Frazer tells music industry to support grassroots venues

Government is supporting efforts by grassroots music venues to secure "trickle down" financial assistance from firms staging big concerts, but has no intention of intervening to ensure it happens, Culture Secretary Lucy Frazer has said.

Appearing before the Culture Select Committee, Frazer said she is aware of the difficulties facing small venues and their importance as a talent pipeline for artists who tour around the UK and the world.

Questioned on the issue by committee member Steven Brine, Conservative MP for Winchester, Frazer said she has been involved in a roundtable discussion with the music industry which included grassroots venue representatives.

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"[The grassroots music industry] made very clear their arguments about how [venues] are dropping out and they also made clear they are looking to industry as a whole to support them and are having discussions and I know those discussions are ongoing," Frazer said. 

"Government does support grassroots venues and I am looking at that."

According to the Music Venue Trust, more than a third (35%) of independent British music venues have closed in the last 20 years. 

In contrast, major music promoters can make significant profits. The most recent accounts for SJM Concerts, which has presented tours for the likes of Adele, Coldplay, Stormzy, and Robbie Williams, shows that for the 12 months up to 31 December 2021 it had turnover of £80.5m and gross profits of £9.9m.

However, AEG Presents UK made a loss of £5m from a turnover of £39.2m for the year up to 31 December 2021.

During the meeting, Brine told Frazer grassroots venues operate at a profit margin of around 0.2% and said on average one is closing each week. 

Government intervention

He queried whether government intervention was on the cards in light of moves by government to protect the long-term future of English football and suggestions Prime Minister Rishi Sunak wants to introduce a food price cap in supermarkets. 

"The point that I suspect was made at the roundtable and the Music Venues Trust has certainly made to us many times is that they want you to look at the football model where real financial support from big arena ticket income is reinvested into grassroots live music industry," he said. 

"Was that point made to you and do you have sympathy with it?"

Frazer repsonded by saying that "it isn't for government to keep interfering in industry".

"Industry needs to work together with its sector and I hope that that happens because it is a pipeline," she said. 

"Grassroots music is a pipeline to Adele and Elton John and all those other brilliant talents that we have had. We have separately supported grassroots venues and I'm looking carefully at that."

Brine went on to press Frazer on whether arenas and stadiums are getting a "strong message" that she would like to see them do more to trickle money down to the grassroots venues.

"Are they getting that message from you?," he said.

"Yes - I think they are," Frazer replied.

Arts Council England decisions

Frazer was also asked about the investment decisions made by Arts Council England, directed by the Department for Culture, Media and Sport, to move money out of London.

"The decisions of the Arts Council have been made," she said.

"I do think it's really important that we maintain areas of excellence where there are areas of excellence but we also ensure the whole country benefits from the government's resources and it's really important that we have culture spread across the country into the north."

She also revealed that DCMS has played a role in discussions between ACE and English National Opera over its proposed move away from the capital and that the process of ENO putting forward a business case together for an additional £24m in funding is due to be completed in mid-July.

"I know that my department has helped to convene those discussions," she said.

"The ENO obviously plays a really critical role in ensuring that opera is available to everybody. I understand that in the revised arrangements it will still be able to operate from the Coliseum in London as well as to work further afield and in the north and I will continue to have discussions with ENO and ACE."