Scotland’s electronic music industry is worth £550m to the economy.
That's according to a report commissioned by the Night Time Industries Association (NTIA) to examine the economic contribution and the cultural significance of the sector to the UK economy.
It found that the total measurable economic impact of electronic music in the UK - including concerts, festivals, and nightclubs - is estimated at £2.63bn.
This included £550m contributed by the industry in Scotland, with the estimate based on figures for last year.
Mike Grieve, chair of NTIA Scotland and director of the Sub Club in Glasgow, said: “Electronic music has been an important contributor to the social and economic wellbeing of the Scottish economy for decades, with established entities in our towns and cities producing significant artists and music output from the Highlands and Islands to the Borders and all points in between.
“Without the clubs, venues, promoters, artists, labels and studios across the nation, the vibrancy of Scotland’s music scene would be very much diminished.”
He said that Glasgow, Dundee, Perth, Stirling, Edinburgh, Aberdeen and Inverness have all contributed to Scotland’s electronic music economy over the last three and a half decades.
Grieve added: “We can point to the biggest selling electronic music artist in the world, Calvin Harris, coming from the Scottish Borders, cutting his teeth producing music at home in Dumfries in the early noughties, before playing out to Scottish club audiences and ultimately selling out stadiums worldwide as one of the UK’s biggest ever musical exports.
“This report makes clear how vital it is that this cornerstone of Scotland’s modern musical heritage is respected and protected and that the true value of electronic music to our communities and economy is appreciated and nurtured.”
The report was written by David Boyle, director of Audience Strategies, an agency that uses data to help artists and brands to understand their audiences and trends.
It found that the UK is the second largest music exporter globally, with 10% of all music streams worldwide attributed to British musicians.
Exports of recorded music from the UK hit a record high of £590.8m in 2021, with £41.2m being electronic music.
Lindsay McIntyre, director of KSG Acoustics, said: “This crucial report shines a spotlight on our culturally vital electronic music scene and the value it has to Scotland’s economy.
“As a provider of technical services to the music industry in Scotland, we have watched it grow and flourish and the artists, venues and events we support underline the creativity and social cohesion unique to this part of the live events sector.”
A separate report from the NTIA stated that the current cost of operating is placing an insurmountable amount of pressure on night time economy businesses.
More half are seeing increased trading costs of over 30% - compared to pre-pandemic - with over 70% of businesses in the current climate either barely breaking even or losing money, leading to an estimated one in four independent and culture businesses being lost in the next six months.
Businesses that would traditionally be profitable have been placed in an inflationary circle, where operating costs have been passed on by suppliers, which are similarly trying to deal with onerous costs, but market constraints limit the ability to pass on these costs through price increases to our customers, without a severe impact on trade.
CGA AlixPartners research figures show a 13% contraction in independent businesses, compared to only a 3% contraction in managed businesses.
The NTIA's Night Time Economy Report highlighted that in 2018 there were approximately 425,000 UK jobs and 38,000 businesses in the sector, which fell to 392,000 jobs and 34,000 firms in 2021.
Ahead of the next UK Budget, the group called on the Chancellor today to consider the following support for the upcoming budget:
- Reduce VAT rate to 10% for the hospitality, late night economy & events sector for the next 12 month - including alcohol, accommodation, food and tickets within the relief.
- Lower the Business Rates Multiplier in recognition of the important role that night time and hospitality businesses play within communities.
- Restructure the Energy Relief Scheme to deliver fair and reasonable energy rates to businesses across the sector, with consideration given to independent and cultural businesses.
NTIA chief executive Michael Kill commented: “It is heartbreaking to hear of so many businesses being lost, and the potential to lose so many more.
“The government must recognise the importance of these independent businesses and culture in all its forms, and support them in the coming budget by lowering VAT, readdressing the business rates structure and reevaluating the energy relief scheme to ensure these businesses have the financial headroom to survive because when they are gone, they will never come back.”
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