LONDON — The U.K. government shared its spending review on Wednesday (Jun. 11), Labour’s first since it won 2024’s parliamentary election. The U.K. music industry, however, has raised concerns that funds are not being prioritized for the sector and warned that “action is needed now” to ensure its stature on the global stage.
The review has been keenly anticipated as sectors look to Labour to stimulate the economic growth promised in its election manifesto. The last full spending review was issued by the previous Conservative government in 2021, but in July 2024 Reeves claimed the Conservative party had overspent by £21.9 billion ($29.6 billion) and that “a necessary and urgent decision” on budgets was required. The review sets out day-to-day budgets for government departments for the next three years, and details long-term investment plans until the end of the decade.
In the new review, chancellor Rachel Reeves shared spending plans for the NHS (National Health Service), and across housing, defense, transport and more. In recent months, the U.K.’s stakeholders have lobbied the Labour government for additional funds for the music industry, but their calls appear to have gone largely unheard.
Last Thursday (May 29), an open letter from the PRS Foundation called on the government to pledge £10 million ($13.5 million) per year for music export and exchange, with the goal of promoting the U.K. music scene on a global stage. The letter was signed by over 350 figures in the industry, including Glastonbury boss Emily Eavis, Beggars Group founder and chairman Martin Mills and rock band Nova Twins. The signatories said the fund would “stimulate the long-term growth of the U.K. music industry” and pointed to South Korea and Australia as nations that had seen successful export programs in recent years.
Gee Davy, chief executive of AIM (Association of Independent Music), said in a statement to Billboard U.K.: “The U.K.’s music is a key element of our soft power, which creates jobs and value for the economy beyond some sectors receiving help in the government spending review. But a combination of economic shocks has hit our sector, with an amplified effect on grassroots and independent music.”
She added, “To regain our position on the global stage we urgently need the government to step in with an ambitious export strategy and commit to long-term investment, alongside incentives to boost music creation with a tax credit scheme similar to that in film. Action is needed now.”
There’s also concern about the Labour government’s commitment to alleviating the live music scene’s struggles in recent years. Recent data from the MVT (Music Venues Trust) indicates that two grassroots venues are closing every month in the U.K. and that the wider night time scene – including bars, clubs and suppliers – is suffering.
Michael Kill, chief executive of the NTIA (Night Time Industry Associations) says that while the government’s commitment to long-term energy infrastructure was a positive step, “venues are struggling to keep the lights on today” due to rising costs in operation. He outlined that the night time industry contributes £153 billion ($207 billion) to the U.K. economy every year, and employs 2.1 million people, but that businesses need “clarity” on what to expect in relation to business rates and potential tax hikes in the near future.
“We need a budget that understands our value, not one that inadvertently accelerates decline,” Kill said. “The government must work in partnership with us. The capital investment plans may look bold, but the devil is in the detail. We need immediate support, clear fiscal strategy, and genuine engagement ahead of the Autumn budget if we are to safeguard a safe, thriving, and sustainable night time economy.”
Music in education settings has also been a key area of focus in recent months with huge talent throwing their weight behind the cause. At the BRITs in March, rising star Myles Smith used his winners’ speech to call on the government to make music education more accessible in state schools. Ed Sheeran, meanwhile, led a campaign backed by Elton John, Harry Styles and Coldplay that called for additional funding for lessons and instruments.
Damian Morgan, employability and industry lead at dBs Manchester, says that the “U.K.’s global success in music is no accident – it’s the result of years of investment, opportunity and education. But right now, we’re at a critical tipping point.” The dBs institutes in Manchester, Bristol and Plymouth offer professional training for students with an interest in music technology, game design and the creative industries.
Morgan adds, “Without serious and sustained support, we risk leaving behind a generation of talent that simply can’t afford to access the opportunities others take for granted. We need the government to take this seriously: invest in music education, protect it in the curriculum, and ensure young people from all backgrounds can find their way into our world-leading music industry.”
