UK Music Responds To Chancellor's Budget

15 March 2023 - Press release

Responding to Chancellor Jeremy Hunt's Budget, UK Music Deputy Chief Executive Tom Kiehl urged the Government to seize the chance to help boost the UK music industry and highlighted where further support was needed. 

 

UK Music Deputy Chief Executive Tom Kiehl said:
"We are glad the Government has listened to the calls from UK Music and our members for the orchestra tax relief to be extended. However, there is still a serious threat from the planned BBC cuts to orchestras which we want to see reversed.

"We remain firmly opposed to the need for a broad exception to copyright for text and data mining and are unconvinced of the need for new legislation in this area. 

"We will continue to engage constructively with the Government's plans to provide clarity on the application of intellectual property law to the AI sector.

"With the continued pressure on venues and studios, it's disappointing that the Government did not offer any further direct support on business rates, VAT and energy bills.

"We would urge the Government to back the remaining parts of our eight-point plan that UK Music and our members have drawn up to help turbo-charge the music business and drive economic growth.

"The music industry can play a vital role in helping spearhead growth, but we need Government help to deliver thousands of new jobs, to boost UK exports and support music education."

As the collective voice of the music industry, UK Music devised the eight-point blueprint for the Government to help ensure the sector retains its competitive edge and continues to grow.

 

The proposals in the plan are:  

• Energy Bills: Give more support to venues, studios and music spaces hit by soaring energy bills.
• Business Rates: Ease the tax burden on music businesses by reducing business rates on live music venues and studios.
• VAT: Cut VAT on live events, such as music and theatre events, to 5% to bring UK more in line with EU nations and help stimulate live music.
• Fiscal Incentive: Create a new tax relief for the music industry like those enjoyed by film and TV to boost music production.
• Export office: Set up a new music export office to drive British music exports and help future talent grow their international audiences.
• Orchestral Tax Relief: Extend the 50% uplifted Orchestra Tax Relief (OTR) rate and boost the sector by ditching plans to cut the rate to 25% by 2024.
• Arts Pupil Premium: Deliver on the manifesto pledge to introduce this extra support to help all students access music education.
• Transitional Support Package: The Government should set up a fund to help the music industry deal with the extra costs of leaving the EU and the impact of Brexit on touring UK musicians and crew.