The UK government has been accused of “swelling the coffers of the Treasury” by raising VAT money from LIVE Trust’s grassroots levy.
The much-discussed £1 levy on tickets sold to arena gigs and bigger in the UK has been designed to redistribute money back to grassroots venues to secure their survival during this time of crisis, and it was given backing by the UK government in 2024.
It launched in January 2025 and is administered by the LIVE Trust, who have committed to sharing the money among artists, managers and promoters to ensure that the entire grassroots ecosystem benefits in this country.
However, many in the music industry have been frustrated that some of the £6million raised so far by the scheme has been handed directly to the treasure through “stealth” VAT charges, amounting to £1.2million (via The Telegraph).
Wolf Alice guitarist Joff Oddie, who has been an outspoken backer of the scheme, has said: “Enabling artists to get out and perform whilst supporting grassroots venues, festivals and independent promoters to thrive is essential to developing the UK’s live music pipeline and building audiences.”
“Every possible penny raised should be reaching the organisations doing that vital work, investing money back into the grassroots and boosting economic activity, not disappearing into the Treasury’s pot.”
Jon Keats, director Liverpool’s iconic Cavern Club agrees. “The grassroots levy is there to support the whole grassroots ecosystem, venues, artists, promoters and festivals. This is a vital investment in the future of British music, and it’s actually quite absurd that the government would think that a good use for any part of it should be swelling the coffers of the Treasury.”
“The whole industry has come together to create this fund,” he added. “The government now needs to play its part and cancel the VAT charge on the levy.”
LIVE Trust CEO Jon Collins said: “It is frustrating that unnecessary VAT charges mean a significant chunk of this money is being diverted away from the grassroots and into Treasury coffers instead.”
Mumford & Sons keyboardist Ben Lovett added: “The Government taking a VAT cut from a levy that was designed as a way to assist the Government in protecting the cultural economy and communities across the country is about as circular and upside down as this sentence sounds.”
A government spokesman said: “We support charities and grassroots sectors with over £6.7bn a year in tax reliefs, additional support for venues via business rates and the £30m Music Growth Package.
“VAT is applied to the full amount paid for a ticket, and the £1 contribution forms part of that price. Excluding it from VAT could create inconsistencies across the tax system, which would increase complexity, blur the boundary between ticket prices and donations, and risk opening up scope for avoidance.”
In January, the government delivered a U-turn and a package of extra support for pubs and venues, after previously dealing them a devastating blow with massively increased business rates. However, the industry is asking for much more investment in the ecosystem.
It was revealed that 30 grassroots venues were lost forever between July 2024 and July 2025, and last year alone saw more than half of those remaining making no profit and over 6,000 jobs lost. This poses an existential threat to the future talent pipeline of the country’s world-renowned live music industry.
Recent years have seen the UK suffer from the “complete collapse of touring“, with 175 towns and cities declared “gig deserts”, and 35million people without live music in their area or community. In 1994, the average length of a tour of grassroots venues around the UK was 22 shows with 28 locations on the primary and secondary circuit. After decades of decline – growing more steep in recent years – the average length of a UK tour is now around 11 shows with only 12 locations on the primary and secondary circuit.
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