UK grassroots venues face greater danger from energy crisis than Covid-19
The Music Venues Trust (MVT) have delivered a grave warning that the approaching energy crisis could pose a much greater threat to the UK’s grassroots music venues than the Covid-19 pandemic, unless the government acts now.
Last week, five organisations representing the UK hospitality sector penned an open letter to the government, shedding light on “rocketing energy prices” that are on their way, which will become “a matter of existential emergency” later in the year, and they’re demanding that the government act immediately to prevent what is going to be a catastrophe for the UK’s culture.
Now, the CEO of the MVT, Mark Davyd has spoken to the NME about the threat posed to grassroots venues by the price rise. “Without action from the government, we are now modelling that this will close more venues than the pandemic,” he argued. “We don’t see any other outcome.”
Davyd continued: “It feels weird to say it, but unlike during COVID when you could go, ‘OK, we need to raise some money now because in a year’s time the venues will be open’, we can’t do that now because they’ll have to pay another electricity bill next year and the year after that, obviously. I can’t see any end to this unless venues put their prices up.”
The MVT also shared findings to support Davyd’s claims, showing that grassroots venues are facing the potential of an additional £90million per year in energy costs. From their model, the organisation claims that a venue is currently paying an average of around £1,245 per month and will endure a lowest possible increase of 156% (to £3,187 per month), an average increase of 316% (to £5,179 per month), and a highest possible increase of a shocking 646% to £9,288 per month.
Davyd maintained that the figures were all based on quotes that venues have recieved, with many of them having no other alternative. This will also effect fans, who will experience rising prices or, at the very worst, venues closing their doors for good.
“This, unless the government tries to do something, is the new reality – electricity is going to be this amount of money,” Davyd explained. “The question is ‘What is the tolerance of the audience for significant price increases?’ Your days of the £5 show for three local bands – that wouldn’t even cover the cost of the electricity.”
He continued: “I imagine that venues may well suffer death by a thousand cuts. They won’t instinctively close down, and they’re more likely to go, ‘Let’s put £4 extra on an £8 ticket and see if people are prepared to pay for it’. I’ve got severe doubts about that.”
“It’s a terrible time for new and emerging artists. Everyone needs to get out there and play for their audiences. What’s that going to feel like when ticket prices go up? The artist won’t be earning more. I had one venue who just honestly said, ‘There is no way I can put an electricity levy on the tickets’. You’d have to section that out across everything else.”
“The government needs to start thinking that this is going to happen in retail, it’s going to happen in your local supermarket, your school – there are no controls here,” he said. “The government imagined that the market would sort it all out and it’s painfully obvious that it isn’t going to happen.”
Davyd concluded: “The government should bring in a price cap immediately. At the moment, there’s a certain amount of just sitting back and seeing what happens. Something either works or it doesn’t, and this doesn’t work.”
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