When the UK votes on July 4 to elect its next government, business leaders around the world will be watching the result closely to see what it means for them. For the music industry, the upcoming general election — the Prime Minister announced Rishi Sunak on Wednesday (May 22) — could also lead to major changes depending on who wins.
According to the latest opinion polls, the Labor Party is more than 20 points ahead of the ruling Conservative Party, which has been in power for 14 years. Unless Sunak pulls off an extraordinary recovery in the next six weeks, Labor leader Keir Starmer he is widely expected to be the next occupant of Number 10 Downing Street, likely with a large majority of parliamentary seats.
If that happens, Starmer said he plans to make a series of reforms affecting the world's third-biggest recorded music, touring and tech industry regulation, which will reverberate beyond the UK's borders.
Tighter rules for ticket resale platforms and tax on future arena tickets
In March, Starmer announced that a future Labor government would cap the resale prices of concert tickets and introduce stricter regulations on secondary ticketing platforms such as Viagogo, which has already come under numerous investigations and inquiries in the UK.
The Labor policy would limit the number of tickets individual resellers could sell on resale platforms and give Britain's competition watchdog greater powers to take “swift” action against services and scalpers who break the rules, Starmer said. .
Any change at Number 10 could also have major implications for the global tour business. Earlier this month, a parliamentary committee called for a new voluntary levy to be added to arena and stadium tickets sold in the UK to support struggling grassroots venues.
To stem the tide of small venue closures, the Culture, Media and Sport (CMS) Commission said the voluntary levy should be introduced “no later than” September. If no progress is made, the government should create a statutory levy, advised the committee, which also called for a reduction in sales tax (VAT) on tickets for grassroots music performances.
Whichever political party wins on July 4 will be expected to respond to the CMS report on the grassroots sector. As for the committees themselves, they all cease to exist after Parliament is dissolved on May 30, although a new set will be formed after the election made up of a cross-party selection of MPs. They can choose new topics or industries to investigate — or they can choose to build on the work of their predecessors, meaning parliamentary interest in the music business is unlikely to fade.
Given the UK music industry's huge contribution to the country's economy – £6.7 billion ($8.2 billion) in music sales, concerts, recording studios, tours and music tourism in 2022, according to trade body UK Music – government leaders will be willing to do what they can to protect the sector.
Setting AI and Big Tech
After the general election, the hot-button issue of regulating the use of artificial intelligence (AI) is likely to be near the top of the legislative agenda and will continue to be a source of intense lobbying from the tech and music industries.
The current Conservative government has spent the last several years consulting on the issue, but has yet to implement any firm plans and has generally taken a light “pro-innovation” approach to AI regulation.
In 2023, the government quietly withdrew an Intellectual Property Office (IPO) proposal for a new text and data mining (TDM) exemption that would have allowed AI developers to freely use copyrighted works for commercial purposes (albeit with some restrictions). after heavy criticism from the music industry.
Since then, there have been repeated calls from music trade groups such as the BPI for the government to follow the lead of the European Union and defend creators, musicians and rights holders from the potential dangers of AI models.
Earlier this month, the All-Party Parliamentary Group (APPG) on Music called for a comprehensive AI Bill for the “super-creative industries” that protects the music business from the “threats” posed by technology. Among its recommendations were a ban on AI developers using copyrighted music for educational purposes without consent, as well as a requirement for tech companies to clearly label all AI-generated content.
If Sunak retains power, music executives will want to see him urgently move forward with UK AI legislation and ensure the UK does not fall behind other countries and markets in regulating the sector.
Labour's position on artificial intelligence, as outlined by Starmer last summer, is that they will bring in tighter regulations than the Conservatives, although details are scarce on the ground and the party's stance appears to have softened in recent months as is attempting to woo entrepreneurs and tech executives by portraying itself as a “pro-innovation” government-in-waiting. Labor has been working on an AI strategy paper ahead of the general election, expected to be launched this month.
AddressThe discontent of artists and songwriters is over Flow terms
Over the past four years, the UK has led the way in tackling artists' dissatisfaction with low payouts from music streaming. Since 2020, when the pandemic shutdown of the live industry brought the issue to the fore, there have been numerous Parliament-led inquiries into the record business, including a review of major labels' market dominance by the UK's competition watchdog.
In December 2021, a bill was debated in the House that would require record companies to pay musicians and songwriters a larger cut of streaming revenue. It was defeated at the first stage, but the prospect of government intervention in the UK music industry led the record companies to strengthen their public policy teams and pour huge amounts of time and resources into dealing with the various investigations.
Increased scrutiny of the music industry has yet to lead to law changes, but it has increased pressure on record companies to improve artists' terms and contracts. A government-led task force focusing on creator pay was recently launched (which insiders say is likely to continue after the election), and the buzz around low streaming royalties for many artists is unlikely to die down anytime soon.
Last month, the Culture, Media and Sport (CMS) Committee published a report calling on government ministers to “do more to ensure musicians are paid fairly” and press ahead with a package of sweeping copyright reforms. The panel's recommendations included revising the split of revenue between recording and publishing rights from streaming music, currently set at around 55% for recording and 15% for publishing, in order to better reward songwriters.
“It is vital that any incoming administration ensures that we deliver on the Culture Select Committee's recommendations to restore the streaming market and support grassroots live touring,” he says. Annabella Coldrickchief executive of the UK Music Managers Forum (MMF).
“More broadly, we need a government that values British music, puts it at the forefront of UK development policy and supports it with a credible music strategy to maximize the potential of our industry both domestically and internationally,” he adds Coldrick.
Whether that responsibility falls on Sunak or Starmer will be decided by the British public on July 4. If Labor wins the general election, there is a chance two high-profile figures from the music world could join the government. Dave Rowntree, the Blur drummer, is Labour's candidate for the Conservative seat of Mid Sussex, while Tom Gray, co-founder of indie rock band Gomez and chairman of Ivors Academy songwriters and composers, is the party's pick. candidate for the Brighton Pavilion constituency.
