Record-Breaking Year for the UK Live Music Industry: Economic Impact Hits £6.1 Billion

The UK live music industry reached new heights in 2023, generating an unprecedented economic impact of £6.1 billion. This surge, driven by a pent-up demand for live events post-pandemic, marks a significant 17% increase from 2022 and a 35% rise compared to pre-pandemic levels in 2019.

The data, released by Live, the federation representing Britain’s live music sector, highlights the substantial contribution of over 55,000 gigs, concerts, festivals, and events to the UK economy. Notably, the economic impact extends beyond ticket sales, encompassing spending on nearby businesses such as restaurants, bars, hotels, and retailers.

Concert Revenues: The Powerhouse of Growth

The growth in 2023 was largely propelled by concert revenues, which soared by 19% year on year. Major tours by global icons like Beyoncé and Coldplay were instrumental, accounting for nearly three-quarters of the total economic impact. Emma Bownes, Vice-President of Venue Programming at AEG Europe, which owns prominent venues like the O2 in London, remarked that 2023 was the busiest year on record for ticket sales and show numbers.

Bownes noted an increase in the number of artists opting to perform multiple shows at the same venue, citing acts such as Madonna, Elton John, and the Killers, who capitalized on the strong demand for live performances. “There is an appetite for shared experiences in general,” she said. “People haven’t been able to go to gigs to see their favourite acts, they’ve missed that, and now they are coming out in their droves.”

Economic Benefits and Regional Impact

The ripple effects of this booming sector were felt across the UK, with London leading the way, contributing nearly 31% of the total economic impact. Manchester, Glasgow, and other major cities like Birmingham and Edinburgh followed suit, highlighting the widespread influence of live music on local economies. Jon Collins, CEO of Live, emphasized the economic benefits of live events, noting that for every 10,000 people attending a concert, approximately £1 million is spent in surrounding businesses.

The live music industry also supported nearly 230,000 jobs last year, reflecting a 9.4% increase since 2019. However, the report cautioned that not all segments of the industry are thriving. Despite the overall success, 125 grassroots music venues closed their doors, and 36 festivals were canceled in 2023, underscoring the challenges still facing smaller players in the sector.

Calls for Government Support

In light of these challenges, Live has reiterated its call for government intervention, particularly the recommendation from the culture select committee’s May report to temporarily reduce the 20% VAT on tickets. The current VAT rate, they argue, is damaging and uncompetitive compared to other European markets.

Collins acknowledged the mixed outcomes for the industry, stating, “2023 delivered significant growth for many sections of the live music ecosystem. But we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs.”

As the UK live music sector continues to thrive, the focus now shifts to ensuring that all parts of the industry can benefit from this growth, safeguarding the cultural heritage and economic vitality that live music brings to communities across the country.