Major Music Venues Seek Business Rates Relief Ahead of Budget
Industry group LIVE argues that extending business rates reductions to large venues would stimulate local economies.
Representatives for major music venues, including Wembley Arena, the O2, and Alexandra Palace, are urging the Treasury to extend business rates relief to larger sites, mirroring support offered to smaller venues and pubs. The industry group LIVE has submitted a proposal calling for a 20 percent reduction in business rates for all live music venues starting next April, aligning with a commitment made by the Prime Minister for other sectors.
LIVE cites research from the National Arenas Association indicating that every 10,000 concert attendees contribute at least £1 million to the local economy. The total consumer spend related to concerts reached a record £7.6 billion last year, according to LIVE chief executive Jon Collins. He emphasized that arenas support hotels, bars, and restaurants, generating significant high street spending. Collins argued that excluding larger venues from relief, despite facing similar pressures to smaller ones, contradicts the acknowledgment of their economic contribution.
The call for business rates reform comes as Chancellor John Healey prepares the Budget on October 28. This follows a previous backlash against former Chancellor Rachel Reeves' business rates reforms, which resulted in increased bills for many businesses.
The live music industry is also seeking changes to how venues' rateable values are determined. LIVE contends that current calculations are based on assumptions for different types of businesses, failing to reflect the operational realities of music venues, such as fixed capacities, limited trading hours, and high staffing costs. These factors create a disconnect between tax liabilities and commercial realities, potentially hindering venues' ability to support economic growth ambitions.
Burnham has initiated an independent review into the calculation of pub rates, led by business rates expert Jerry Schurder, with a report due in March 2027. Music venues are advocating for inclusion in a similar review. A Treasury spokesperson stated that decisions on tax policy are made by the Chancellor at fiscal events and declined to comment on specific proposals or speculation.