Music licensing fee change put on hold

Plans to remove the charity exemption from music licensing fees have been put on hold because there isn't enough time to change the law before the general election.

The change, which NCVO has been fighting, would allow licensing authority Phonographic Performance Limited to charge charities and community groups to play recorded music and radio stations in charity shops and at events.

It could cost the sector an estimated £20 million, politicians have warned.

The change is to be introduced by a parliamentary measure known as a statutory instrument.

MPs must be given 40 days to object to a statutory instrument after it has been discussed in the House of Commons.

Because the motion has not yet been tabled, there will not be time for it to be passed before Parliament is dissolved on 12 April.

The earliest the plan could now be put before the House of Commons is 18 May. It would then pass to the House of Lords for approval.

Liz Atkins (pictured above), director of public policy at sector umbrella body the NCVO, said:

"The good news for the sector is that both Angela Smith for Labour and Nick Hurd for the Conservatives have made it clear they would like to see a fair agreement between PPL and the voluntary sector before the statutory instrument is laid before Parliament.

"We are continuing to push for an exemption for the smallest charities as a minimum and will no doubt continue our negotiations with PPL in the coming months."

While charities and not-for-profit organisations have always had to pay licensing body PRS for Music, which collects royalties on behalf of music writers, composers and publishers, the Government has now proposed they should also pay a fee to PPL, which collects royalties on behalf of performers and record companies.

If agreed by Parliament, the charge, charities would be forced to pay the fees if they play recorded music in their own premises. This includes fundraising discos, tea dances, drop in centres where music is on in the background, where volunteers are listening to music in the back of charity shops or for staff Christmas parties. Every charity shop or building will be charged individually.

A total of 103 MPs have signed a motion in Parliament calling for charities to maintain an exemption from paying this fee. A total of 805 people have signed a petition on Number 10 Downing Street's website and 483 people have joined a Facebook group opposing the change.

• To see the No 10 petition visit: http://petitions.number10.gov.uk/dontstopthemusic/
• To see the Facebook group visit: http://www.facebook.com/group.php?gid=274770375866&ref=nf