Grass-roots Music Venues

Lord Livermore Excerpts

Monday 26th January 2026 Lords Chamber

[Lord Bassam of Brighton]

To ask His Majesty’s Government what assessment they have made of the impact of the 2025 Budget on grassroots music venues.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, we are introducing permanently lower tax rates for eligible retail, hospitality and leisure properties, including grass-roots music venues, worth nearly £1 billion a year. As part of the changes to business rates, we announced a £4.3 billion support package to protect those facing higher bills after revaluation. We have also more than doubled funding to support independent artists and grass-roots music venues as part of the music growth package, building on the UK’s strength as a world-leading creative industries destination.

[Lord Bassam of Brighton (Lab)]

My Lord, that is a very welcome response from the Minister, but I wonder what assessment His Majesty’s Government have made of forecasts that increased business rate valuations could result in a closure of between 80 to 120 grass-roots music venues and place a further 120-plus at risk. How do the Government square this with their welcome commitment to high street regeneration, creative sector growth, the night-time economy and protecting cultural infrastructure? Will the Minister agree to meet representatives from the sector to discuss the issue further?

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[Lord Livermore (Lab)]

I am grateful to my noble friend for the question. I am very happy to meet the groups that he mentioned. He is absolutely right to say that the creative sector is extremely important to the UK economy. It is a major employer and a significant part of our economy. It has been included as a priority sector in our industrial strategy, recognising its high growth potential, particularly through the development and adoption of new technologies.

On business rates, which my noble friend raised, as I have said before in your Lordships’ House, I acknowledge that the revaluation means that sectors such as pubs and music venues will struggle in relation to the business rates applicable to them. That is why we are working with the sectors involved to ensure they get the support they need. Noble Lords will have heard what the Prime Minister and Chancellor said on this in recent days. I will not add to that or comment on any speculation, but where there are further comments to be made I will of course come back to your Lordships’ House to discuss them.

[Lord Clement-Jones (LD)]

My Lords—

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[Lord Clement-Jones (LD)]

My Lords, given that the Music Producers Guild reports that 50% of recording studios are considering closure within the year, with rateable value increases of up to 100%, will the Minister commit to urgently reviewing their exclusion from the retail, hospitality and leisure multiplier, and their misclassification as office space by the Valuation Office Agency, particularly given that film studios, which are similarly not public-facing, already benefit from 40% targeted relief?

[Lord Livermore (Lab)]

The Government have been very clear that the lower multipliers will broadly reflect the scope of the current retail, hospitality and leisure business rates relief, which is centred around retail, hospitality and leisure properties that are reasonably accessible to visiting members of the public. If a recording studio forms part of a single property with a qualifying hospitality or retail business, and the hospitality or retail aspect is the main purpose of the property, it will qualify for the lower multipliers.

[Lord Vaizey of Didcot (Con)]

My Lords, the whole House will agree that music venues are a vital part of our cultural ecosystem. Music venues are now benefiting from a voluntary grass-roots levy levied on concert tickets, which I understand the Government are keeping under review with a view to introducing a statutory levy. The Government are also talking about a tourist tax. I suspect I know what the Minister’s answer will be, but would it make sense to roll up consultation on a tourist tax and a ticket levy into one single tax?

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[Lord Livermore (Lab)]

I do not think so. I shall repeat what my right honourable friend Ian Murray, the Culture Minister, said on the industry levy:

“My ambition is to see the voluntary levy in place for as many concerts as possible and, as a milestone in that progress, for at least 50% of tickets on sale for stadium and arena shows in 2026”


to have adopted the levy by 31 December.

“Following this, I would like to see this target brought as close to 100% as possible”.

[The Earl of Clancarty (CB)]

My Lords, further to the question asked by the noble Lord, Lord Clement-Jones, is the Minister aware that as well as the possibility of closures, there is the danger that our recording studios may up sticks and move abroad? With the continuing effect of Brexit on the music industry, unfortunately, they will not need a great deal of encouragement.

[Lord Livermore (Lab)]

As noble Lords will know, I am very happy to agree with the noble Earl on the last point he raises: the incredibly damaging effect of Brexit on that sector in particular. He will like to know that, along with the EU, we have jointly recognised the value of travel and cultural artistic exchanges, including the activities of touring artists, and we will continue our efforts to support travel and cultural exchange. We will explore how best to improve arrangements for touring across the European continent with the EU and other EU member states.

