
                                                         the local economy
                                                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
greenfield festival in the world.19                      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.
popular.20 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
Dele Sosimi performong at Jazz Cafe | Justin de Souza ©

                                                          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
withdraw emergency worker support                            Stage has yet to be met. Pilots of                         limits for indoor and outdoor events.
from mass gatherings and introduce                           concerts with social distancing have                       At Tier 2 people are not allowed to
social distancing restrictions to                            demonstrated that it is not financially                    socialise indoors outside of their
control the COVID-19 pandemic                                viable for the vast majority of venues                     household or bubble, disincentivising
across England made it illegal to put                        to put on shows with profits not                           the attraction of live events. The
on live music events, be it outdoor                          exceeding operating costs.27                               “substantial meal” condition in
festivals or indoor concerts.                                The fact that is has been near                             connection to consumption alcohol
In May the Government placed live                            impossible for any financially viable                      also initially raised concern but this
music and related events at step 3                           music events to take place in 2020 is                      has subsequently been resolved.
in its COVID-19 recovery plan for                            also in part due to the second wave                        Under the highest tier, Tier 3, all
England, postponing the possibility                          of the pandemic which called for                           indoor entertainment must close
of any relaxations until at least 4 July                     renewed restrictions due to a rise                         with large outdoor events also
and effectively cancelling what was                          in transmissions. This includes the                        suffering a similar fate.
left of the traditional summer festival                      introduction on 14 September of the
season for 2020 in the process.                              “rule of six” restricting the number
On 25 June the Culture Secretary                             of people gathering, followed on
Oliver Dowden introduced a five-                             24 September by the 10pm curfew
stage roadmap to return to live                              limiting the time venues could be
performances in England. A route                             open.
back to live performances was of                             On 14 October a new three-tier
course welcome, but without solid                            system was introduced to manage
dates attached to it there was no                            regional and local disparities in
certainty for the sector.26 For a sector                     infection rates before a second
that depends on long-term planning                           month-long lockdown was
and lead in times the absence of set                         introduced in early November in
dates is an impediment to putting on                         England.
events.                                                      The Tiers system, which was
It is only at Stage 5 (performances                          strengthened following the
allowed outdoors with fuller                                 November lockdown, presents
audiences indoors) of the roadmap                            further challenges for putting on
when it may be possible to put on                            live events. Even at the lower risk

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
     outdoors but with a limited distanced outdoors audience) was delayed until 15 August.
27
     https://www.itv.com/news/london/2020-07-29/the-clapham-grand-pilot-concert-does-not-provide-blueprint-for-the-live-music-industry

                                                                                         14
In Northern Ireland, Scotland                                                                                                24% capacity in Tier 1 and 12%
                                                              • Festivals have faced severe
and Wales, a similar process has                                                                                             capacity in Tier 2.33
                                                                problems as a result of the
played out with periodic national
                                                                COVID-19 pandemic with the
lockdowns alternating with graded                                                                                           • The Cliff Edge report found that
                                                                closure of their main window
restrictions, (Alert Levels in Wales,                                                                                         76% of live music employees were
                                                                of operation from March to
Local Protection Levels in Scotland,                                                                                          supported by the Coronavirus Job
                                                                September. Over 90% of music
though Northern Ireland has                                                                                                   Retention Scheme as of 31 August
                                                                festivals scheduled for 2020
operated as a unit). These restrictions                                                                                       2020. Technical supply companies
                                                                have had to be cancelled, with an
are continually being revised in                                                                                              have seen revenue drop by 95%.34
                                                                average non-refundable cost of
response to the changing situation,
                                                                £375,000 and are forecasting 50%
however they all have placed severe                                                                                         • According to a survey by the
                                                                redundancies in the workforce by
restrictions on the performance                                                                                               Musicians’ Union, 70% of musicians
                                                                the end of 2020.30
of live music, where it has been                                                                                              are undertaking less than a quarter
allowed at all, making most music                                                                                             of their usual work and 71%
                                                              • The Music Venue Trust state
performances uneconomical.28                                                                                                  are either actively considering
                                                                that COVID-19 restrictions have
The following statistics further                                slashed capacities by 75% at                                  leaving the sector or are unsure of
underline the existential crisis that                           Grassroots Music Venues (GMVs),                               whether they will continue.35
COVID-19 restrictions have placed                               cutting trading hours by 50 to
on live music, festivals and the                                75%, limited both performances
associated ecosystem:                                           and performers, and introduced
 • UK Music’s Music By Numbers                                  significant additional costs
   2020 report concluded that up to                             on venues to present live
   85% of live revenue will be lost in                          events under severely limited
   2020, revenues have been close                               conditions.31
   to zero since March. According
   to a UK Music survey, 65% of                               • GMVs have seen a 75.1% revenue
   music creators’ income will be                               drop and are anticipating over 60%
   lost in 2020, rising to over 80%                             redundancies among staff.32
   for those most dependent on live
   performance and recording studio                           • Under existing the existing Tier
   work.29                                                      system in England Grassroots
                                                                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
33
     Music Venue Trust 2020
34
     https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf
35
     https://www.musiciansunion.org.uk/Home/Advice/COVID/take-action-pandemic

