The following Statement was made in the House of Commons on Monday 13 January.
“With permission, Madam Deputy Speaker, I would like to make a Statement about ticketing in the live events sector.
In the words of the musical ‘Hamilton’, there is nothing quite like being
‘in the room where it happens’.
I would hazard a guess that every single one of us here can remember the first time we went to a live event. My first rugby international was Wales versus Scotland at Murrayfield aged 12—the food was terrible. My first live gig was U2’s ‘The Joshua Tree’ at Wembley arena. These moments of shared passion are part of what makes us the people we are. As Gloria Gaynor said,
‘There’s nothing to compare to live music, there just isn’t anything’.
No wonder live events are so highly prized.
But for far too long, ticket touts have leached off fans’ passion. In the past, it was spivs in long raincoats at the gates. Nowadays it is a trade made all the more pernicious by the internet, which enables modern-day touts, hiding behind multiple false identities, to hoover up tickets and sell them at vastly inflated prices. It is indefensible. It trades off other people’s hopes and does not return a single penny to the artists, the performers, the venue, the industry or the sport. We said we would tackle this, and that is precisely what we are doing.
On Friday, the Department for Business and Trade and the Department for Culture, Media and Sport published a consultation on the resale of live event tickets and a separate call for evidence on pricing practices in the live events sector. It is not a consultation on whether to act; it is a consultation on precisely how we should act. The UK has a world-leading live events sector. Our artists, festivals and venues bring joy to audiences across the country. Last year, the sector employed over 200,000 people, contributing to local economies up and down the country, from stage technicians and sound engineers to venue staff and promoters. Every event—whether a major stadium event or an intimate gig at a grassroots venue—injects life into local communities and economies, supporting small businesses and generating significant revenue for our towns and cities. It is musicians, performers and athletes who make the events what they are and who create the value that sits behind them, not the ticket touts.
Live events are a catalyst for creativity, too, where artists have a platform to hone their craft and relate directly to audiences, as well as to earn a living. Live performances create unforgettable shared experiences that transcend cultural and social boundaries, uniting communities up and down the country and shaping our national identity. However, too many fans are missing out on opportunities to experience those live events. Put simply, the ticketing market is not working for fans.
The Government recognise that a well-functioning ticket resale market can play an important role—for instance, allowing those who cannot attend an event to give someone else the opportunity to go in their place. But far too often tickets are listed on the resale market at extortionate prices, many multiples of the face value. Just one example: standing tickets for Charli XCX’s current UK tour were originally priced at £54, but they have been listed on ticket resale sites for as much as £400. That is enough, as she herself would put it, to ‘Shock you like defibrillators’.
So-called scalping is the work of organised touts, who systematically buy up tickets in bulk on the primary market then resell them to fans at hugely inflated prices. The Government are committed to putting fans back at the heart of live events and clamping down on unfair exploitative practices. In doing so, we want fairness for fans and an economically successful live events sector. We made a manifesto commitment to act on this issue, and that is precisely what we will do.
That is why we have launched a consultation as the first major step towards delivering on this ambition. We want to act in an effective and responsible way, ensuring that any new protections work for fans and the live events sector. The consultation outlines a range of potential options to address ongoing problems. We are revisiting the recommendations from the Competition and Market Authority’s 2021 report on secondary ticketing that were not taken forward by the previous Government. They include a licensing regime for resale platforms, new limits on the number of tickets that individual resellers can list, and new requirements for platforms to ensure the accuracy of information about tickets listed for sale on their websites.
We are also keen to tackle scalping—that is to say for-profit resales of tickets above face value. That is why we are considering a statutory price cap on ticket resales, as seen in many other countries. Its purpose would be to break the business model of organised touts by prohibiting resale at vastly inflated prices. In the consultation, we ask how a price cap should be designed and implemented, so as to deliver a genuine sea change in the ticketing landscape to the benefit of fans and the live events sector, and whether it should be face value only, or plus 10%, 20% or 30%.
There is one other aspect—we might call it ‘the Oasis moment’—on which we are seeking evidence. The live events sector has adopted new approaches to selling tickets in recent years, including the use of new pricing strategies, and technologies such as dynamic pricing. I want to be absolutely clear: not all dynamic pricing is harmful. Fans often take advantage of early-bird tickets and last-minute price reductions—that is absolutely fine and we have no intention of stopping it. The key thing is that fans are treated fairly and openly, with timely, transparent and accurate information presented ahead of sales.
To better understand these changes and the challenges faced by fans, we are publishing a call for evidence on pricing practices in the live events sector. The consultation and call for evidence will be open for 12 weeks. We strongly encourage all interested stakeholders—fans, artists and performers, ticketing platforms and the wider live events sector—to respond. Once the consultation is complete, we will decide on next steps, but the House should be no doubt that we intend to act.
We have a world-class live events sector in the UK, but we do not have a secondary ticket market to match. In the words of T. Rex:
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