UK record label income grew in 2017 at the fastest rate since the height of Britpop, according to a new report.

The BPI (British Phonographic Industry) has published its annual All About The Music report, with record label trade income reported to have risen last year by 10.6% to £839.4 million.

It’s the fastest rate of growth since 1995 when revenues increased by 10.7%.

However, total income remains nearly one third lower than in 2001, when record label income peaked at £1.2 billion.

The growth rate has been helped by a 9.5% increase in music consumption, according to the report.

There has also been growth is streaming, with streaming revenue growing by 41% and income from subscription streaming rising by 45%.

Vinyl income grew by 24%, making the format now a fifth of the size of the CD market.

Geoff Taylor, Chief Executive BPI & BRIT Awards, says of the news: “The changes labels have made to their business models and their investment in new talent have borne fruit with rapid revenue growth in 2017. We are likely to see a continuing rise in 2018, with increasing awareness among consumers about the benefits of music streaming, and new developments that are likely to encourage the uptake of subscriptions, such as the launch of YouTube’s premium music service and the growing popularity of smart speakers in the home.”

“While these are reasons for optimism, music still has a long way to go to recover fully and achieve long-term sustainable growth. In particular, Government action is needed to remedy the continuing “Value Gap”, so that all digital platforms pay fairly for their use of music, and with the transition period following Brexit now agreed, it is vital that British musicians can tour freely in the EU once we leave. In addition we urge Government to seize the opportunity of its Digital Charter to forge an online environment that is safe for consumers, where illegal sites cannot flourish, and to look at new incentives for investment so that the UK is the best place in the world to invest in creating music. These measures are essential given the increasing competition the UK faces in a more global streaming market.”