                                                                                         15
Duke Dumont at Creamfields UK 2019 | Anthony Mooney ©

                                                   16
recovery
How to get the Sector Back on its Feet
                                                                          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.

36
     Q 109 https://committees.parliament.uk/oralevidence/1049/pdf/

                                                                     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
measures must be taken to manage                        risk of transmission by improving           context.37 We continue to work with
the public health risk. The music                       airflows, but unless they are               Government to develop and update
industry has therefore been looking                     recognised or validated by                  this guidance as a priority.
at all options to reduce the risk of                    Government then there is no                 This ongoing work has allowed a
transmission. Our ongoing work on                       incentive for industry to invest in         limited number of festivals and live
mitigating the risk of COVID-19 in                      them.                                       events to restart.38 However, the vast
music spaces rests on three pillars:                                                                majority remain unable to restart
A. Guidance.                                       Guidance                                         and with festivals and venues still
    We are working closely with                    The four nations of the United                   deemed not safe enough to remain
    Government to develop guidance                 Kingdom each have their own                      open as restrictions have tightened,
    and clear protocols to enable live             rules and restrictions covering live             for example during the November
    music events to return safely, and             performances and festivals and these             2020 lockdown, more work is
    will continue this collaboration as            are regularly updated with regional              needed. From a health perspective,
    a priority.                                    variations. The current restrictions             ensuring that all individuals comply
B. Testing.                                        are defined by the Hands, Face,                  with HFS is difficult and from an
    We are committed to engaging                   Space (HFS) approach. This requires              economic perspective it prevents
    with the Moonshot programme                    regular handwashing, wearing of                  most festivals from reaching the
    and using rapid testing to                     face coverings and maintaining a two             capacity they need to be profitable.
    eventually bring back full capacity            metre distance from non-household                The ebb and flow of restrictions has
    crowds. This requires proof of                 members.                                         made it impossible for most festivals
    concept, conducting testing                    Engagement with Ministers and                    to go ahead in 2020. They require
    pilots with social distancing,                 Officials through roundtables and                long lead ins, and event organisers
    then gradually building up to full             workshops has produced useful                    have not had the confidence under
    capacity.                                      work on guidance to comply with                  HFS that they would be able to go
                                                   this. For example, this has included             ahead.
C. Ventilation & pathogen                          updating the Purple Guide, and                   While this has allowed some events
   reduction systems.                              developing guidance from all four                to go ahead the vast majority have
   We are looking at improved                      UK Governments on restarting                     not. According to the AIF, 90% of
   ventilation and other pathogen                  performing arts to help festivals and            festivals in 2020 were cancelled.39
   reduction systems. There are a                  other live music events to establish             The Cliff Edge Report found that only
   number of ventilation systems on                high level planning considerations               20% of pre-pandemic income has
   the market that reduce the                      which must be put in place when                  been secured.40
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/
     https://www.gov.uk/guidance/working-safely-during-coronavirus-COVID/performing-arts
     https://www.thepurpleguide.co.uk/
38
     https://edition.cnn.com/travel/article/social-distanced-music-festival-intl-scli-gbr/index.html
     https://www.huffingtonpost.co.uk/entry/ginburne-park-pop-up-socially-distant-festival-review_uk_5f1603a6c5b651977c053b08?guccounter=1&guce_
     referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvLnVrLw&guce_referrer_sig=AQAAAFCagMEgeLOAXN3M6Ch6-bsdErV524kzVtq85w9ItCCIeLUWnYlfLylWQZCaWu1avroec6c3a_
     O3M1Rrg3Bui7jrL3jfHBEQamnm0F06ztiqFmh8ON861W7Y1ALapUHhsxhazhc4FzJPHwIwMHJKDkJNcpkvrAO1rttUerbElbxW
39
     https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf
40
     https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf

