The value of the UK’s powerhouse live music sector smashed through the £6 billion barrier for the first time last year, according to new analysis today.
The 2023 annual report from LIVE, the body representing the industry, said its contribution to economic output rose 17% in 2023 to a record £6.1 billion, more than a third higher than pre-pandemic figure.
London, which has some of the biggest venues in the UK, including the O2 in Greenwich, and Wembley Stadium, accounted for just over 30% of total live music revenue, followed by Manchester on 7.4% and Glasgow with 5.5%,
Major gigs in London last year included Elton John’s run of 10 shows at the O2 on his Farewell Yellow Brick Road Tour, and the UK leg of Beyonce’s Renaissance tour, which included five sell out nights at the Tottenham Hotspur Stadium.
The huge economic impact of live music has been underlined again this year by Taylor Swift’s Eras tour concerts, although the estimated £1 billion revenues from that are not included in today’s report, and the extraordinary frenzy to buy tickets for the Oasis reunion tour next year, which has pushed up prices to more than £350.
The report came as online travel agent, Opodo revealed a major spike in searches for flights to next year’s Oasis tour destinations Cardiff, London, Manchester, Edinburgh and Dublin on the day of the announcement of the reunion.
The report said last year’s increase in revenue came despite major challenges facing the industry, including high inflation, cost of living crisis and the huge barriers facing touring bands since Brexit.
LIVE called on the Government to cut the current rate of 20% VAT on tickets “which is damaging and uncompetitive compared to other European markets.”
The organisation said it supported the recommendation of the Culture, Media and Sport select committee’s report on Grassroots Music Venuespublished in May which said that Government should introduce a temporary cut to VAT to stimulate grassroots music activity while undertaking a full economic analysis of the impact of a cut to VAT on all concert tickets.
LIVE’s CEO Jon Collins, said: “Last year delivered significant growth for many sections of the live music ecosystem. We had some of the biggest names in music sell out tours and festivals across the UK, but we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face ofrising costs.
“We welcome the commitments made by the Government to put the creative industries at the centre of the UK’s economic growth plan.Reintroducing a lower rate of VAT on tickets would bring the UK into line with international competitors and would be pivotal in unlocking the economic potential of our industry. With a lower rate of VAT on tickets, we could see the sector grow further, supporting more jobs, generating more investment, and putting on more gigs, festivals and tours for people to enjoy.”
LIVE’s chair Steve Lamacq said: “Our live music sector is world-class offering concerts, festivals, gigs and more to suit every music taste. Last year, we saw much of the live music sector triumph over adversity; faced with a spike in costs as a result of inflation, the cost-of-living crisis and labour shortages, fans had more concerts and festivals than ever to enjoy.“However, we cannot forget that urgent action is needed to support the many grassroots venues, artists, and festivals which continued to struggle lastyear.”
