UK Music Chief Executive has warned music
venues, studios and other music businesses face closure without
swift action to combat soaring energy bills.
He is calling on the Government to cut VAT from its current 20%
and extend business rate help to give a lifeline to music
businesses fighting for survival.
The energy price cap does not apply to businesses, which means
that music venues are seeing their energy bills increase by an
average of a crippling 300%, and in some cases 740%, adding tens
of thousands of pounds to their running costs.
Based on a survey of its 941 venue members, the Music Venue Trust
(MVT) has revealed venues face an average 316% rise in fuel bills
- taking the average fuel bill cost to £5,179 per month per venue
- up from the current average of £1,245.
MVT is now warning that the surge in energy bills means that
around 30% of the entire network of venues face the threat of
permanent closure.
One venue has been quoted an eye-watering £42,000 a year for fuel
- more than treble its previous bill of £13,200 – with the
supplier saying they will only accept full payment in
advance.
It is a similar story for businesses right across the music
industry. One major London recording studio expects its gas bill
to rise by 600% and its electricity charge to rise by 80%,
according to the Music Producers Guild (MPG). (See notes
to editors for two recording studio case studies)
Some businesses are struggling to even find fuel suppliers after
their previous energy firm collapsed.
Pre-pandemic, the UK music industry contributed £5.8 billion to
the economy and supported almost 200,000 jobs. The sector is
still in recovery after taking a huge hit due to the impact of
COVID-19-enforced shutdowns.
The Government has promised to help domestic households hit by
rocketing fuel bills after energy regulator Ofgem said last week
that typical household energy bills will hit £3,549 from October
1.
However, ministers have yet to offer any specific support to the
music, leisure and hospitality industries.
warned venues, studios
and other music companies across the UK now faced an “existential
threat” due to fuel crisis and urged the Government to take
immediate action.
UK Music Chief Executive said:
“Spiralling energy costs have created an existential threat for
venues and music studios. It’s urgent that Government takes
action to support businesses with the costs the are facing.
“We all saw just how miserable life was without live music during
the pandemic, when venues were closed for months – the high cost
of energy bills could now close them forever.
“The new Prime Minister must ensure that music businesses are
included in the support measures that are brought forward to deal
with soaring energy costs.
“The Government should look at cutting VAT and extending business
rate support to help music businesses that are fighting for their
survival.”
Music Producers Guild Executive Director Cameron Craig
said:
“As an industry hit particularly hard by the pandemic, we found
out just how close to the bone most independent recording studios
run financially.
“The unprecedented energy cost rises are just another body blow
to a sector just finding its feet in a post-pandemic recovery
once again creating an uncertain future.
“We call on the Government to help the recording sector or lose
an integral part of the UK's cultural and creative capital.”
Music Venue Trust CEO Mark Davyd said:
"Alongside the simply unaffordable increases to costs, the
government must urgently address the fact that the market for
energy supply has collapsed."
"We have multiple examples where venues do not have any option
other than to accept whatever price increases and tariffs
are proposed by the sole supplier prepared to offer them power at
all. The situation has rapidly deteriorated into a
monopoly.”
