Ticket levy could save Glasgow's grassroots music venues, say campaigners

Could a ticket levy on major concerts be the key to saving grassroots music venues in Glasgow?

Small venues around the city say the are under threat.

A combination of high costs, changes from the Low Emission Zone rules and recovery from the Covid pandemic have left many businesses in the lurch.

“We’ve seen a huge change in the way that people go out and spend their money,” said Phoebe Inglis-Holmes a booker with the Hug and Pint.

The venue, on Great Western Road, is one of the city’s most beloved grassroots venues and is set to celebrate its 10-year anniversary this summer.

“We’ve seen our costs increase by 30% and also the overhead charges are being increased constantly. So we are in a bit of a deficit now – as are so many grassroots music industry places.

“What we really need to help the industry is to see a wider support network and a bit of a circular economy.”

That “circular economy” could come in the form of a ticket levy scheme.

In December last year, Glasgow councillors backed the introduction of a new £1 levy on tickets for so-called “mega-gigs” in the city.

Phoebe Inglis-Holmes, booker at The Hug and Pint STV News

The proceeds of the levy would then go to smaller venues.

The idea received cross-party support and councillors are now looking at the best way to implement the scheme.

It would apply to gigs at the 14,300 capacity OVO Hydro – one of the key venues for some of the biggest names in music.

Sabrina Carpenter and Gracie Abrams are just two of the big names to have played the venue this month and later this year Kylie Minogue, Sam Fender and Tate McRae are all set to perform.

Campaigners say the scheme could raise hundreds of thousands of pounds a month for grassroots businesses.

The idea has been led by the Music Venue Trust (MVT) who have called for similar schemes across the UK.

“Grassroots music venues at the moment are on a knife-edge,” said Stina Tweedale, the Scotland coordinator of the MVT.

Stina Tweedale, Scotland Coordinator, Music Venue Trust STV News

“Profitability at the moment is less than 0.5% and they’re facing a whole host of other issues as well.”

She added: “Actually the demand for live music and live performances is up and we know that because in the last year we’ve seen 1.67 million visitors to GMVs [grassroots music venues]. But cost-of-living is what’s having an impact. Before where you would perhaps buy a drink and food we see that people are choosing not to do that as much now.”

“The ticket levy is something Music Venue Trust has been working on since 2018. It’s something that would make sure that we can secure the future of live music venues and the wider music industry.”

However, some in the industry have warned that scheme has its limits.

Geoff Ellis, CEO of Glasgow-based DF Concerts and Events, argues “it’s difficult to keep adding levies” and that they are “not the silver bullet for anything.”

He said: “Levies already exist in a way. For instance, when I put on a concert in one of Glasgow’s parks there’s a £3 levy on every ticket sold – it’s the largest in the UK.

“That means we have to reduce our ticket prices by £3 so that fans can afford to pay. There’s also talk of a tourism tax coming in as well which will affect people.”

“However,” he added. “On a tour-to-tour basis bands could decide to do it – Pulp just did it recently. It is a way of putting money back into the infrastructure.”

Responding to news from Glasgow, a spokesperson for the Scottish Event Campus, which includes the OVO Hydro and the SEC Armadillo venues, said it would welcome ways of supporting the grassroots.

They said: “The live entertainment industry is of vital importance to the UK economy, and we welcome initiatives that seek to support it.

“All industry stakeholders are liaising extensively on a proposed levy to provide much-needed support to the grassroots eco system and the most effective way to do this.”

Watch the full Scotland Tonight report on the STV Player.