Recording studios could be closed due to soaring energy prices – News

Music spaces, including recording studios and venues, are suffering from rising energy prices, music industry executives have warned.

General Manager of British music Jamie Njoku-Goodwin said music week that many key institutions could be forced to close, with some expecting to see bills rise by 300-740%.

The government has promised to help households and families facing rising energy costs by price capswhich could increase to 80% in October.

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However, no price caps have been put in place for companies in the music, entertainment and hospitality sectors.

Jamie Njoku-Goodwin is urging the government to cut VAT from its current rate of 20% and extend business aid to provide a lifeline to struggling music businesses.

The Music Venue Trust (MVT), which surveyed its 941 members, found that venues face an average 316% increase in fuel costs, bringing the average fuel bill cost per venue to 5,179 £ per month, compared to the existing average of £1,245. .

One site received a fuel quote of £42,000 a year, a significant increase from its previous expenditure of £13,200. The supplier also said they would only accept full payment up front.

“Skyrocketing energy costs have created an existential threat to venues and music studios,” says Njoku-Goodwin.

“There is an urgent need for government action to support businesses with the costs they face. We’ve all seen how miserable life was without live music during the pandemic when venues were closed for months – the high cost of energy bills could now shut them down forever.

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Adding to this, Cameron Craig – Executive Producer of Music Producers Guild – said: “As an industry particularly hard hit by the pandemic, we have discovered how financially most independent recording studios are doing.

“The unprecedented rise in energy costs is just another blow to a sector that has just found its feet in a post-pandemic recovery, once again creating an uncertain future. We call on the government to help the recording industry or lose an integral part of the UK’s cultural and creative capital.

Aneesa Ahmed is Mixmag’s digital intern, follow her on Twitter