MPs call on government to assume contingent liability for live events

Forty-three Conservative MPs have signed a letter to the Prime Minister asking that the government take on “contingent liabilities against cancellation and restrictions imposed by the government” so live events can take place this summer.

A letter from MPs Mark Harper, who is also chair of the Covid Recovery Group, and Steve Baker, deputy chair of the Covid Recovery Group, stated: “The live events industry does not require another lump sum from the Culture Recovery Fund.

“It requires insurance – insurance against the political risk, however minimal, that the government will impose restrictions on the industry and its customers after 21 June.”

It warned that if no solution is found, up to 170,000 events professionals could lose their jobs, and highlighted that around 262,000 people work in live music events alone.

The insurance industry does not currently have an appetite to cover live events of this nature.

Costs
The letter repeats calls for a government backed insurance scheme. It detailed: “It would cost a maximum of £250m and given we are on a “one way road to freedom” by 21 June as stated by the Prime Minister, and the Health Secretary said he hoped social distancing rules would be removed by then too, the underwriting should not cost the taxpayer a penny.”

A series of summer 2021 events were announced and tickets went on sale following the government’s publication of its ‘roadmap’ out of Covid restrictions in February.

Last month, alongside industry experts and trade associations, Jools Holland, Depeche Mode, Johnny Marr, Sir Cliff Richard, Robert Plant, Roger Daltrey, Amy McDonald, The Chemical Brothers, Frank Turner, and Judas Priest have all added their name to the chorus of voices calling for a government-backed scheme.

Cancelled
Earlier this week, festival Boomtown, which has a capacity of 66,000 people, was forced to cancel due to lack of cover. Glastonbury and Download had already announced they would not go ahead in 2021.

Boomtown Director, Anna Wade, said: “We are devastated that we will no longer be holding Boomtown this year. With less than four months to go until the event, and after almost half a year of collective campaigning to the Government, sadly Covid specific cancellation insurance simply does not exist.

“This means anyone putting on an event this year, will have to do so without the safety net of insurance to cover them should a decision by the government on Covid prevent them from going ahead in any capacity.”

She said that the festival had received a grant from the Arts Council, but it did not cover the deficit.

Backing
Wade continued: “Whilst the government roadmap remains on track, but the one thing preventing organisers of events and festivals committing deposits for suppliers, including freelancers and production companies, is a government-back scheme.”

Tim Thornhill, director of Tysers Entertainment and Sport Division, said: “We have provided a workable proposal for a government-backed insurance scheme, which will unlock money to the supply chain, taking thousands of staff off furlough backing the confident statements made by the government.

“Using live music and festivals as an example, the scheme that has been designed by the industry would have liability of less than £250m if every single event were to be cancelled for the whole year.”

He said the Boomtown cancellation was “desperately disappointing” and repeated his calls for the government to back insurance for live events.

He added: “We can expect many more events to be lost unless the government begins to heed the sector’s call for intervention.”

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