Banks clash with proposed cap on gig ticket resale prices

The UK’s live music sector is at the centre of a heated debate after leading banks urged the government to rethink plans to cap the prices of resold concert tickets. Advocates of the cap, including the Competition and Markets Authority (CMA) and fan groups such as FanFair Alliance, argue the measure is long overdue to curb touting and protect fans. However, UK Finance, which represents major banks, warns the proposals could backfire, driving secondary ticketing onto unregulated platforms and fuelling fraud.

Government’s cap proposal faces banking backlash

In January, Culture Secretary Lisa Nandy launched a public consultation on capping resale prices at between face value and a maximum of 30% above the original ticket price. The move was part of Labour’s 2024 election pledge to give music and sports fans a fairer shot at tickets and to end the “misery” of touts hoovering up tickets for inflated mark-ups Ticket resale prices to be capped in crackdown on touts.

But on 5 October, UK Finance published a submission opposing the cap, arguing that strict price limits would incentivise resellers to move their transactions off regulated platforms like Viagogo and StubHub onto social media marketplaces. There, buyers lack the consumer protections offered by established resale sites and face much greater risk of scams. The banks warned these unintended consequences could lead to a spike in ticket fraud and an increase in refund claims under payment protection rules Don’t cap resale prices of gig tickets, banks warn.

CMA and fan groups support price limits

The CMA, in its own submission to the DCMS consultation, voiced strong support for a resale cap—potentially as low as 10% above face value—to “protect consumers from excessive resale pricing” provided the rules are properly enforced. This marked a shift from its earlier stance of merely enforcing existing consumer laws without advocating for hard caps UK watchdog backs plan for cap on price of resale tickets in blow to touts.

FanFair Alliance, the campaign group that has long lobbied for reform, welcomed the CMA’s backing as “potentially game changing” and called on the government to follow Ireland’s example in legislating against profiteering touts. Their research highlighted instances of speculative selling—tickets listed before the seller even possessed them—and widespread misinformation around pricing and seat locations on secondary sites.

Banks warn of unintended consequences

UK Finance represents household names such as Lloyds, NatWest, HSBC and Barclays. In its submission, the group highlighted three main concerns:

Fraud risk on unregulated platforms: Social media and peer-to-peer marketplaces lack buyer guarantees, making fans vulnerable to scams and fraudulent listings.
Growth of black-market sales: Strict caps could push resellers into unmonitored channels where tracking and enforcement are near-impossible.
Operational strain on banks: Payment dispute volume may rise, placing additional burden on customer service and fraud detection processes.

“At face value, we recognise the intent to protect fans,” said a UK Finance spokesperson, “but without addressing these underlying issues, a cap may end up doing more harm than good.”

What ticket platforms say

Secondary ticketing platforms have also voiced strong opposition to hard price caps. StubHub International’s chief executive has warned it may withdraw from the UK market entirely if margins are restricted to 30% above face value, citing the significant costs of fraud prevention and customer support that such caps would make unsustainable for its business model StubHub threatens UK exit if government imposes reseller ticket price caps.

Viagogo, meanwhile, maintains its compliance with UK consumer protections and says it will engage constructively with the government’s consultation. The platform argues it offers legal, transparent resale options with guarantees—features that would be lost if transactions move to informal markets.

Impact on fans and the live music economy

Opponents of the cap warn that unused tickets and empty seats could become more widespread, hitting secondary revenues that support thousands of jobs across travel, hospitality and local economies. A report by the Centre for Economics and Business Research estimated a potential £183 million drop in economic activity if reselling margins were capped too tightly, as some fans choose to hold onto unused tickets rather than risk non-compliance Study warns cap could fuel fraud and cost economy.

Yet, music fans remain largely in favour of some form of cap. A survey of over 8,000 concertgoers found 91% support banning resales above face value, and 97% back the ability to resell at cost Music fans in favour of resale cap, says survey. Grassroots venues, meanwhile, have welcomed the idea of redirecting a small levy back into the live music ecosystem, echoing recent voluntary £1 levies introduced by arenas such as the Royal Albert Hall.

What’s next?

The DCMS consultation remains open until late October. Officials will consider submissions from banks, CMA, resale platforms, artists, promoters and fans before finalising detailed proposals. Key questions include:

What should the maximum resale uplift be? (0–10%, 10–20% or 20–30% above face value)
How to enforce caps on social media sales?
Measures to prevent booking fees rising to offset cap-related losses.
Exemptions for charitable and fan-to-fan sales.

With the government keen to deliver on its promise to curb unscrupulous touting, the challenge will be balancing fan protections against unintended market distortions. Live music industry bodies and consumer groups will watch closely to see if the final legislation can effectively deter profiteering while keeping the secondary market legitimate and secure.

In summary

The debate over capping ticket resale prices has intensified as UK Finance and major banks warn of a potential shift to unregulated platforms and higher fraud risks. Despite these concerns, the CMA and fan groups back hard caps to protect consumers from inflated mark-ups. The DCMS consultation will determine the details, but the outcome will shape how millions of music lovers access live events and how the secondary ticketing market operates in the years ahead.