MPG calls on government to give music studios own classification within the business rates network

The Music Producers Guild (MPG) delivered its petition to Downing Street this week, along with a letter to the Chancellor calling on the government to give music studios their own classification within the business rates network – something which could cut running costs by as much as 40%.

The letter has been signed by a huge amount of music luminaries including, Mark Knopfler (Dire Straits) Peter Gabriel (ex-Genesis) Pete Townend (The Who) Robert Smith (The Cure) Giles Martin (producer and son of Beatles legend George) Paul Epworth (Adele's Oscar-winning co-writer) and a host of other musicians and studio owners.

The letter said: “The United Kingdom is famous for its music industry, and part of that is being home to the finest recording studios in the world. British studios have a reputation for world-class facilities, and excellence in production, recording, mixing, and mastering.

“Iconic locations such as Abbey Road, Realworld Studios, and Rockfield have not only given birth to some of popular music’s most celebrated albums, creating the soundtracks to many people’s lives. But they continue to employ scores of producers and engineers whose talent and expertise are sought worldwide.

“Having somehow battled through the ravages of covid, and shouldered soaring energy prices, at least 500 recording studios across the UK are facing incredible hardship due to the demands of business rates. This means more and more positions are being offered to those who can afford to work for free.

“Studios do not have their own business rates classification and are currently classified as office space (the most expensive bracket). This means they do not receive targeted relief, despite their significant cultural and economic contributions. Recording studios cannot pass on increases in costs to clients.”

It comes after the Chancellor’s Autumn budget was met with backlash from the creative industries, after it ignored calls for reduced business rates for UK recording studios, increased rates of Theatre Tax Relief (TTR) for touring productions, and funding for the arts, among others.

The letter detailed: “Simply giving recording studios their own classification within the business rates framework so that the demands are fair and proportionate would address all these issues within existing legislation, at a very limited cost to the Treasury.

“Doing so will not only protect jobs but also create them and maintain the world-class reputation of recording facilities that the UK is famous for. Without action, British music will no longer be made in Britain. We are already seeing British Artists, British producers and British recording engineers forced to go abroad because British studios are closing.”

The MPG has a number of meetings with ministers and MPs lined up over the next few months with the aim of continuing to push hard for a fairer deal for studios.