Live music levy 'would need to be set in tablets of stone'

One of my Business Voices columns in April examined the case for introducing a ticket levy to the price of all major stadium and arena gigs in the UK. The Music Venue Trust, which is behind the proposal, said the cash raised by the levy would be used to help the many small outlets struggling at the lower end of the venue food chain.

And help they most certainly need, given the perilous financial position many grassroots venues find themselves in. A survey by the MVT said that while the remaining 835 members of the Music Venues Alliance staged more than 187,000 events in 2023, generating over £500m in revenue, those venues made a profit of just £2.5m – a margin of 0.5%.

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As my column noted, the levy proposal has been welcomed by industry figures in Scotland. The Night Time Industries Association in Scotland told The Herald that it “wholeheartedly” endorses the “call for a support mechanism for businesses grappling with soaring operational costs”, declaring: “The plight of independent and grassroots venues cannot be overstated in this crisis.”

With 123 venues closing in the UK last year, including the renowned Bath Moles and the Chameleon in Nottingham, and continuing to shutter at a rate of two per weeks, talk of crisis is not overdone.

At stake are venues which play an important role in the economic ecosystems of towns and cities and, from an artistic perspective, provide vital stepping stones for bands.

It is grassroots venues that offer fledgling bands and singers their first opportunities to play before an audience and hone their craft. But where would such acts begin if these outlets disappear?

The idea of a levy for grassroots venues was also welcomed by one of the best-known names on the Glasgow music scene. Donald MacLeod, managing director of Hold Fast Entertainment, owner of the Garage and Cathouse venues in Glasgow and promoter CPL, told The Herald that he supports the idea of a levy in principle.

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However, he said any levy would have to be underpinned by legislation and, echoing the NTIA, declared that several key questions would have to be answered first.

Mr MacLeod said: “It would need to be set in tablets of stone, and who has that power? Is it the UK Government or Scotland? Can it be a devolved matter?

“The French model, with 3.8% of gross ticket sales going into a fund, is possibly the best model. But who is going to govern and administer that fund? And what is the application process going to be like?”

Another of my columns in April dealt with a related theme, with the article expressing support for plans from the Scottish Event Campus to build a new, bigger conference centre on the banks of the Clyde. Peter Duthie, chief executive of the SEC, said building such a facility next to music venues the OVO Hydro and SEC Hydro and current conference location the SEC Centre would allow the destination to attract “blockbuster events”.

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My piece acknowledged that Mr Duthie’s call for public investment in the project could meet opposition but agreed with his assertion that the project could quickly begin to pay for itself.

The piece also made the point that the SEC has the pedigree to make it work.

“If Mr Duthie and the SEC did not have a track record of success in delivering major infrastructure projects, it would be easy to dismiss such a bold claim,” the column stated.

“But the fact is the SEC has very clearly demonstrated its nous in this area, given the outstanding impact that the OVO Hydro has had on the city over the last decade.

“The Hydro is now arguably the pre-eminent live music venue in Scotland, attracting shows from the biggest names in the global entertainment industry as a matter of course.”

This article was first published in The Herald's Business HQ Monthly supplement