                                                                           18
According to one study, festivals                        forcing asymptomatic carriers to take                 The MVT have done preliminary work
have furloughed 75.5% of staff,                          a test, alerting them to the fact they                on a possible app-based solution
GMVs 70.5% and larger venues                             COVID-19 positive and allowing them                   where an individual could use their ID
78.8%.41 Even in Tiers 1 and 2 in                        to self-isolate.                                      to create a profile (AI approved), and
England, which represent the most                        The safety focused members of the                     then store event tickets and their last
liberal controls in the UK as of                         Production Services Association                       COVID-19 result against their profile.
December 2020 Grassroots Music                           (PSA) have produced “quarantine                       This test would be conducted one to
Venues are operating at 24% capacity                     protocols” to protect staff and                       two hours prior to entry at a health
in Tier 1 and 12% capacity in Tier 2.                    freelancers. For the audience there                   centre near the event site.
To financially preserve the future of                    are a number of routes that could                     While we appreciate this cannot
these events and festivals through                       be followed. “Festival Republic’s                     be introduced overnight, allowing
the pandemic and to better protect                       Melvin Benn is continuing to develop                  more UK-based pilots for fully tested
public health, we would suggest                          work on his “Full Capacity Plan”                      events could be a game changer for
enhanced health approaches                               and conducting pilots of pre-event                    enabling the early return of festivals
are used to apply to non-socially                        testing in Estonia – if successful, this              with reduced COVID-19 restrictions.
distanced events. However, it                            could provide a blueprint for how to                  UK Music is committed to engaging
is critical that innovations and                         safely conduct full capacity events                   with the Government’s Moonshot
suggestions made by industry to                          here in the UK.43                                     programme and using rapid testing
make this possible have an impact on                     The #WeMakeEvents campaign have                       to eventually bring back full
Government guidance where their                          proposed a pilot event under Restart                  capacity events. This requires proof
efficacy can be demonstrated.                            Live using loop-mediated isothermal                   of concept by conducting testing
                                                         amplification tests (that have been                   pilots with social distancing, then
Testing                                                  labelled “highly effective” by NHS                    gradually building up to full capacity.
The Health Secretary Matt Hancock                        Trusts) to screen customers on site                   Trivandi, one of the global leaders in
has repeatedly made clear that large                     but before entry to allow for a non-                  the delivery and operation of major
scale testing is a key part of the                       socially distanced event.44 They have                 events and venues, has been working
Government’s COVID-19 strategy.42                        worked closely with North Greenwich                   closely with the Government to
To require testing before entering                       Safety Advisory Group and have put                    develop this work. The music
a festival or venue could in the                         forward a proposal for a pilot 2,500                  industry is engaging with this work,
long-term allow restrictions to be                       person event. We would hope the                       and is committed to doing whatever
relaxed inside venues and festivals,                     Department of Health and Social                       is necessary to make it a success.
as well as support the Government’s                      Care (DHSC) will strongly consider
overarching COVID-19 strategy by                         approving and supporting this pilot.

41
     https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf
42
     https://hansard.parliament.uk/Commons/2020-12-02/debates/FE328933-735C-48E9-9BF0-ED692E9CF8C4/CoronavirusVaccine?highlight=mass%20testing#contribution-
     468B52F8-92D9-4166-9E45-51A696A8B53D
     https://hansard.parliament.uk/Commons/2020-11-17/debates/67DE24F4-8F99-4229-B6CE-0A3F739C2FE3/Covid-19TestingPilotInLiverpool?highlight=mass%20
     testing#contribution-03D78CE3-EC8C-42F1-8338-BE0387C7CAA7
     https://hansard.parliament.uk/Commons/2020-11-17/debates/789ABA7D-9452-4771-847A-24BDC64D8F4C/TopicalQuestions?highlight=mass%20testing#contribution-
     22CFD8EA-29BD-4ADF-B36E-344BB00E0196
43
     https://accessaa.co.uk/festival-republic-md-announces-plan-to-use-events-to-incentivise-testing/ | https://committees.parliament.uk/oralevidence/819/pdf/
44
     https://www.gov.uk/government/news/clinical-evaluation-confirms-accuracy-of-lamp-test

