It proposes a sliding scale of fees, dependant on the numbers attending. The minimum fee is £5,000, with, for example, an event for 30-40,000 people facing a £15,000 charge, and a £50,000 fee would be payable for events with more than 75,000 people. Payment is expected in advance to get a licence.
The fee is payable to the local council to cover the costs of health and safety checks by officials at the event. Many councils already charge for the administration of these events, but charges are sometimes waived for charity events. Mendip Council, which regulates Glastonbury Festival, already re-coups its full regulation and monitoring costs from the festival.
The Times has John Whittingdale, the Conservative culture spokesman, saying that he would raise the issue as a matter of urgency in the Commons, adding: This is another Labour stealth tax. A vote for Labour at the general election will be a vote for a tax on fun. This is somewhat laughable opportunistic political points scoring though, bearing in mind the Tories fondness for things directly paying their way.
However, as many of the sites for such events will already be paying increased business rates based on the events held, it does seem that some places will in effect be paying twice.
This new fixed charge will threaten the viability of many events, even though a surcharge on individual tickets to cover this new fee would be minimal. The main problems will be faced by smaller organisations, who will struggle to find the up-front payment prior to events being held.
It does seem unfair that local council tax payers have, until now, had to bear at least some of the costs of regulating and monitoring events in their area. But from the other point of view, these events bring often large financial benefits the the communities living around them, and many events are aimed directly at entertaining those locals.
The charges are, so far, suggestions in a consultation paper. Time will tell if they're to go ahead.