Bill on Royal Albert Hall seatholders' ticket reforms backed by MPs
Conservative former culture secretary Sir John Whittingdale, who spoke in support of the Bill, said the hall's 'unique' funding model, which included the sale of debentured seats to fund its 19th century construction, was an asset to the institution.
Roughly a quarter of the Albert Hall's seats fall into a category of being owned by long-time members. The 316 owners pay an annual seat rate, which this year was £1,880 plus VAT. It brings in about £2.3 million for the venue every year, Sir John said.
He said the current arrangements meant on about 100 designated events each year, known as 'executive lettings', the owners give up their 1,268 seats for the venue to sell.
They can also forgo their seats on other, non-specified occasions, boosting the venue and its charitable arm's coffers.
However, there has been concern that the seat owners can personally sell tickets for their seats for other lucrative events on the resale markets for thousands of pounds.
The Bill will amend the Royal Albert Hall's constitution to codify the practice of members forgoing their right to attend events.
It will protect the hall from legal challenge over the voting process from seatholders over which concerts will be selected.
Sir John, a former trustee of the venue, said: 'A seat in the hall is a property asset, and in the same way that if one's grandfather purchases a property which their descendants then eventually decide to sell, it is highly likely they will retrieve an amount of money way greater than the original investment.
'These are property assets, essentially, without which the hall could not have been built. But it was on that understanding, it was on an 999-year lease, and those who own that lease are, of course, entitled to do what they wish with it.'
Labour MP Sharon Hodgson (Washington and Gateshead South) cited tickets for an Ed Sheeran concert which had been sold online for nearly £6,000.
Ms Hodgson said: 'I was therefore horrified when tickets for events at the Royal Albert Hall, one of our country's most recognisable and cherished institutions, started appearing on sites such as Viagogo.'
She said a 10-seat box was advertised for sale online recently for £3 million.
The change needs to be approved in Parliament, because it will amend the Royal Albert Hall Act 1966.
The Harold Wilson-era reforms put into law rules around the repair and maintenance of the venue – as well as rights of seatholders.
The proposed legislation, which started in the House of Lords, was passed unanimously in the Commons at second reading. It will now return to be debated by peers.
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