Festivals face ‘survival threat’ without insurance scheme, MPs warn
Music festivals face a serious threat to their survival unless the government underwrites an insurance scheme covering the risk of cancellation, MPs have warned.
In a report published today the Public Accounts Committee (PAC) warned that festivals were making “difficult decisions” about whether to risk their survival by going ahead this summer.
The MPs added that the government had not modelled the cost of underwriting festival indemnity insurance.
Festivals and other live events have been lobbying for the launch of a government-backed scheme as Covid-related cover is effectively unavailable on the open market.
They have warned that most festivals, concerts and sporting competitions will not be able to take place if there is no cover available.
In April the government launched a scheme to cover the cost of cancellations for events in its pilot scheme, such as the FA Cup final and England’s test cricket match against New Zealand.
Theatre grandees are reportedly close to striking a deal to allow West End performances to go ahead, but a full scheme is yet to be rolled out.
The PAC praised the Department for Digital, Culture, Media and Sport (DCMS) for its £1.57bn cultural recovery fund, describing it as the “biggest ever single investment in the arts and culture sector”.
But the MPs said they were concerned about the ability of DCMS and Arts Council England to manage a £252m ongoing loan book created by the scheme over the next two decades.
They also raised questions over whether the freelancers, commercial organisations and supply-chain businesses essential to the sector had been able to access the support.
“The pandemic has exposed just how poorly departments across government understand the sectors that they oversee,” said PAC chair Meg Hillier.
“DCMS was clear that it ‘would not save every organisation’ but we are concerned about the impact of Covid-19 on those organisations vital to the culture sector — sound engineers, lighting and technical support.
“The government must urgently consider support other than cash, such as insurance indemnity or parts of the sector risk as a second summer of forced inactivity with all the devastating consequences to their survival.”
A DCMS spokesperson said: “Our Culture Recovery Fund – the biggest ever single investment into arts, culture and heritage – has already ensured the survival of more than 5,000 organisations, from commercial theatres to supply chain providers, protected tens of thousands of jobs and helped create work for almost a hundred thousand freelancers. We’re pleased this report recognises DCMS’ achievement in delivering this record investment quickly and accurately.
“More help is on the way following a £300 million boost to the Culture Recovery Fund at the Budget and we continue to explore what further support, including issues around securing insurance, may be required when the culture sector is able to reopen.”