Call for tax breaks to festivals

There are calls for tax relief and lower VAT on tickets to the festival industry.

The East Anglian Festivals Network (EAFN) says 25 events across the region have been cancelled in 2025.

Amongst the most notable was the Cambridge Folk Festival, run by Cambridge City Council. Papers published by the council show the event made a loss on £320,000 in 2024.

The EAFN, which works with councils and other festival organisers, say costs are increasing, making it difficult for organisers to run a financially sustainable event.

Papers published by the city council earlier this year said the Folk Festival "incurred a provisional loss of £0.32m". Pre-pandemic it typically returned "an average profit of over £0.2m". The profit then funded free community events in the city.

The council said that "while revenues have remained broadly stable, costs have increased significantly as they have for the whole of the UK festival sector".

Those sentiments are echoed by Mike Wilson from EAFN. Talking to the BBC's Politics East programme, he said the 25 events in the region were cancelled "mainly due to the financial impact," predominantly caused by the rate of inflation.

He is ing a call for the government to lower VAT to 5% for festival tickets, to give the industry a boost. He would also like tax relief for festivals, similar to that which theatres can benefit from.

The loss of festivals is having a huge impact on grass roots music according to Justine Hatfield, who works with local musicians. She has worked and performed at the Folk Festival and Strawberry Fair, which was also cancelled in 2025.

"For up and coming artists it's a place where they can show off their talents, meet other artists, collaborations are formed and so without it there is a big gap."

She also ran The Flying Pig, a now closed down pub, which was famous for live music.

Strawberry Fair is a volunteer run event which is free to attend. Like the Folk Festival, it is an event where many up and coming artists get experience of performing to large crowds.

Organisers took the decision to cancel the 2025 event after costs, most notably transport and fuel, increased significantly.

Committee member, Mark Evans, said they were determined to bring the fair back for 2026 but were having to think about how they raise the money. This could include sponsorship, something the fair has previously avoided.

The Cambridge Folk Festival is worth around £2m to the local economy, according to a local councillor.

Tim Bick leads the Liberal Democrat opposition at the city council. He said the council have still incurred losses in 2025 after cancelling the festival due to things like consultancy fees, maintaining websites and running related community events.

He said he really hopes it will make a return next year.

"The event itself is a shared experience. It's a bit of a buzz and excitement. And so many of these things in a tough world are falling away, but valued so much."

According to the East Anglian Festivals Network these are the festivals that are not taking place this year.

Cambridgeshire

• Strawberry fair
• Cambridge Club and Strawberries and Creem Festival
• Cambridge folk festival
• St Neots Festival
• Yaxley Festival
• On the Green Festival Peterborough (new but cancelled)

Essex

• Manningtree Earth Festival
• GDSS Great Dunmow Summer Solstice
• Little scarlet festival Tiptree

Hertfordshire

• Hoovesfest Hertford
• Stone valley festival south
• Wannasee South - Ware

Norfolk

• Deepdale Hygge
• Deepdale Festival
• Gt Yarmouth arts fest
• Holt Festival
• Sundown
• Wyverstone Beer & Music Festival
• HRH AOR
• Breckfest

Suffolk

• Suffolk Walking Festival
• Global Rhythm Ipswich
• Primadonna Festival Stowmarket
• Wyverstone beer and music festival
• Low Collective Car Show Ipswich

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BBC Politics East will be broadcast on Sunday 15 June at 10:00 GMT on BBC One in the East of England, and will be available after broadcast on BBC iPlayer.