On this subject, I saw a mate of mine last month for the first time in two years. He’s the manager of a pretty sizeable group - arena level with number one albums to their name. Told me that the band has just recently moved its operational headquarters to Leipzig, which is where it now keeps most of its gear and equipment so that it’s inside the EU, as well as where their European touring revenue will be paid and therefore taxed. Means that they don’t have to fill out any customs forms every time they cross a border in relation to their cargo, as it’s all EU-based cargo.
They’re also looking into downsizing their UK merch operations in terms of e-comm and moving most of their fulfilment and stock base to Leipzig as well, as they sell more shirts and hoodies etc to mainland Europe combined than the UK, meaning all these different customs issues and scattergun fees that keep popping up just aren’t sustainable. So that means less sales tax and VAT collected by the British government as well as less work for British manufacturing and fulfilment firms, as they’re going to go from having 100% of the work to nearer 50%. They’ll continue to print their touring merch for UK shows here, but whereas before they would use UK-produced merch and carry it with them, and UK firms would control the on-road top-ups when stocks ran low, now they’ll be using German companies for anything on the continent, again due to them being EU goods just like the equipment. More money lost for British industry. This will become the template for any touring act of any significance and will lead to a sizeable reduction in revenue for the treasury. There’s no way of making that money back, it just moves overseas.
As for the VISA offer, that only applies to movement of the person in principle. It gets them over the border without having to go to embassies to get work permits in advance - that is about it. It has no meaningful detail in terms of commercial goods fees or charges on revenues generated from merchandise sales, or equipment needing to be declared and moved through borders every day or two. There is still also an ongoing and very confused conversation about insurance requirements taking place beyond that, because various companies are now saying their policies are only valid for one side or the other. Regardless, the UK will now make much less money from its own artists and associated sectors and industries, and there is no way to offset those losses.
It is what it is.
#askingforafriend
