UK festivals at “vital” level, with out VAT discount from authorities

A brand new report has proven that music festivals throughout the UK shall be reaching a “vital” level if they don't get a VAT discount from the federal government.

The report was shared by the Affiliation of Impartial Festivals (AIF) – a commerce affiliation representing the pursuits of 101 UK music festivals – and revealed that with out intervention and help from parliament, festivals throughout the UK shall be set to be misplaced.

In accordance with the analysis, a minimum of 36 festivals have been cancelled earlier than they have been as a consequence of happen in 2023 – particularly as a consequence of financial pressures between gross sales and prices. The problems have since continued into 2024, with six extra festivals having already been cancelled together with Dumfries’ Doonhame Festival, NASS, Nottingham’s Splendour and Barn On The Farm.

Now, the affiliation has launched a brand new ‘5% For Festivals’ marketing campaign – in search of to tell festival-goers in regards to the issues that music pageant promoters have confronted during the last 5 years and encourage them to contact MPs to push for a VAT discount on tickets.

The marketing campaign additionally features a web site that outlines the issues promoters are going through and gives music followers with instruments to write down to their MPs in regards to the VAT discount. Discover out extra here.

“We actually are at a vital level for the UK’s pageant sector. 5 years in the past, it will have been inconceivable to think about that promoters must endure one thing as damaging because the Covid-19 pandemic – however a lot of them did, with out passing the inevitable price onto the buyer,” mentioned AIF CEO John Rostron.

“To suppose that, since then, they've needed to handle the results of Brexit, battle in Ukraine, inflation and an power disaster is staggering. That festival-goers have been capable of get pleasure from among the unbelievable occasions they did in 2023 is testomony to the resilience and keenness of these promoters. However we misplaced 36 festivals final 12 months, and with six festivals having postponed exercise in 2024 or closed the gates for good, we're on monitor to see nicely over double the variety of casualties this 12 months.”

‌“UK festivals want time to get better and rebuild. They need assistance from our Authorities,” he continued. “A discount in VAT on pageant tickets from 20 per cent to 5 per cent for 3 years is an evidence-based, easy, smart treatment that might ease the monetary burden on promoters sufficient for them to return to well being. We want this motion now.”

The findings by AIF coincide with a latest report shared by NME’s Andrew Trendell, which regarded into the growing decline of festivals throughout the nation and explored the elements concerned.

In accordance with Barn On The Farm pageant co-manager Oscar Matthews, who spoke to NME, the aftermath of COVID was one of many main elements that put pressure on promoters.

“COVID had a extreme influence on so many various sectors on so many various methods, and there must be a short-to-mid-term help package deal in place for festivals and occasions when it comes to a discount within the VAT charge on ticket gross sales,” he mentioned.

“The recognition of various genres of music adjustments on a regular basis, however the two or three years the place the younger era who grew up by way of COVID and weren’t capable of entry reside music in the best way that they have been earlier than has had this knock-on impact.”

Rostron agreed, telling NME: “The primary cause was financial and monetary pressures… It comes from a combination of rising provide chain prices, and in the event that they weren’t promoting as many tickets – even by a small proportion – the distinction on the rise in costs and issue in phrases now in place meant they needed to cancel.

“A variety of festivals occurred the place every thing regarded good on the floor. The purchasers got here, had fun, the bands performed, however the festivals really misplaced cash. A few of them are in issue or is likely to be in issue if there isn’t a very good wind. That’s very worrying. These festivals are round and don’t seem like on hearth, however perhaps they're.”

He continued: “A couple of massive ones like Glastonbury can afford to considerably enhance their ticket costs, most of them can’t go up an excessive amount of due to the price of dwelling disaster and being inexpensive.

“They thought they’d come again a 12 months later to bounce again, however they used up all their reserves throughout COVID, they usually now additionally should repay their loans and money owed taken out over that interval on prime of rising prices,” he defined. “That’s the unbelievable COVID legacy. If we’d have come out of COVID and there hadn’t been Brexit, an power disaster, a battle and different issues then we might have re-emerged into one thing extra like 2019.”

Alex Lee Thomson, Director of Inexperienced Home Group – which coordinates strategic digital advertising campaigns for artists and festivals together with Barn on the Farm, Rockaway Seashore and 2000Trees – additionally agreed that COVID had prevented a brand new era of music followers from getting indoctrinated into festivals, and that organisers may want new concepts to deliver them in.

“The pageant tradition, particularly amongst youthful folks, has declined,” he mentioned. “Partly that’s right down to 17 to 20-year-olds shedding their swing into the pageant expertise over lockdown, which was inherited culturally from their older mates or household.