28 Jan 5% For Festivals
The Problem
Music Festivals are in a Pinch. One in six festivals did not make it through the pandemic.
They ran in 2019, closed for the pandemic in 2020 and 2021, and haven’t had a few steady seasons back to be able to rebuild. Some temporary support from the UK Government – lowering VAT down from 20% to 5% on ticket sales for the next three years, would give them the space they need to recover and rebuild.
The music festivals that did survive, either did so by using up all their reserves or savings; by taking on loans to help carry them through; or through financial support from the Government’s Cultural Recovery Fund.
The 2022 Return
When festivals returned in 2022, they did so with tickets they had sold in 2019 and then rolled over through the pandemic. Those had been set at 2019 prices on 2019 budgets. Yet by the time they actually delivered the events in 2022, the pandemic – and all of its impact on the events sector had happened – as had some of the big impacts of the UK leaving Europe.
Productions costs had rapidly escalated, artists touring costs had risen; many freelancers – either because of the pandemic, or because of new restrictions on moving from UK to Europe because of Brexit – had left the events industry, and the skills shortage played havoc on costs.
Festival costs went up and up, on average, by over 30%.
Help us to Help Festivals
Without doubt, many more festivals will be forced to make 2025 their last stop if there isn’t intervention now from the UK Government.
Some temporary support – lowering VAT down from 20% to 5% on ticket sales for the next three years – is all that’s needed to give them the space they need to recover and rebuild.
How can the Government Help?
Imaginators are asking the UK Government to lower VAT on music festival ticket sales from 20% to 5% for a temporary period of three years. This single change will be enough to enable festivals to rebuild and recover and the impact on the supply chain will not be so negative.
The UK Government lowered VAT during Covid to help support the events sector. It made a huge difference. We’re asking them to do that again.
As it stands, the UK’s VAT for Culture is significantly higher than other countries. In France it’s 5.5%; Sweden 6%; In Germany it’s 7%; Italy 10%, Finland 10% and Ireland 13.5% to name a few.
This campaign was founded by the Association of Independent Festivals on behalf of their 101 festival members.
Imaginators support the Association of Independent Festivals and the ‘Five Percent for Festivals’ campaign.