UK Music chief warns that music venues and studios face closure with out power payments help | Stay

UK Music chief govt Jamie Njoku-Goodwin (pictured) has warned that music venues, studios and different music companies face closure with motion to fight hovering energy payments. 

He’s calling on the federal government to chop VAT from its present 20% and lengthen enterprise price assist to provide a lifeline to music companies preventing for survival.

The power worth cap doesn’t apply to companies, which signifies that music venues are seeing their power payments improve by a median of a crippling 300%, and in some circumstances 740%, including tens of hundreds of kilos to their operating prices. 

Primarily based on a survey of its 941 venue members, the Music Venue Trust (MVT) has revealed that venues face a median 316% rise in gasoline payments, taking the typical gasoline invoice price to £5,179 per thirty days per venue – up from the present common of £1,245.

MVT is now warning that the surge in power payments signifies that round 30% of your complete community of venues face the specter of everlasting closure. One venue has been quoted £42,000 a 12 months for gasoline – greater than treble its earlier invoice of £13,200 – with the provider saying they’ll solely settle for full fee upfront.

The federal government has promised to assist home households hit by rocketing gasoline payments after power regulator Ofgem stated final week that typical family power payments will hit £3,549 from October 1. Nevertheless, ministers have but to supply any particular help to the music, leisure and hospitality industries. 

Jamie Njoku-Goodwin stated: “Spiralling power prices have created an existential risk for venues and music studios. It’s pressing that the federal government takes motion to help companies with the prices the are going through. All of us noticed simply how depressing life was with out dwell music through the pandemic, when venues have been closed for months – the excessive price of power payments might now shut them perpetually. The brand new prime minister should be certain that music companies are included within the help measures which might be introduced ahead to take care of hovering power prices.The federal government ought to have a look at slicing VAT and lengthening enterprise price help to assist music companies which might be preventing for his or her survival.” 

Music Producers Guild govt director Cameron Craig stated: “As an trade hit significantly arduous by the pandemic, we discovered simply how near the bone most impartial recording studios run financially. The unprecedented power price rises are simply one other physique blow to a sector simply discovering its ft in a post-pandemic restoration as soon as once more creating an unsure future. We name on the federal government to assist the recording sector or lose an integral a part of the UK’s cultural and inventive capital.”

Music Venue Belief CEO Mark Davyd stated: “Alongside the merely unaffordable will increase to prices, the federal government should urgently tackle the truth that the marketplace for power provide has collapsed. We’ve got a number of examples the place venues should not have any choice aside from to simply accept no matter worth will increase and tariffs are proposed by the only real provider ready to supply them energy in any respect. The scenario has quickly deteriorated right into a monopoly.”

For extra tales like this, and to maintain updated with all our market main information, options and evaluation, signal as much as obtain our day by day Morning Briefing newsletter