November 16, 2025
4 mins read

‘British music industry adds £8bn to economy’

Industry hails record growth but warns government action is needed on AI and post-Brexit touring barriers

The UK music industry contributed a record £8bn to the economy in 2024, driven by blockbuster tours and growing overseas demand for British artists, according to new figures from UK Music. The umbrella body, which includes organisations such as the BPI and PRS for Music, reported that the sector’s total contribution to UK GDP rose 5% from the previous year’s £7.6bn.

The latest annual report credits the surge in part to major live events, including the UK legs of Taylor Swift’s Eras tour and Take That’s stadium shows, which generated substantial revenue through ticket sales, tourism and associated spending. The total also incorporates income from recorded music across sales, streaming, commercial partnerships and other sources.

UK artists continued to make significant headway internationally, with the report highlighting the strong overseas performance of Charli xcx, whose “Brat summer” became one of the defining cultural moments of the year. Music exports rose to a record £4.8bn, another 5% increase. Industry figures expect the upward trend to continue, supported by high-grossing stadium tours by Oasis, Coldplay and Dua Lipa.

Foreign secretary Yvette Cooper described music as “one of the most powerful expressions of our soft power in action” and said she was “deeply grateful for the role that the UK music industry plays in promoting British culture around the world”.

Employment in the sector also grew. UK Music reported a net increase of 4,000 jobs, taking the number of full-time roles across the industry to 220,000. The number of people directly involved in music creation — musicians, composers, songwriters, producers and engineers — rose 2.9% to 157,800. However, the data reveals ongoing financial pressures for many working creatives: 43% of those involved in creating music earn less than £14,000 a year from their craft, highlighting concerns about sustainability and income inequality within the sector.

In her foreword to the report, Cooper pointed to the government’s £30m Music Growth Package as a significant boost to the domestic industry. She also emphasised music’s role within the British government’s Soft Power Council, established by her predecessor David Lammy with the culture secretary Lisa Nandy, describing it as a key mechanism to advance Britain’s international cultural and economic influence. The 26-member advisory body brings together figures from music, sport, tourism, heritage and the arts, with UK Music chief executive Tom Kiehl among its members.

But Kiehl cautioned that government recognition alone is not enough. “While it is brilliant news that the government now acknowledges music as a high-growth sub-sector, ultimately the government needs to be judged in terms of the progress it makes in regulating artificial intelligence and unlocking EU touring. The status quo on these two big issues is currently tilted against music’s interests.”

The report sets out the severe impact that post-Brexit restrictions have had on musicians and crews, with increased bureaucracy and spiralling costs making it significantly more difficult to tour across the EU — historically one of the most important live markets for UK artists. A UK Music survey of about 1,300 musicians, published alongside the financial data, found widespread frustration over reduced invitations to perform, mounting administrative hurdles, and a decline in royalties as opportunities to play live in Europe diminish. Musicians also reported growing delays and higher costs associated with securing visas for performing in the US.

In response, UK Music is renewing calls for a UK-EU agreement that would waive visa and work permit requirements for musicians and touring staff and reduce the cost of “carnets” — the permits required to transport instruments and equipment across borders. The report also urges the government to pursue a reciprocal visa arrangement with the US to reduce fees and improve the touring environment for UK acts.

The industry is also grappling with the rapid rise of artificial intelligence, which the report notes could have far-reaching implications for employment, copyright and the creative economy. Some fear that sophisticated AI tools pose a direct threat to human artistry by replicating or automating skills previously unique to trained professionals. AI-generated music is also gaining traction among listeners, creating new competition for audience attention and potentially reshaping royalty distribution.

UK Music’s survey presents a divided picture of attitudes towards AI. The majority of artists and performers surveyed said they do not use AI and have no intention of doing so. However, producers appear much more open to the technology: more than two-thirds reported that they already use AI tools or would be willing to adopt them.

Despite the challenges, the record-breaking figures underline the music industry’s growing economic clout and its central role in Britain’s cultural identity. The report concludes that with the right support — particularly on touring and AI regulation — the sector has the potential to deliver even greater gains for the UK economy in the years ahead.

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