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UK Music urges Authorities to guard music {industry}

09.22.2022: UK Music, the collective voice of the UK music {industry}, publishes its This Is Music 2022 annual report at the moment, which reveals how the sector started to recuperate from the preliminary influence of the pandemic.

Unveiling the report, UK Music Chief Government Jamie Njoku-Goodwin stated the financial findings confirmed why the Authorities ought to act to assist the music {industry}, which nonetheless faces a “main risk from sturdy financial headwinds”.

The important thing findings in This Is Music – based mostly on information collated from throughout the music {industry} in 2021 – embrace:

  • UK music {industry}’s contribution to UK financial system in 2021 was £4 billion – up 26% on the £3.1 billion determine for 2020, however nonetheless down 31% on the pre-Covid all-time excessive of £5.8 billion in 2019.
  • Employment within the music {industry} rose to 145,000 jobs in 2021 – up 14% on the 128,000 jobs in 2020, however nonetheless down 26% on the pre-Covid report of 197,000 jobs in 2019.
  • Exports within the sector rose in 2021 to £2.5 billion – up 10% on the £2.3 billion determine in 2020, however nonetheless down 15% on the £2.9 billion in 2019.

UK Music’s report measures the well being of the music enterprise by collating information in regards to the sector’s contribution in items and providers to the financial system. That financial contribution is called Gross Worth Added (GVA).

The information reveals that in 2021 the sector was recovering from the preliminary influence of the pandemic, because the music {industry} tailored.

Whereas music studios had been allowed to stay open with limitations, the Authorities-mandated restrictions meant that stay venues spent a major quantity of the 12 months closed or working at restricted capability.

This was a significant factor within the drop within the music {industry}’s financial contribution, which fell from its pre-pandemic excessive of £5.8 billion in 2019 to £4 billion in 2021.

The 2021 That is Music information additionally confirmed lots of the music {industry} jobs worn out by the pandemic, which noticed employment within the sector drop by 35% from 197,000 in 2019 to 128,000 in 2020, had not returned in 2021.

Whereas exports had been nonetheless down on the 2019 pre-pandemic figures, year-on-year demand strengthened considerably in 2021, with a ten% rise from £2.3 billion to £2.5 billion.

Nevertheless, there have been some nice British success tales. In 2021, the largest promoting album on the planet was Adele’s ’30’. Ed Sheeran’s ‘=’ was the fourth best-selling album and Dua Lipa’s ‘Future Nostalgia’ was in sixth place.

UK Music’s Chief Government Jamie Njoku-Goodwin stated the report confirmed the pressing want for assist from new PM Liz Truss and the Authorities to cut back the tax burden on the music {industry}, incentivise funding and assist enhance exports.

UK Music Chief Government Jamie Njoku-Goodwin stated:

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The UK music {industry} is working laborious to recuperate after the catastrophic influence of Covid, however there may be nonetheless some solution to go to revive the roles and progress misplaced throughout the pandemic.

Our sector nonetheless faces a critical risk from the financial storm that might blow our fragile restoration off target with out pressing Authorities assist.

It is important that Authorities acts to guard and assist 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 has stated she desires to chop taxes to stimulate progress.

If she is critical about this, then she ought to use the emergency finances to cut back the tax burden on the music {industry}, as an example by extending the vastly profitable inventive {industry} tax reliefs to the music {industry}.

This could incentivize funding and enhance exports of British music, that are in danger resulting from growing worldwide competitors and points following the UK’s exit from the European Union.

We welcome the Authorities’s announcement to fight the influence of hovering power payments which is able to give music companies some urgently wanted assist. Nevertheless, we’d like readability about what occurs after that assist is withdrawn after six months.

And we nonetheless must see extra help to safe our sector’s long-term restoration, together with a major reduce in VAT from its present charge of 20% – one thing the Authorities did within the pandemic to assist the music sector.”

It is usually important that Authorities acknowledges the significance of copyright to the inventive sector and takes step to guard IP rights.

Proposals by the earlier Authorities to permit AI corporations a copyright exception for textual content and information mining are an existential risk to our sector and have to be stopped.

These plans represent a inexperienced gentle to music laundering and the entire {industry} is united in urging the Authorities to scrap them.

As we confirmed earlier than the pandemic, the UK music {industry} could be world main. However with out assist from new Prime Minister Liz Truss and her ministerial group de ella, there may be the deeply worrying prospect that the billions spent supporting music companies and cultural establishments throughout the lockdowns shall be wasted. We can not permit that to occur.

Now we have a music {industry} within the UK that’s the envy of the world and a expertise pipeline that continues to supply international stars and a military of extremely expert professionals.

It is important that the Authorities works with us to guard and nurture the music {industry} from the financial turbulence we face so we will pull via and create the roles and funding to make it even stronger than it was earlier than the pandemic.

Tradition Secretary Michelle Donelan stated:

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Music is such a robust drive for good. It brings colour to our lives, it connects us with family and friends, and it makes an enormous contribution to our financial system – delivering actual advantages which might be seen and heard throughout your complete UK.

The information that UK Music offers is invaluable in shaping the federal government’s ongoing assist for our musicians and the individuals who work with them.

Music is one in every of our nation’s prized nationwide belongings, and I sit up for working with the {industry} to maintain it on the middle of the worldwide stage.

This Is Music 2022 outlines a five-step plan for Authorities to assist the music {industry} restoration:

  • Defend and promote music made within the UK at house and overseas: Defend mental property, cut back purple tape, set up a transitional assist fund, improve export assist applications and set up an export workplace.
  • Incentivize music exercise within the UK: Create a fiscal incentive to encourage new UK music manufacturing and reform understanding of the potential for the sector.
  • Assist music {industry} in delivering for society: Set up a Authorities-industry working group on sustainability and appoint a Commissioner to make sure music is included in well being and social care provision.
  • Constructing UK music careers and abilities: Ship the Arts Pupil Premium to assist colleges’ provision of music to all kids and introduce parity of assist for the self-employment.
  • Assist music areas all through the UK: In face of rising inflation cut back VAT, introduce enterprise charges cuts and new duties to guard music.

Learn the report right here.

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