UK live music’s contribution to economy soars 35% above pre-pandemic levels, despite crisis among small venues, says new report

Despite an ongoing crisis in the UK’s small venues – with an average of two small venues closing each week – the country’s live music business has hit new heights, with the sector’s contribution to the economy in 2023 exceeding GBP £6 billion for the first time (USD $7.46 billion at the average exchange rate for the year).

That’s according to a new report from industry group LIVE, released on Wednesday (September 4), which showed live music recovering from the Covid-19 pandemic slump, with its economic impact up by 17% year-on-year, and up 35% from 2019, the last full year before the pandemic.

The industry managed to tackle “challenges including high inflation, the cost-of-living crisis, and post-Brexit touring issues,” the report noted.

London accounted for 30.6% of the UK’s live music revenue, followed by Manchester at 7.4% and Glasgow at 5.5%. Other markets in the top 10 for live music revenue included Edinburgh, Birmingham, Cardiff and Belfast.

Live music supported nearly 230,000 jobs in the UK in 2023, up by 9.4% since 2019, the report found. The expansion was driven largely by the concert sector, which accounted for 73.5% of the growth seen in 2023.

“2023 delivered significant growth for many sections of the live music ecosystem,” LIVE CEO Jon Collins said.

“We had some of the biggest names in music sell out tours and festivals across the UK, but we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs.”

“We had some of the biggest names in music sell out tours and festivals across the UK, but we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs.”

Jon Collins, LIVE

Earlier this year, the UK’s Music Venue Trust said that, in 2023, an average of two “grassroots” music venues shut down in the UK every week. These venues, which have an average capacity of just over 300, are crucial for the development of new music acts.

“There are more people going to live music concerts… than there’s ever been before. But the reality is that the cost of putting on new and emerging talent –  artists that are trying to find their audience for the first time, maybe their first tour, maybe even their first gig – those are the [shows] that are the least affordable, that are losing the most amount of money,” Music Venue Trust founder and CEO Mark Davyd told MBW.

LIVE’s report calculates that 126 grassroots venues shut down last year, and 36 festivals were cancelled.

LIVE has thrown its support behind a recommendation, made earlier this year by a UK parliamentary committee, to reduce the 20% value-added tax (VAT) charged on tickets, which LIVE says is “damaging and uncompetitive compared to other European markets.”

“Reintroducing a lower rate of VAT on tickets would bring the UK into line with international competitors and would be pivotal in unlocking the economic potential of our industry,” Collins said.

“With a lower rate of VAT on tickets, we could see the sector grow further, supporting more jobs, generating more investment, and putting on more gigs, festivals and tours for people to enjoy.”

LIVE Chair Steve Lamacq added that that last year, “we saw much of the live music sector triumph over adversity; faced with a spike in costs as a result of inflation, the cost-of-living crisis and labour shortages, fans had more concerts and festivals than ever to enjoy.

“However, we cannot forget that urgent action is needed to support the many grassroots venues, artists, and festivals which continued to struggle last year.”Music Business Worldwide