[Lord Brennan of Canton (Lab)]

My Lords, the Minister will be aware that I am leading a fan-led review of live music as commissioned by the Culture Committee in the House of Commons. One of the things that comes clearly from fans’ voices is that they are happy to pay a levy if they know it is going to grass-roots music venues in order to support them, unlike the obscure levies they sometimes have to pay, or other service charges on top of ticket prices. With that in mind, will the Government commit in the forthcoming ticketing legislation to include taking powers for a statutory levy just in case the voluntary levy does not work out?

[Lord Livermore (Lab)]

I am very grateful to my noble friend for the work he is doing in the review he mentions. I do not think it is for me to commit the Government to that specific point, but I will of course take it back and discuss it with colleagues in other departments as well.

[The Lord Bishop of Hereford]

My Lords, I thank the Minister for his answers. Across the country, churches provide the largest network of performance spaces available to professional and amateur groups for music making and other artistic endeavours, so I thank him for the recent announcement regarding the new places of worship renewal fund. But I am sure he will be aware that there are thousands of churches and other faith communities across the country waiting to know how that scheme will operate. Will the Minister let us know when the details of the scheme will be published and whether the Government will work with us to ensure the scheme is workable, consistent and fair, especially in the levying of VAT?

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[Lord Livermore (Lab)]

I am grateful for the support that the right reverend Prelate set out in his question. I assure him that that will be responded to very shortly.

[Baroness McIntosh of Pickering (Con)]

The Minister will be aware that music venues contribute hugely to growth, particularly in market towns and cities, and that the night-time economy suffered greatly during Covid. Will he discuss with his colleagues the impact that the agent of change principle is having, especially when it is not followed to the letter, where poorly soundproofed residential developments are built in close proximity to an existing music venue? It can force a music venue to close down, despite it being very popular.

[Lord Livermore (Lab)]

I will absolutely do what the noble Baroness asks. The Government have heard exactly what she said: that the existing policy to mitigate the impact of development on existing activities, including live music, is not always applied effectively. The creative industries sector plan committed to improving the implementation of the agent of change principle. MHCLG’s current consultation on the National Planning Policy Framework proposes that the policy be more explicit about the matters to be considered, such as both the current and permitted levels of activity within existing uses, which includes licensing for music and cultural venues. This will enable decision-makers to consider the right information early on, addressing the conflict between new and existing development.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, live music venues are the R&D incubators for our creative industries. Some 53% of venues made no profit last year, and the Government’s choices on national insurance contributions and business rates have given them an additional tax bill of £7 million. At a recent helpful meeting with the noble Baroness, Lady Twycross, a number of noble Lords met representatives of music venues who said that one of the difficulties is hearing different things from the Treasury and from the Valuation Office Agency. So regarding the meeting the Minister’s kindly agreed to on behalf of the noble Lord, Lord Bassam, may I encourage him to bring along somebody from the Valuation Office Agency to help clarify the situation for these vital parts of our grass-roots music sector?

[Lord Livermore (Lab)]

I am not in a position to promise who specifically will attend the meeting, but I will absolutely take that representation back to the department to see if it is possible. I agree with the noble Lord on the importance of music venues; as he says, they are the R&D incubator for the rest of the sector. As part of the industrial strategy, the Government have recognised music and performing and visual arts as a priority sub-sector, and we have recognised the potential for growth. The UK is the third biggest music market globally. As you all know, as part of the music growth package, we are backing the next generation of British talent by doubling funding to support independent artists and grass-root music venues.

[Lord Spellar (Lab)]

My Lords, can the Minister take back to Whitehall the very clear message on the importance of the music industry, including for Britain’s place in the world, that he has identified? No one starts their career playing the O2; they learn their trade—particularly how to relate to an audience—by playing the small venues, night after night. This is hugely important for our soft power but also for a significant part of our economy. Is that understood in Whitehall?

[Lord Livermore (Lab)]

I hope it is understood. I agree with much of what my noble friend says. He will know that we have provided £2.5 million of funding this year for Arts Council England’s Supporting Grassroots Music Fund, enabling grass-roots music venues, recording studios, promoters and festivals to apply for grants to develop new revenue streams, make repairs and improvements, and enhance live music experiences.