The government is set to introduce a voluntary levy on tickets for concerts at stadiums and arenas to help fund grassroots venues.
Ministers expect the music industry to push through their proposals “as soon as possible” for shows next year, the Department for Culture, Media and Sport (DCMS) said.
The government argues that an “industry-led” levy “within the price of a ticket” would be the quickest and most effective way for revenues from the biggest shows to help the grassroots sector.
“Ministers have made clear that they want to see a voluntary levy come into effect as soon as possible for concerts in 2025, with clear communication to fans on the purpose of the levy and the benefits it will bring to the grassroots sector,” the DCMS said.
Smaller venues have struggled in recent years after the pandemic and rising inflation.
Some bands have already started to donate part of their ticket sales to help fund smaller venues.
Enter Shikari gave £1 of every ticket sold for their 2024 arena tour to the Music Venue Trust while Coldplay have also pledged to donate 10% of profits from their upcoming UK stadium tour to support smaller venues.
Creative industries minister Sir Chris Bryant said: “Grassroots music venues are one of the UK’s most valuable and yet undervalued cultural assets.”
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He continued: “They are where bands try out new material, where whole new genres are born, where musicians experiment and where audiences get to experience the raw power of live music.
“These venues support thousands of jobs and are a vital part of our local communities.
“Without a flourishing grassroots music industry the rest of our music industry will wither.”
Sir Chris added: “That is why I am urging the industry voluntarily to introduce a ticket levy on the biggest commercial players, to help ensure the health and future success of our entire live music industry for decades to come.”
The cross-party committee on culture, media and sport, which initially put forward the proposal, welcomed the ministerial support but said a “firm deadline” is needed on how long the industry has to take action “before the government itself steps in”.
The committee said it would hold a hearing with the sector in six months’ time if no major progress is made.