Industry heads call on Government to freeze VAT on tickets
Leading live event professionals have called on the Government to maintain the 12.5 % reduced VAT rate on tickets until at least the end of 2022 .
A temporary reduced VAT rate of 5 % was announced on 8 July 2020 and was applied from 15 July 2020 to 30 September 2021 . A reduced 12.5 % rate has been in place since 1 October 2021 , but is due to end on 31 March .
UK Music chief executive Jamie Njoku-Goodwin said it is crucial for the live sector that the VAT rise is cancelled : “ Our industry has been hammered over the past 22 months and still faces huge levels of uncertainty – the last thing we need now is a tax hike . We want to play a positive role in the wider economic recovery but raising VAT on our sector is not the way to do that – we should be cutting VAT to support what is still a fragile recovery , not increasing it .”
Isle of Wight Festival ( cap . 55,000 ) promoter John Giddings agreed , pointing out that the event ’ s costs are rocketing and it is not possible to charge more for tickets : “ Many shows still have 2020 ticket prices , when there was no virus or need to pay for
protection against it .” Standon Calling ( 17,000 ) festival owner Alex Trenchard said the impact of the Omicron wave makes for a strong argument to reintroduce the 5 % VAT rate : “ Omicron is creating massive labour shortages and the emergency rate will help us with inflationary cost pressures that upset a business model based on fine margins .”
Geoff Ellis , CEO of Scotland ’ s DF Concerts , whose events include the 50,000-capacity TRNSMT festival , also called for a cut rather than a rise in the current VAT rate : “ March 2022 is now definitely not an appropriate time to stop the VAT relief .”
Vision Nine festivals director Kevin Moore , who oversees festivals including Boardmasters ( 50,000 ) and NASS ( 15,000 ), said a delay to the rise in VAT on tickets would be of huge benefit to the festival sector : “ Prices of kit aren ’ t coming down anytime soon and there is only somuch cost that can be passed onto the consumer . For the 2022 season at least , an extension of the VAT window could provide a lifeline for some festivals .”
Industry views
“ The successful venues will be those that deliver the efficiency of the new technology without a reduction in customer care and experience , and who can deliver it elegantly .”
Ascot head of venue operations Joanna Wales on the introduction of contactless self-service at venues .
“ Technology will be critical in our aims to become more sustainable , but technology is the not a silver bullet , we must look at everything we do through a different and more understanding lens .”
Production Services Association chairman and interim general manager Dave Keighley
“ Music is a priority for the public , so it should be a priority for politicians too .”
UK Music Chief Executive Jamie Njoku-Goodwin on the profound emotional connection the public has with live music and the need to emphasise that to government .
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