Music label Beggars sounds alert over Brexit

The music group behind Mercury Prize-winning soul pianist Sampha on Thursday sounded a Brexit warning.

Beggars Group, which houses labels including 4AD and Rough Trade, said it was worried over “restrictions on passage for staff and artists”, tariffs costs, duties and withholding taxes on royalties and the cost of board regulations.

Its directors said: “Revenues from the EU are a critical element of the business. Therefore, it is of some concern that the arrival of Brexit may hold back further growth.”

The group is also concerned about rights. “Beggars Group has always maintained strong community links with fellow EU-based independents, and we value the effectiveness of collective European regulatory influence over powerful US technology companies.

“We are concerned with the uncertainty around post-Brexit plans for adopting EU Directives and Regulations that currently serve to protect out IP rights.”

The music industry’s concerns over Brexit have centred upon touring. Earlier this year BPI chief executive Geoff Taylor said: “Government must ensure our musicians are able to tour freely even after we leave the EU. We should also make the UK the best place to invest in new content by forging an online environment that is safe for consumers and where illegal sites cannot flourish.”

Accounts for 2017 showed the group’s revenues improved to £72.4 million from £70.6 million in 2016. Pre-tax profits dipped from £12.6 million to £8.2 million.

The company said the year’s highlights included its XL imprint’s reissue of Radiohead’s seminal OK Computer and debut albums from Sampha and punkish Nottingham duo Sleaford Mods.