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Taylor Swift's Eras Tour was a huge success in the UK. AFP News

Music is enjoyable for listeners, but it also delivers significant benefits to the economy. According to the latest 'This Is Music 2025' report by UK Music, the British music industry contributed a record-breaking £8 billion to the UK economy in 2024. This marks a substantial boost to the country's GDP, highlighting the sector's importance as a driver of economic growth.

Major events such as Taylor Swift's Eras tour, along with performances by Bruce Springsteen, Liam Gallagher, Take That, and Girls Aloud, drew large crowds and boosted revenue. UK music exports also reached a new high, topping £4.8 billion, with British artists captivating audiences abroad.

Employment Growth and Industry Challenges

The industry's employment figures reflect this success, with full-time equivalent (FTE) jobs rising 2% year-on-year to 220,000. However, despite these positive numbers, industry insiders remain cautious about the future.

Tom Kiehl, CEO of UK Music, warned that numerous challenges threaten to undermine the UK's position as a global leader in music. These include economic pressures, changing consumer habits, and industry-specific issues.

Slowing Growth and Development Concerns

The UK music industry's Gross Value Added (GVA) increased by 5% from £7.6 billion in 2023, compared to a 13% rise the previous year. This slowdown indicates a deceleration in growth for both GVA and exports.

Weak touring schedules and a lack of major releases by British artists have been cited as reasons for the decline. Additionally, the report highlights that artists are taking longer to achieve breakthrough moments, a trend seen not only in the UK but also in the US and other international markets.

Rising Costs and Income Challenges

Touring remains a vital income stream for artists, but rising costs and shrinking grassroots venues are creating barriers. Many emerging artists are discouraged by low earnings and rising expenses, while music venues and recording studios face financial pressures.

UK Music's survey of industry stakeholders revealed that Brexit continues to impact the sector, with around 32% reporting it has affected them. Notably, 95% of respondents experienced a drop in earnings in 2024, up from 87% in 2023.

Another pressing issue is artificial intelligence (AI). Creators are concerned about protecting their work from unauthorised use and profiteering. About 90% of those surveyed support measures to safeguard intellectual property rights.

A Growth Sector with Future Potential

The UK government recognises the cultural and economic significance of music, listing it as one of eight key growth sectors within the creative industries. A £30 million package over the next three years aims to support emerging talent, while new taxes on arena gigs are intended to fund grassroots initiatives.

Yvette Cooper, UK Foreign Secretary, praised the sector, saying, 'The UK music industry remains one of our greatest international success stories.' High-profile artists such as Ed Sheeran, Eric Clapton, and Coldplay have called on the government to prioritise music education and industry support.

Despite these efforts, UK Music urges further government action to ensure sustainable growth. Key priorities include addressing AI challenges, easing barriers for cultural exchange with the EU, and developing a comprehensive international strategy to enhance exports and competitiveness.

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