                                                                                  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
                                                          officially recognising the impact             example, the MVT have drawn
reduction systems                                         they have on reducing the risk of             together a Test, Clean, Prevent
The return of indoor music is critical                    transmission in indoor spaces. Unless         approach.
to the sector as a whole. The sector is                   these innovations are recognised or           i. Test.
actively working to look at innovative                    validated by Government then there                 Exploit rapid testing to test
protective solutions.                                     is no incentive for industry to invest             people before they enter a venue
The MVT is actively involved with                         in them.                                           or festival.
trialling the use of UVGI/UVG systems                     The industry is keen to further               ii. Clean.
in pilot projects. These systems use                      develop a dialogue with DHSC (and                  If an infected person were to
UV light to deactivate airborne viral                     devolved Health Departments) and                   make it through the testing
pathogens by drawing air from a                           there have been productive trials                  system, cleanliness systems can
room and passing it under a UV light.                     involving DCMS and venues on other                 help prevent the spread of the
While seemingly novel technology,                         issues, such as the live audience trials           pathogen combined with vigorous
their use is backed by medical                            at the London Palladium.                           ventilation.
science. For instance, UVG systems
                                                          Similar pilots could trial this               iii. Prevent.
are recommended by the Centers
                                                          technology and if successful,                      Use preventative anti-viral
for Disease Control and Prevention
                                                          Government could provide a form                    technology to halt surface
(CDC) in the USA as part of
                                                          of recognition that would enable                   transmission including anti-viral
preventing the spread of COVID-19 in
                                                          venues (and other indoor spaces, like              wipes and surfaces.
an office.45
                                                          those in the hospitality sector) to           Global evidence from similar efforts
UK Music has also been in discussion                      open and operate safely without the           are positive. It should be noted that
with companies like CleanAir                              restrictions they see today.                  the German Restart-19 initiative
Spaces and BioTech Group, which                                                                         is already producing results that
                                                          As they are approved, and
use state-of-the-art air and surface                                                                    indicate that if hygiene concepts are
                                                          Government certified, the sector
purification technology to reduce                                                                       adhered to at live events impacts on
                                                          would look to draw them together to
the risk of COVID-19 transmission by                                                                    the pandemic are low to very low.46
                                                          produce economically viable festivals
continuously filtering and cleaning
                                                          and events. There are a variety of            Much of the groundwork has
the air and surfaces in an indoor
                                                          ways this could be done depending             already been put in place but needs
environment. There is growing
                                                          on the venue and space, as different          Government recognition for the next
scientific evidence backing these
                                                          spaces face differing COVID-19 risks.         stage.
types of systems and verifying the
effect they have on transmission;

45
     https://www.cdc.gov/coronavirus/2019-ncov/community/office-buildings.html
46
     https://www.iq-mag.net/2020/10/restart-19-results-events-could-take-place-pandemic/#.X8TzoWj7Q2w

                                                                                    20
The development of a variety                              venues and festivals certainty                         among the safest environments to
of potentially effective vaccines                         that it is possible for them to                        carry out social contact, and the
including the Modena, BioNtech/                           operate safely and profitably under                    various technologies and innovations
Pfizer and Oxford vaccine is excellent                    COVID-19. This would give them                         we are exploring will help deliver
news.47 However, we would urge the                        the business confidence to invest                      that.
Government to continue to engage                          in this technology while providing                     As an industry, we are working
with the industry on enhanced                             an opportunity for businesses and                      on multiple options to manage
measures and guidance that could                          freelancers to secure their future in                  the public health risk. However,
allow safe non-socially distanced                         the industry. We do not know how                       there is no clear mechanism for
performances to resume as soon as                         long the vaccine rollout will take,                    validating these various approaches
possible, and to certify any methods                      and with many younger people who                       with Government. We therefore
found to be effective.                                    often make venues and festivals                        recommend establishing a
We are keen to work as closely as                         viable being among the last to be                      taskforce that can advise,
possible with DHSC and the devolved                       inoculated, it is imperative we find an                evaluate and validate the various
Health Departments to achieve this.                       alternative to simply waiting for the                  innovations we are looking at
                                                          vaccine.                                               implementing. This has been very
It should also be noted that many
independent festivals and GMVs                            It is also crucial to stress that this                 effective for the sports sector,
will quickly reach a tipping point in                     work on improved ventilation                           with the Sports Technology and
terms of any additional cost and we                       and pathogen reduction systems                         Innovation Group. We recommend
would welcome further analysis of                         is important not just for tackling                     that Government does the same for
this approach in a festival-specific                      COVID-19 – it will have a dramatic                     the live performing arts sector.
context. The sooner live music events                     impact on reducing the transmission
can open without social distancing,                       of seasonal viruses, like flu. It
the sooner the sector will need                           also has huge relevance for the
less overt Government support.                            future. COVID-19 has generated an
Certifying safe ways of operating                         increased focus on globally spread
under an airborne pandemic will be                        diseases and there is growing
an important learning, and thereby                        speculation about where the next
future-proof the sector.                                  pandemic might come from.
Finally, there is the question of                         We do not know when the next
certainty. Certifying enhanced                            epidemic will hit us, but if and when
health approaches would give                              it does, the music industry will be
                                                          ready. We are determined to be

