Bands halving their tour dates suggests music industry needs a VAT cut: Matt Cheshire

Culture Secretary Lisa Nandy has said that too many parts of the country have become ‘cultural deserts’, after more than 100 music venues also closed last year.

None of this makes positive reading.

But with previous headlines this summer celebrating huge tour wins for major stars like Taylor Swift, Coldplay and the announcement of the Oasis reunion, where is the balance between all the news?

Ticket prices have also been challenged, with the rocketing cost of the Oasis tickets tripling in price due to demand.

Disposable income feels as if it is at an all time low, and when people are paying such high figures for tickets, it leaves little spare for smaller events.

VIP Nation have appealed for a reduction in VAT on tickets, to try and help this situation, as even a reduction to 10 to 15 per cent would help, but we are awaiting an outcome on this challenge. France, Germany and Italy are all under 10 per cent for VAT, so why not the UK?

CEO of Live Nation, Michael Rapino, has responded to the ticket price debate, comparing music events to sporting ones. People pay literally thousands to attend Grand Prix around the world, so why not apply the same principles to music tours?

There is an obvious comparison that the location of some of these sporting fixtures are slightly more impressive than a park in Manchester, but Wembley for example does provide the wow factor.

Live Nation, who also own Ticketmaster, also posted a £22m loss however, so currently very few winning in this situation, except the bigger bands who are also facing spiralling costs.

They too however are also limiting the number of venues, with Coldplay only including Wembley and Hull within the UK on their 2025 tour.

One positive from their sales strategy is prioritising tickets for people living locally to Hull, to ensure they could attend.

Lisa Nandy also says that the loss of venues and limited locations is affecting a generation culturally too, with access to such events becoming only available to those who can afford it. In her wording, ‘pop is getting posher’.

So in the world of music, there are very few winners at the moment, and the cultural aspect is an important one. Music brings people together, it defines generations who listen to and enjoy it. It should be available to everyone.

It will be interesting to see what changes will happen in the next 12 months, and if the VAT change does come into fruition, what impact that will have. What is very apparent though, is that a divide is beginning to emerge between bigger and smaller bands and concerts, the question is can we fill the void, or will it only deepen?

With the surge of big acts performing at huge venues across the UK next year, what will the new year bring when the festival dates are announced, and so many people have already spent up? Only time will tell.

Matt Cheshire is CEO at The Needs Group