The British Beer & Pub Association (BBPA) has today responded to a decision by Phonographic Performance Limited (PPL), which will see the tariff on the Specially Featured Entertainment (SFE) licence increase by 130% on average.
The SFE licence is used by pubs, nightclubs, cafes and hotels who feature DJs and dancefloors.
Brigid Simmonds, BBPA's Chief Executive, said, “We are extremely disappointed by PPL’s decision to raise the tariff on the SFE licence by 130% on average.
“The night time economy is vital to the future of our high streets, but businesses that are crucial to that night time offer like pubs are already struggling, with on average three pubs a day closing their doors for good. This decision will be another big blow to hospitality businesses that are struggling to survive.
“For the past 18 months we have been in discussions with PPL and have highlighted how the changes proposed to the tariff would be disproportionate and unwarranted. Whilst PPL have addressed some of these points, our fundamental concern is that increases by 130% on average, and in some cases much more, are not sustainable.
“The SFE tariff has consistently grown already through annual RPI increases, which is an increasingly discredited inflation index and is consistently a percentage point above CPI. As a result, those who have been paying SFE licences over the years have already been paying more than their fair share.
“We will consult with our members and the wider hospitality industry in more detail on these unreasonable increases. Copyright charges are established by law, but average increases of 130% that undermine the viability of pubs, clubs and the night time economy are not justifiable.”
