At a time when charities are struggling to survive, crippling music charges look set to hit their income even harder.
New legislation due to become law this month means charities in the district having to pay £1.3 million more in audio licensing fees to continue playing music in shops and at fundraising events.
This week, more than a dozen major UK charities, including the British Heart Foundation, the Alzheimer’s Society, Oxfam, Age Concern and Help The Aged, wrote to Lord Mandelson, Secretary of State for Business, Innovation and Skills, calling on him to reverse the decision.
Charities and other not-for-profit organisations already pay a licence to the Performing Right Society to play music on their premises, but under the new law they’ll be required to pay a licence fee to a second royalties body, PPL. money from PRS for music licences goes to composers and publishers, while PPL collects royalties for performers and record companies.
Charities that hold fundraising discos, tea dances, drop-in sessions or youth clubs with music in the background, or have volunteers listening to the radio while they work, will need to pay for an annual licence of at least £80 for each building.
Maralyn Adey helps to run Bradford charity Bati About Kidz, which arranges holidays for disabled children and their families. She and her son, Kristian, who has Down’s Syndrome, are also involved with charity Second Time Around which supports people with learning difficulties.
“It’s disgraceful that charities are being expected to meet these extra costs, especially when so many are struggling due to the recession,” she says.
“Last year, Second Time Around held a fashion show and some young people involved with the charity modelled the clothes. We wouldn’t be able to hold that kind of event if we had to pay for a music licence. We wouldn’t be able to play CDs on our Bati About Kidz market stall, either.
“Second Time Around has just opened a new charity shop in Keighley, which I’m helping out at. We play music there because it makes it a more pleasant environment, for customers and volunteers. The shop is already trying to stand on its feet and establish itself. They really don’t need this extra charge. “As well as raising vital funds, charity shops provide a recycling role. The Government is telling us to recycle clothes rather than throw them away, yet they’re hitting them with this legislation,” she adds.
“There has to be some goodwill where charities are concerned, especially in the current climate. I urge Peter Mandelson to reverse this decision.”
A spokesman for the Intellectual Property Office, executive agency of the Department for Business, Innovation and Skills, says: “Charities, not-for-profit and other third-sector organisations need to be protected from excessive costs, but we also need to ensure that musicians and performers receive a fair reward for their creativity.
“Charities, like any other organisation, need to pay for services they use, but we recognise that there are differences. PPL have agreed to operate some voluntary exemptions to their fees, meaning that some organisations will pay nothing.
“Fees for others will be decided following consultation, and we would encourage all organisations to engage with PPL and the Community Sector Law Monitoring Group to make their voices heard.”
Andrew Vale, head of retail at Age Concern and Help The Aged, speaking on behalf of the Bradford branch of the charity, says that for many charities, the charges will mean choosing between paying a licence fee or missing out on playing music and radio, “to the detriment of customers, volunteers and staff.”
He adds: “Although the amount of money per shop seems small, across a national chain of charity shops it is significant. Many charity shops rely on audio to create a pleasant atmosphere.”
Shipley MP Philip Davies says: “Many charities struggle to earn the money they need to continue their work in local communities. Anything that takes money away from the funding line can’t be a good thing. I would hope charities would be exempt from this.”
The Council for Voluntary Organisations is running a Don’t Stop The Music campaign to prevent the decision becoming law. Chief executive Stuart Etherington says: “We’re expecting a motion to ratify this decision to go to Parliament any day. This letter shows the Government how broad opposition is and just how badly it will impact on our ability to help the most disadvantaged.
“Thousands of voluntary and community groups already run on incredibly tight budgets and rely on fundraising events to survive. They will rightly wonder how they will afford this extra fee. We are very worried that some will no longer hold fundraising events and may have to reduce services.”
Sarah Woolnough, from Cancer Research UK, which has shops in Bradford and Otley, says: “The costs of proposed changes mean we will have to seriously consider whether we can continue to use recorded or broadcast music at our events.”
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