UK government accused of "diverting" grassroots ticket levy funds to Treasury
Over £1.2 million of the £6 million raised by the initiative so far has been eaten up by VAT charges
The UK government has been accused of "diverting" funds raised LIVE Trust’s grassroots levy to the Treasury.
According to a report from The Telegraph, £1.2 million of the £6 million raised by the scheme - which puts a £1 levy on tickets for stadium and arena music events in the UK to support grassroots music - has gone to HMT via VAT charges.
The Telegraph's report points to Harry Styles' forthcoming 'Together, Together Tour', which features 12 dates at Wembley Stadium this summer and would raise an estimated £1 million in donations, stating that £200,000 of that would be "siphoned away in VAT".
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In a statement to The Telegraph, LIVE Trust Chief Executive 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."
In a 2025 survey, 93% of UK music fans said they backed the ticket levy, which under the LIVE Trust's administration has worked to deploy funds raised to grassroots artists, promoters and venues.
Last month, the Music Venue Trust (MVT) unveiled a series of new initiatives funded by the levy, including an investment programme to provide money for equipment at grassroots venues.
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A spokesperson for the UK government responded to the report, claiming that it "supports charities and grassroots sectors with over £6.7 billion a year in tax reliefs, additional support for venues via business rates and the £30 million 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.”
[Via: The Telegraph]
Megan Townsend is Mixmag's Deputy Editor, get in touch with her here.