47
     https://www.gov.uk/government/news/pfizer-biontech-covid-19-vaccine-mhra-statement
     https://www.gov.uk/government/news/oxfordastrazeneca-covid-19-vaccine-mhra-statement-confirming-letter-received

                                                                                    21
Rae Sremmurd at Wireless Festival 2019 | James Bridle ©

                                                          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
place and with the enhanced health                         to the CRF.51 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

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
50
     https://concertpromotersassociation.co.uk/wp-content/uploads/2020/10/REPORT_UK-Live-Music-at-a-Cliff-Edge.pdf
     https://www.musiciansunion.org.uk/Home/Advice/covid-19/take-action-pandemic
51
     https://www.gov.uk/government/groups/culture-recovery-board
     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
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-
     COVID-recovery-strategy--2

                                                                                      24
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
a time for loosening restrictions.54                    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
to normality in Spring 2021.55 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                        to events going ahead.57                             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
A major barrier to the scheduling of                    by the Government, in addition to                    events and festival confidence to go
events is the inherent uncertainty                      an additional premium paid by the                    ahead with events in that period, we
around the progress of the pandemic                     insurance industry. This COVID-19

53
     https://hansard.parliament.uk/Commons/2020-12-01/debates/27DE3E44-807A-4596-AD7C-946314AC3E2A/PublicHealth?highlight=spring#contribution-34BA733A-859F-484F-
     B34A-2A1F30CB81BE
54
     https://committees.parliament.uk/oralevidence/1049/pdf/
55
     https://www.gov.uk/government/speeches/prime-ministers-statement-on-coronavirus-covid-19-2-december-2020
56
     https://www.gov.uk/government/publications/film-tv-production-restart-scheme
57
     https://www.theguardian.com/politics/live/2020/nov/26/uk-coronavirus-live-average-pay-covid-england-tiers-boris-johnson-scotland
58
     https://www.iq-mag.net/2020/10/e300m-umbrella-for-austrian-promoters/#.X9Dhodj7Q2w

                                                                                 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
underwrite the insurance, and with                                                                      always have done – but if we are not
                                                            The sector is not unviable, it has been
other countries taking action to                                                                        allowed to do so, then we will require
                                                            effectively closed-down all year by
protect their events industries it                                                                      additional economic support, either
                                                            Government instruction put in place
is vital that the UK does the same.                                                                     in the form of an extended CRF or
                                                            to preserve public health, either by
We would emphasise that this                                                                            a scheme like that proposed by the
                                                            law or by the economics of operating
issue is highly time sensitive – with                                                                   OneVoice campaign.
                                                            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                                                                 While many in the music industry
                                                            for the sector. Support like Business
lead-in time required. The same can                                                                     have helped by coordinating and
                                                            Rate Relief, the Coronavirus
also be applied to venues, with many                                                                    contributing to a range of hardship
                                                            Job Retention Scheme and Self-
stadium tours booked over a year in                                                                     funds supported by UK Music
                                                            employment Income Support
advance.                                                                                                members (including PPL, PRS for
                                                            Scheme (SEISS) has been critical.
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

59
     https://accessaa.co.uk/german-government-creates-e2-5bn-fund-to-cover-event-cancellation-costs/

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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
incomes.60 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
support have missed out on it.61                       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
                                                       Support must be extended until full                  to many live music businesses that
We have welcomed where devolved
                                                       reopening is possible.                               operate at very narrow margins.
Governments have been responsive
to gaps in support, such as the
Scottish Government's newly-self                       Extension to the VAT rate                            Rollover of the paid 2020
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
63
     https://www.ukmusic.org/assets/general/UK_Music_Submission_to_DCMS_Select_Committee_ImpactCOVID_7_May2020.pdf p. 6 and 10

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