UK Music Levy: Government Warns Live Nation Over Grassroots Funding or Faces Legal Action

Government Urges Industry and Live Nation to Support Grassroots Music with Ticket Levy

Creative Industries Minister Ian Murray has called on the music industry, and specifically Live Nation, to “step up to help the next generation of talent” by contributing to a voluntary ticket levy designed to bolster the UK’s struggling grassroots music scene. The move comes as the government considers making the levy mandatory if industry participation doesn’t significantly increase.

Last week, the Featured Artists Coalition (FAC) launched the UK Artist Touring (UKAT) Fund, a new initiative developed in partnership with the Music Managers Forum (MMF) and the Musicians’ Union (MU). The first phase of the fund will distribute £125,000, sourced from donations to the LIVE Trust – an organization receiving contributions of at least £1 from each ticket sold at shows by artists including Harry Styles, Coldplay, and Sam Fender. The LIVE Trust has already raised £5 million for the cause, with plans to distribute a total of £5million throughout the year to artists, venues, and promoters.

This action follows growing concern over the decline of grassroots venues, with recent reports indicating that 30 venues closed permanently between July 2024 and July 2025. More than half of the remaining venues operated at a loss last year, resulting in over 6,000 job losses, intensifying pressure for financial support for touring artists and the venues that host them.

The Touring Crisis and the Voluntary Levy

The UK music industry has been grappling with a “complete collapse of touring” in recent years, with 175 towns and cities now considered “gig deserts,” leaving 35 million people without access to live music in their communities. In 1994, the average tour consisted of 22 shows across 28 locations; today, that average has shrunk to 11 shows in just 12 locations. The UKAT Fund aims to address this “cost of touring crisis” by providing “top-up” contributions to existing tours to help offset budget shortfalls.

The current initiative builds on a £1 voluntary ticket contribution for arena and stadium shows, with the intention of reinvesting the funds into the grassroots sector. While the government initially hoped that 50% of shows with a capacity of 5,000 or more would contribute to the fund by the end of 2025, that target was not met. A new deadline of June 30, 2026, has been set, with the threat of legislative intervention looming if participation doesn’t improve.

What Each Side Wants

Minister Murray emphasizes the importance of grassroots venues as “the bedrock of our music industry” and highlights their crucial role in nurturing future talent. He argues that supporting these venues is essential for maintaining the UK’s position as a global music powerhouse. The government’s position is that while It’s providing support through initiatives like the Music Growth Package and reforms to business rates and licensing, the industry must accept the lead in ensuring its own sustainability.

The Featured Artists Coalition (FAC) advocates for a more equitable distribution of revenue within the live music ecosystem, ensuring that emerging artists and smaller venues receive adequate financial support. They believe the UKAT Fund is a vital step towards addressing the touring crisis and fostering a more vibrant and diverse live music landscape. The FAC is encouraging artists to grow members to receive updates on funding opportunities.

Live Nation, while supporting artists’ individual charitable donations, maintains that it has already worked with numerous artists who have contributed to the voluntary levy. However, critics, including Music Venue Trust CEO Mark Davyd, argue that Live Nation’s dominant position in the market necessitates a more proactive and substantial contribution to the fund.

How the UKAT Fund Works

The UKAT Fund offers financial assistance to artists undertaking tours, with a maximum grant of £7,000 or 40% of total eligible tour expenditure, whichever is lower. The fund is designed to be accessible to artists from all backgrounds, genres, and career stages across the UK, with a particular focus on supporting those from under-represented communities and lesser-served regions. An “Access Fund” is also available to help remove barriers that may prevent artists and their teams from touring.

Applications for the first portion of the UKAT Fund opened on March 11, 2026. The fund’s assessment process considers eligibility, artistic context, financial need, and a commitment to inclusion, representation, and accessibility. Learning from applicants and recipients will inform the development of future phases of the fund.

Political and Strategic Implications

The government’s willingness to legislate a mandatory levy underscores the seriousness with which it views the challenges facing the grassroots music sector. The move reflects a broader policy shift towards greater industry self-regulation and a recognition of the cultural and economic importance of live music. The current Creative Industries Minister, Ian Murray MP, has been particularly vocal about the need for widespread adoption of the ticket contribution scheme.

The situation also highlights the ongoing debate surrounding the market power of Live Nation and the need for greater competition within the live events industry. The Department of Justice in the US is currently pursuing an antitrust case against Live Nation, alleging that the company has abused its dominance to create an illegal monopoly. This case could have implications for the UK market, potentially influencing the government’s approach to regulating the live music industry.

What Happens Next

The coming months will be critical in determining the future of the ticket levy. The government will be closely monitoring industry participation and assessing whether voluntary contributions are sufficient to address the needs of the grassroots sector. If participation remains low, the government is prepared to introduce legislation to make the levy mandatory. The FAC will continue to advocate for artists and operate with industry stakeholders to ensure that the UKAT Fund delivers tangible benefits to the live music ecosystem.

For more information about the UKAT Fund, visit the Featured Artists Coalition website. Details about the LIVE Trust can be found on their website.

Meanwhile, the US antitrust trial involving Live Nation is set to resume, with potential ramifications for the global concert ticket market. More on that story can be found here.