Phonographic Performance Limited (PPL) has announced it will introduce a new music tariff that will apply to hospitality businesses hosting DJ events.
UKHospitality has responded to PPL’s consultation on the tariff arguing against an additional tax for businesses.
UKHospitality Chief Executive Kate Nicholls said: “The decision to introduce a new tax for music venues could be potentially devastating. This new tax will see venues hit with an average 130% increase which we estimate will cost the hospitality sector upwards of £49 million.
“Hospitality businesses are already being bombarded with constantly-increasing costs and only today a Government report highlighted the pressures being faced by music venues. The report stated that increasing costs were a major factor in the closure of venues. This additional massive cost is not going to help, it is only going to force more and more venues out of business.
“It is not just nightclubs and large venues that will be hit, either. Village pubs that host weekly discos will be strangled by the charge and there is every chance that such events, upon which many pubs might rely, will be forced out altogether.
“The UK’s music venues are some of the hospitality sector’s most exciting businesses. Music plays an enormous role in our lives culturally and socially as well as economically, but extra fees such as PPL’s will only wring the last life out of venues.
“UKHospitality has been in discussions with PPL and repeatedly highlighted the problems this new tariff would lead to. We had some success in avoiding proposed structural changes but it is disappointing to see them ignore our warnings and push ahead with a hike. Unless PPL rethinks this charge then they are only going to put the businesses they want to charge out of business.”
