Why is the government taxing a rescue fund for struggling music venues?

In 2025, a gig took place every 136 seconds, generating more than £7 billion for the UK economy. Major artists such as Oasis, Dua Lipa and Coldplay played sold-out arena and stadium shows across the country, creating lasting memories for fans.

But every major artist selling out arenas and stadiums started somewhere smaller. They started in grassroots venues, working with independent promoters, travelling from town to town and learning their craft in front of small audiences.

Unfortunately, the grassroots live music sector is under significant strain. Promoters, artists, venues and festivals face rising costs, pressure on audience spending and a lack of investment in existing and emerging talent. That makes LIVE Trust's progress all the more important.

In consultation with Government, LIVE Trust was established to create a long-term way of supporting grassroots live music. Larger events and shows voluntarily donate £1 from each ticket, which LIVE Trust distributes to programmes helping to keep venues open, festivals running, artists on the road and the people behind live music in work.

Since LIVE Trust launched in January 2025, more than six million tickets have been pledged across 114 tours and 440 shows, including Harry Styles’ recent Together Together tour. That money is already reaching the grassroots. LIVE Trust distributed £500,000 in its first funding round, helping 372 venues, 211 shows and 81 festivals across the UK. In July, we provided a further £1 million, supporting programmes run by the Featured Artist Coalition, Music Venue Trust, the Association of Independent Festivals and the Association of Independent Promoters.

The funding provides support for venues at risk, emerging artists trying to make touring viable, independent festivals and promoters, young people building careers in music, technical professionals, and programmes improving accessibility and opportunity.

The model is working, but there is an opportunity to make it work even better. 

We’re asking Government to address barriers to participation, including by removing VAT from donations to LIVE Trust. Under the current system, Government is the single biggest beneficiary of this fundraising, rather than the grassroots organisations the money is intended to support. For every £500,000 raised, £100,000 is taken in VAT. Put another way, gigs are being played to the Treasury, not fans.

We want every possible pound to reach the grassroots live music scene. The Government could do that by exempting donations to LIVE Trust from VAT or matching the VAT collected through other means. There is precedent for this, with the Treasury taking action over VAT receipts from Band Aid’s anniversary single in 2014.

With the Autumn Budget approaching, there is an opportunity to build on what Government and industry have already achieved together. Andy Burnham understands better than most the importance of live music to the UK’s culture and economy. I can personally attest to that, having stood alongside him in a monsoon watching Red Rum Club.

The Prime Minister knows that the UK’s success depends on growth in every postcode. Live music can drive that growth in regions, towns and cities across the country. The desire to attend gigs remains strong among Brits and international visitors alike. Our sector is vibrant and culturally essential, but its long-term success will depend on how effectively industry and Government work together to protect and support the grassroots on which it is built.

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Jon Collins is CEO of LIVE.

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