Music Venue Trust respond to additional funding support for businesses affected by COVID

This afternoonn (21 December), Chancellor Rishi Sunak announced a £1 billion fund to help businesses in the hospitality (pubs/restaurants) and leisure sector amid the current COVID situation, which has seen a rise in cancelled events due to the ongoing spread of the Omicron variant.

According to BBC, the Chancellor revealed that businesses will be able to apply for grants of up to £6,000, with the money expected to be distributed in the coming weeks.

The Chancellor called the additional funding "generous", and when asked if more support could be on the cards, he said he will "always respond proportionately and appropriately to the situation we face."

Music Venue Trust has since responded to Rishi Sunak's funding announcement, saying they "welcome any announcement from Treasury that recognises the very serious situation facing grassroots music venue," but added that it's a "woefully inadequate response to the reality of the position."

"Through a local authority distribution process, the Treasury appears to be offering grassroots music venues up to £6,000 (if they meet certain criteria)," Music Venue Trust's statement continued. "This sum is intended to mitigate losses for an as yet unknown period in which business has not just fallen, it has completely collapsed. The minimum length of that period, regardless of any restrictions or limitations to business yet to be announced, is six weeks - you can't simply turn the live music industry on and off like a desk lamp, and tours and events are already cancelled. Not just today, or tomorrow, but for the next three months."

Music Venue Trust continued, "Additionally, the Treasury has announced £30 million will be added to the Cultural Recovery Fund. Our initial response is that this funding seems bizarrely detached from reality. It is certainly completely inadequate to deal with the scale of the problem. We note that grassroots music venues, singled out by the government for specific restrictions since the very start of the crisis, are not even mentioned in today's statement which once again focuses on 'theatres, orchestras and museum' who will be supported 'through until March 2022'. This is despite DCMS having all the evidence they need that losses in the grassroots music venue sector alone will run to £22 million by the end of January, let alone the end of March 2022."

"The damage is already done and there is no point pretending otherwise," Music Venue Trust added. "At least £22 million in losses by the end of next month will hit already beleaguered and exhausted grassroots music venue operators. This level of new debt fundamentally undermines the entire ecosystem that is the bedrock of a £5 billion world leading music industry. We are constantly being told that the Culture Recovery Fund will save the day. For this to be true, it needs to be adequately funded to match the challenges the government is trying to deal with. Today's statement by The Treasury is not the answer that is needed. The Secretary of State for Culture must meet with the sector, properly understand the scale of the damage being inflicted, and return to the Treasury with a financial ask that reflects what is required."

STATEMENT: RESPONSE TO THE ANNOUNCEMENT OF ADDITIONAL FUNDING SUPPORT FOR HOSPITALITY & CULTURE

We welcome any announcement from Treasury that recognises the very serious situation facing grassroots music venues, and other cultural and hospitality spaces, operators and staff. pic.twitter.com/3BPa7uCMjr

— Music Venue Trust (@musicvenuetrust) December 21, 2021

Music Venue Trust weren't the only ones disappointed by the announcement. Night Time Economy Adviser for Greater Manchester and Parklife co-founder Sacha Lord wrote on Twitter, "Support package being announced today. It's pathetic. Won't even touch the sides or save jobs. We all need to continue to ramp up the pressure."

Support package being announced today.

It's pathetic.

Won't even touch the sides or save jobs.

We all need to continue to ramp up the pressure.

— Sacha Lord (@Sacha_Lord) December 21, 2021