Music fee increase would hit businesses, warns UKHospitality
05 October 2018
Posted by: Pernille Thomsen
UKHospitality has today warned that proposed increases on recorded music tariffs under consultation would have a significant effect on the hospitality sector.
The trade body has submitted a response to Phonographic Performance Limited’s (PPL) consultation on proposed changes to the Specially Featured Entertainment (SFE) tariff applicable to pubs, bars, nightclubs and hotels. Proposed increases in the fee itself could see PPL bills increasing by as much as 470%+ for many venues.
UKHospitality Chief Executive Kate Nicholls said: “Under some of the proposed changes, venues could expect to shoulder a three-figure percentage increase on the basic per person fee level at a minimum. Additionally, PPL is also proposing a change in structure that is based on a venue’s capacity, rather than actual attendance. This means that pubs, bars or nightclubs could be charged for a full venue even if they are over half empty, which could raise costs even higher.
“Significant fee increases will be crippling for many businesses. The proposed change in fee structure would not just hit large nightclubs and bars, it will also spell trouble for pubs who want to host a weekly disco or other businesses wishing to play specially featured music.
“We have been liaising with PPL and raising our concerns, and we are hopeful that we can continue to work with them to avoid a significant cost increase for the sector.”
Notes to editors
- UKHospitality is the new trade body representing the UK’s hospitality sector, established following a merger approved in February 2018 between the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association (BHA)
- UKHospitality is the authoritative voice for over 700 companies, operating around 65,000 venues in a sector that employs 3.2 million people
- The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators
- For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality; coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, stadia and visitor attractions
- Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented
- The sector creates £130bn in economic activity and generates £38bn of tax for the Exchequer, funding vital services
- Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP
- Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined
· Member benefits include free advice and expert guidance on regulation, finance and health and safety as well as savings on services from carefully selected business partners.