Published
Thu, Jan 7, 2021, 22:25
- The committee chair has written to the chancellor to call for support on UK's live events, garnering the support of over 100 other industry associations.
As festival season approaches, UK Parliament's Digital, Culture, Media and Sport Committee (DCMS) has pressed for the Chancellor Of The Exchequer to extend government-backed insurance schemes to festivals and live music events.
Committee chair Julian Knight MP has written to the chancellor following an oral hearing earlier this week which was the first part of an inquiry into the festival sector.
The inquiry looks into ways government policy can support music festivals set to take place in 2021, emphasizing the economic and cultural contributions live events have made to the UK entertainment industry.
COVID-19 restrictions have led to the cancellation of countless festivals worldwide, while many have moved online or continued to plan in-person events for summer, albeit with uncertainty. The sector's revenues are currently down by 90 percent. Of all the methods to save the industry, Knight asserts that "insurance is of the utmost importance...Whatever form it takes, businesses need to be able to access reliable insurance schemes to get back on track." Over 100 industry associations have signed the letter in support.
The announcement reads:
"[We have] written to the Chancellor asking him to extend government-backed insurance schemes to festivals and live music events or face them disappearing from our fields and cities for good."
"At a crucial point in festival planning schedules, MPs warn that organizers and investors are unable to risk repeating losses sustained in 2020 unless events can be insured against cancellation. With the commercial insurance market not expected to offer COVID-related insurance until 2022, a government-backed scheme is required for festivals to start planning their events and signing contracts with artists and suppliers."
Knight adds, "The government is telling us that life should be getting back to normal by the summer but, unless it can provide a safety net, it will be a summer without festivals. The industry says that without government-backed insurance, many festivals and live music events just won't happen because organizers can't risk getting their fingers burnt for a second year."
"The committee has heard from festival organizers that this is a matter of urgency," he continued. "Insurance must be the first step in unlocking the huge contribution that festivals make to our economy, protecting not only the supply chains but the musicians who rely on them for work. The government already offers a level of cover to the film and television industries, now is the time to extend support to other creative industries or risk losing some of our best-loved and world-renowned festivals."
Read the full letter here.