The U.K.’s live music industry should introduce a levy on arena and stadium concert tickets to support the grassroots music sector, per a report from the new Labour Government backing the proposal.

The suggestion was first introduced in a report on the issues facing grassroots music venues published by the Culture Media and Sport Committee in May. The British Government responded to the recommendation, agreeing that the levy would be the “quickest and most effective mechanism” to support the grassroots sector and ensure the “health and future success” of the U.K.’s live music ecosystem.

The Government is recommending that the levy be voluntary and led by the industry for potential use in 2025. The music sector is being encouraged to invest in an independent evaluation to assess the effectiveness of its impact.

If action isn’t taken, the Government says it’s willing to use its “convening powers” to bring people to the table to start the process, if necessary. It will also consider progress made on the implementation and effectiveness of a levy and whether further action is needed to support a sustainable grassroots sector.

Mark Davyd, CEO and founder of the Music Venue Trust, welcomed the news. “We strongly support [the Government’s] stance on the necessity and desirability of a grassroots contribution and believe this response sets out a clear and achievable path for the live music industry to swiftly adopt such a contribution,” he said.

“Everyone knows grassroots live music is in crisis. The current situation is untenable," added Music Managers Forum CEO Annabella Coldrick. "Every week I hear from music managers trying to do the impossible and bridge catastrophic shortfalls in their artists touring budgets. A ticket levy on all large-scale live music events to support touring artists at this level to get out on the road remains the most practical solution. It is now imperative that we in the industry stand up and deliver it.”