In a significant development for the UK’s vibrant music ecosystem, UK Music has officially backed the Music Producers Guild’s (MPG) urgent call for recording studios to be made eligible for reduced business rates under the government’s Retail, Hospitality, and Leisure (RHL) scheme. This crucial endorsement aims to safeguard hundreds of essential cultural and creative spaces across the nation, which are currently grappling with escalating operational costs and the threat of closure.
The MPG’s Campaign and the Growing Crisis
The Music Producers Guild has long campaigned for a fairer business rates system for recording studios, highlighting how the current regime is crippling the sector. Recent research from the MPG paints a stark picture: a November 2024 study revealed a significant surge in business rates for studios, increasing by an average of 25%. This financial pressure has left many studios in a precarious position, with 100% unable to pass these increased costs onto their clients and a concerning 50% contemplating closure within the next 12 months. These are not just commercial entities; they are vital hubs where popular music is created and innovation thrives.
UK Music’s Endorsement and the Call for Inclusion
UK Music, the umbrella organisation representing the collective voice of the UK’s commercial music industry, has now lent its full support to the MPG’s petition. “Our world-leading studios are a critical part of the UK music industry,” stated UK Music Chief Executive Tom Kiehl. “They nurture talent, attract global stars to work here and help create music loved by millions across the world. However, many are struggling to survive in the wake of rising costs. The government could deliver them a lifeline by cutting business rates to give them the chance to thrive and help our economy grow.” This partnership signifies a united front, underscoring the profound cultural and economic value these studios bring.
The Value of Recording Studios
Recording studios are more than just buildings with equipment; they are incubators of creativity and essential infrastructure for the UK’s world-leading music industry. Historically, iconic studios like Abbey Road, Olympic, and RAK have been the birthplace of countless legendary tracks and albums, attracting artists from across the globe. Today, over 500 such studios operate nationwide, serving as vital cultural spaces within their local communities and playing a pivotal role in nurturing emerging artist talent. They represent a significant part of the UK’s creative capital, contributing to its status as a global music superpower. Beyond artistic output, these businesses support jobs and contribute to economic growth.
The Retail, Hospitality, and Leisure (RHL) Scheme – A Potential Lifeline
The proposed solution centres on extending eligibility for the Retail, Hospitality, and Leisure (RHL) business rates relief scheme to recording studios. This scheme, intended to support businesses in these sectors, currently offers eligible properties a 40% reduction in business rates for the 2025/26 financial year, up to a cash cap of £110,000 per business. Studios argue they share many characteristics with eligible RHL businesses, often serving as public-facing cultural spaces that are crucial for the music industry’s infrastructure, akin to live music venues. The MPG’s Director, Cameron Craig, emphasized this point: “Studios are public-facing cultural spaces, and it’s only right they receive the same support as venues and other leisure businesses.” Without inclusion, studios will be excluded from this vital relief, which is set to be introduced from April 2025.
Industry Impact and Future Outlook
The implications of failing to act are severe. The closure of recording studios could lead to a loss of vital creative infrastructure, making it harder for new artists to develop and for the UK to maintain its competitive edge in the global music market. This news comes at a time when the UK’s music industry, a multi-billion-pound sector, is crucial for economic growth and employment. Supporting these studios through business rates relief would not only preserve cultural heritage but also foster continued investment and innovation, benefiting every entrepreneur and artist involved. The ongoing news around government support for creative industries, including grassroots music initiatives, highlights a recognition of the sector’s importance, but specific action on recording studio business rates remains critical.
The joint effort by UK Music and the MPG represents a timely and critical plea to the government, seeking to ensure that these indispensable spaces for music creation can continue to thrive, secure their future, and contribute to the UK’s ongoing success as a global leader in popular music.
