Glasgow promoters are warning the UK Government that VAT on concert tickets will change the music industry – for the worse. 

Dave Clarke and Mark McKechnie, founders of the Riverside Music Festival, say that the high percentage of VAT levied on event and concert tickets will see less money going towards grassroots gigs, artists, and venues. 

The pair – who spoke to us as part of our Glasgow Times Investigates series Priced Out - believe the high percentage could wipe out fresh talent in the city and beyond.  

READ NEXT: Ticket price rises could kill Glasgow's grassroots scene

(Image: Mark on the left and Dave on the right. Pictures taken by Colin Mearns, Newsquest.)

The VAT levied on tickets currently sits at 20% after the government previously brought it down to 5% and then 12.5% when the live music industry suffered throughout Covid. But since April 2022, the VAT has returned to the pre-pandemic level of 20%. 

To compare, VAT on tickets in France sits at 5%, Germany 7% and Italy 10%. 

Dave told the Glasgow Times: “Artists are now charging too much for tickets and it means people are paying those £100 plus prices and aren’t able to or willing to buy a few tickets for a couple of smaller gigs. 

“If the government can’t provide funds or grants to help with arts and culture, they should at least be cutting the VAT on tickets and that would help everyone in the one go.”

He added: “I think the government needs to pay attention though. The music industry is a big export and there needs to be a proper conversation surrounding the VAT and its effects.” 

Mark said: “There’s a lot more money going to bigger artists now, and when money is going there, it doesn’t feed down the bill to smaller artists. 

“This obviously has an impact on grassroots and it’s a shame. 

“There needs to be some kind of equality to preserve grassroots. If we don’t have that, it’ll just go.” 

Dave added: “Without grassroots, in five, 10 years we’ll just be importing bands. If you don’t have the healthy root, you’ll never get the healthy flower again.”

(Image: Mark on the left and Dave on the right. Pictures taken by Colin Mearns, Newsquest.)

The pair also said that not just grassroots artists, but grassroots promoters are also struggling. 

Mark explained: “The music scene has changed a lot over the last three to four years. 

“Large promoters are now reaching out to smaller artists and venues, and it means that grassroots promoters are finding it harder to compete with and are being financially squeezed.” 

(Image: Mark Davyd, CEO of the Music Venue Trust)

READ NEXT: Terminally ill kids robbed of Glasgow concerts over high prices

The Music Venue Trust - a UK-registered charity which acts to protect, secure and improve UK Grassroots Music Venues – has been very vocal in the last few years on reducing the ticket VAT to 0%. 

The charity has called for the abolition of VAT on grassroots music venue tickets and a review of the business rates paid by venues in the sector. 

The charity also believes that VAT on cultural ticketing in the live music industry should be reduced to the European average (which is between five and seven percent). 

A spokesperson for the UK Government said: "Our music venues are a huge part of our national cultural life and what makes our local communities so unique, which is why we offer support through the business rates system and through a £15 million Supporting Grassroots Music Fund."