UK music biz struggles to keep up with pre-pandemic economic boom
The UK music industry is still struggling to keep up with pre-pandemic levels, as the sector calls for more support.
According to fresh data from industry body UK Music, the sector’s contribution to the UK economy in 2021 was £4bn – up 26 per cent on the £3.1bn figure for 2020, but still down 31 per cent on the all-time high of £5.8bn in 2019.
The main driver was that whilst music studios were allowed to remain open with limitations, the Government-mandated restrictions meant that live venues spent a significant amount of the year closed or operating at limited capacity.
Employment in the music industry also rose to 145,000 jobs last year – up 14 per cent on the 128,000 jobs in 2020, but again 26 per cent below pre-Covid levels of 197,000 jobs.
The same can be said for music exports, which were still down 15 per cent on the £2.9bn in 2019, despite major British success stories like Adele’s biggest selling album in the world, ‘30’.
UK Music Chief Executive Jamie Njoku-Goodwin said the findings show why the Government need to act to support the music biz, which he says still faces a “major threat from strong economic headwinds”.
“We welcome the Government’s announcement to combat the impact of soaring energy bills, which will give music businesses some urgently needed support. However, we need clarity about what happens after that support is withdrawn after six months,” Njoku-Goodwin said.
“And we still need to see more assistance to secure our sector’s long-term recovery, including a significant cut in VAT from its current rate of 20% – something the Government did in the pandemic to support the music sector.”
The new Culture Secretary Michelle Donelan called UK Music’s new report “invaluable”, and said: “Music is one of our country’s prized national assets, and I look forward to working with the industry to keep it at the centre of the global stage.”