Hope on music licence fees

Six out of 10 small music venues on a specific tariff from PRS for Music would see fees drop under new plans.

So says the music licensing body, which has proposed altering the fees structure for venues on the Tariff LP. This applies to ticketed popular music events and includes many pubs.

A new consultation proposes reducing the minimum charge from £32 to £15 plus VAT per event.

A new capacity-based fee for venues with average admission charges below £5 is also proposed.

Bars would not pay the usual charge, which is 3% of gross ticket receipts. Instead, a flat fee of £10 per 100 capacity is suggested, although the £15-plus-VAT minimum charge would remain.

However, there could be a sting in the tail for venues that don't fall within this group. PRS asks whether a higher percentage of ticket receipts should be used to calculate fees, saying the UK's rate of 3% is the lowest in Europe.

Also proposed is a 50% surcharge for events where a licence has not been obtained in advance.

New audits of venues are also suggested.

These would require pubs to provide a schedule, certified by an accountant, confirming total receipts for events.

If discrepancies are found, the licensee must pay outstanding charges, plus interest and audit costs.

Other proposals include: discounts based on the proportion of non-music content; scrapping the need to pay licence fees within two days for venues with on-going licences that pay and give programme details on time; demanding that new licensees, or those that don't pay or disclose information on time, must pay fees seven days before events.

The consultation, which can be found at www.prsformusic.com, closes on 7 September.