Banks warn government not to cap resale prices of gig tickets

Britain’s leading banks have warned the government against capping the resale prices of concert and event tickets, claiming the move would push ticket touts and fraudulent sellers onto unregulated social media platforms.

In a submission to ministers, UK Finance, the trade body representing Lloyds, NatWest, HSBC, Barclays and more than 300 other financial institutions, said proposed ticket price caps could backfire by driving “tout activity” away from regulated platforms such as Viagogo and towards sites like Facebook Marketplace, where fans are more exposed to scams.

While regulated resale platforms offer buyer guarantees and refund policies, informal online marketplaces typically do not — leaving victims of fake ticket scams to claim compensation directly from their banks under consumer protection rules.

Government plan aims to protect fans from inflated prices

The warning comes as the government prepares to decide whether to introduce a cap on second-hand ticket prices — a flagship Labour pledge first made by Sir Keir Starmer before last year’s general election.

A consultation launched in January proposed several options, including limiting resale prices to between 0% and 30% above face value. That would mean a ticket originally priced at £100 could be resold for no more than £130.

Supporters argue the reform would stop fans being priced out of live events after tickets for major acts such as Ariana Grande were seen reselling for up to £400 — more than triple their original price.

However, critics, including banks and secondary marketplaces, warn that the policy risks unintended consequences that could harm consumers and legitimate resellers alike.

The proposed cap threatens the business models of Viagogo, StubHub, and other ticket resale platforms that profit from commissions on second-hand sales. These companies were originally designed to allow fans to resell unwanted tickets but have since faced criticism for facilitating large-scale touting.

Viagogo — owned by the recently listed StubHub in the US — has been lobbying hard against the government’s plans, which also include potential restrictions on the number of tickets that individual sellers can list.

Now, the company has found an unlikely ally in the banking sector. In its submission, UK Finance cited research by Bradshaw Advisory claiming that price caps introduced in Ireland and Australia “failed to protect consumers or lead to good outcomes.”

That report, commissioned by StubHub International, has been fiercely criticised by campaigners as biased. Adam Webb, campaign manager for the FanFair Alliance, described the findings as “misguided”, adding: “UK Finance should speak to actual experts in those countries, not rely on the self-interested research of offshore resale websites that exploit British audiences.”

Banks warn of fraud risks if touts move to social media

UK Finance argued that stricter resale limits could trigger a surge in ticket scams as touts migrate to social media platforms. “Any increase in fraud and scams as a result of price caps will expose consumers not only to financial losses but also to emotional harm,” the organisation said.

The body urged the government to consider tighter controls on social media platforms, including mandatory validation checks for ticket listings and clear warnings that ticket sales are banned on sites such as Facebook and Instagram due to “the high-risk nature” of the activity.

A government spokesperson said ministers remained committed to clamping down on ticket touts.

“We are committed to clamping down on touts, and through our Plan for Change, we will go further to put fans back at the heart of live events,” the spokesperson said. “We are considering the evidence provided in response to our consultation and will set out our plans soon.”

The decision will determine whether Labour’s Plan for Change delivers on its promise to reform Britain’s ticketing market — or sparks a new confrontation between fans, financial institutions and tech platforms over who bears responsibility for consumer protection.

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Banks warn government not to cap resale prices of gig tickets