As if the night time leisure industry wasn’t under enough pressure, the new PPL tariffs could see many nightclubs fold under financial strain.
In a week where stats show pub and bar numbers are plummeting at an alarming rate, NDML write this article to encourage venue owners to stand together and oppose unfair tariffs and new legislation (see Hackney council).
Without going into too much detail for those that already knew, PPL (Phonographic Performance Limited) collect money from venues on behalf of performers and record labels for playing their music. Nothing unfair about that.
The tariffs the venues paid were always calculated on a ‘fee per person’ basis. Again, this seems entirely fair – the bigger the venue and the more paying customers, the higher the fee.
However, that fee calculation method has been revisited and adjusted so that, in basic terms, instead of a venue paying per person, they pay per 25 people. And payments are made at the top level of that 25 as well.
Put simply, a venue of 26 people will now pay the same PPL tariff as a venue of 50, even though the second venue could potentially have double the number of paying customers.
This increase in cost could put smaller venues under genuine financial pressure.
This seems to be yet another ‘penalty tax’ on the night time leisure industry that doesn’t reflect the huge benefit the sector delivers for the economy.
There appears to be a determination to fine venues for giving people a place to have a good time.
We have to fight against it.
Alongside the NTIA, NDML are fighting the cause for venues throughout the UK. With our Business Protection Insurance, we give venues the legal and financial backing to stand their ground.
If you’d like any more information about the unfair PPL changes, or how to fight other pressures affecting your club, contact us today.