UK music economy in partial recovery but demands more government help

By | September 22, 2022

The excellent news: The UK music business’s contribution to the UK financial system in 2021 was up 26% from 2020. The dangerous information: It was nonetheless down 31% from its peak. earlier than the pandemic in 2019.

These figures had been printed by UK Music, the umbrella group of a number of business commerce our bodies within the nation, in its new That is music 2022 report. She used the discharge of the figures to name on the UK authorities to supply extra help to the sector to stop it from collapsing, stressing its significance to each the nationwide financial system and its export energy.

The UK music business – throughout all areas, together with recorded music, music publishing and reside – contributed £4 billion ($4.56 billion) to the UK financial system in 2021. This represented a rise from the £3.1 billion ($3.53 billion) generated in 2020. Each years had been massively impacted by the pandemic, with restrictions making use of at varied phases on touring and festivals .

This development, nonetheless encouraging, was nonetheless considerably decrease than the £5.8 billion ($6.61 billion) generated in 2019 earlier than the pandemic hit. It was an absolute file for the British music business.

With elements of the business shut down solely, greater than a 3rd of staff had been made redundant when the pandemic hit in early 2020. That 12 months, there have been 128,000 jobs within the sector. As a part of the gradual restoration, this determine has risen to 145,000 in 2021. Nonetheless, that is nonetheless 26% lower than the business’s 197,000 jobs in 2019.

Exports in 2021 had been £2.5bn ($2.85bn), up 10% from 2020 – however nonetheless down 15% from £2.9bn ( $3.3 billion) declared in 2019.

Jamie Njoku-Goodwin, chief government of UK Music, stated authorities help was urgently wanted because the business nonetheless faces a “main risk of sturdy financial headwinds”.

The report notes: “Whereas music studios had been allowed to stay open with limitations, government-imposed restrictions meant live performance halls spent a lot of the 12 months closed or working at restricted capability. This has been a significant component within the declining financial contribution of the music business.

Njoku-Goodwin added, “It’s important that the federal government act to guard and help a sector that creates jobs, contributes to the financial system and issues to thousands and thousands of individuals throughout our nation. The brand new Prime Minister [Liz Truss] stated he wished to chop taxes to stimulate development. If she’s critical about it, then she ought to use the emergency funds to cut back the tax burden on the music business. […] This is able to encourage funding and increase exports of British music, that are underneath risk attributable to rising worldwide competitors and issues with the UK’s exit from the European Union.

There was a triple risk to the UK music business lately.

Firstly, the nation’s departure from the European Union (aka Brexit) has made it more and more troublesome and costly for British artists to tour mainland Europe.

Secondly, the pandemic has led to the closure of complete sections of the corporate and mass layoffs, as certified professionals need to retrain and search employment elsewhere, which signifies that there are critical shortages of personnel in sure sectors, specifically reside music.

Third, hovering power prices are anticipated to hit companies exhausting, particularly smaller venues which have suffered anyway and at the moment are going through rising uncertainty. The federal government has confirmed that the Power Invoice Aid Scheme will cap wholesale power costs for all companies for a interval of six months from October 1.

The price of dwelling disaster can be inflicting big concern within the UK, the place meals costs, power costs, rents, mortgage charges, and so forth. are rising sharply, as is the mortgage charge. ‘inflation. Folks shall be compelled to drastically reduce spending throughout the board, with leisure spending set to be significantly exhausting hit.

The ripple impact right here will clearly be on the reside music sector, particularly common venues, and that is one thing the Music Venue Belief has been pushing for a number of years.

“We’ve got a music business within the UK that’s the envy of the world and a expertise pool that continues to provide international stars and a military of extremely expert professionals,” stated Jamie Njoku-Goodwin. “It’s important that the federal government work with us to guard and help the music business from the financial turmoil we face in order that we will climate it and create the roles and funding to make it even stronger than ever. it wasn’t earlier than the pandemic.”