More than half (53%) of grassroots music venues in the United Kingdom were unable to turn a profit in 2025, according to the annual report of the Music Venue Trust.
Released Tuesday (Jan. 20) at the industry body’s annual conference, which took place at London’s V&A Museum, the report details how the grassroots live sector contributes over £500 million ($671 million) annually to the U.K. economy but its structure remains precarious.
The report details how, throughout the year, the U.K. government changes to national insurance and business rates resulted in a loss of 6,000 jobs – a 19% contraction in the overall workforce. The Music Venue Trust (MVT) described the tax burdens as “unsustainable”, with freelance and casual roles hit hardest, dropping from an average of 20.7 to 7.6 per venue.
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In its headline findings, the report states that the majority of grassroots music venues (GMVs) in the U.K. are now “one financial shock away from crisis”, while the national touring circuit continues to contract. The average profit for a GMV was just 2.5%, a figure the charity described as “critically low.”
Over the past year alone, 30 GMVs permanently closed, and 175 U.K. towns and cities, home to an estimated 25 million people, no longer receive regular touring shows by professional artists (classed as the ‘significant touring circuit’ by the MVT). Destinations with populations exceeding 100,000 not receiving ‘significant tours’ include: Leicester, Hull, Portsmouth, Stoke, and entire regions across Wales, Scotland and the South West.
“We have reached the limits of what venues can absorb on margins of 2.5%,” said MVT chief executive and founder Mark Davyd in a statement. “This sector has done all it can to keep music live in our communities, it now needs permanent protection, structural reform, and leadership that recognises grassroots venues as essential national infrastructure.
“That obviously needs to come in the form of a coherent strategy from the government, but they are not the sole solution. The music industry itself is in the last chance saloon with regards to the levy; if voluntary industry action does not deliver by June 2026, the government must legislate.”
The MVT plays a critical role in maintaining the pipeline of live music by protecting the grassroots venues where artists build audiences and gain touring experience. As operating costs rise, through targeted campaigning and policy work, the Trust works to help prevent closures and secure the long-term economic and cultural value of GMVs.
Positive highlights from the report include the number of people attending gigs at a grassroots level, which rose by 13% in 2025 with 21 million fans checking out shows. Average ticket prices at GMVs, meanwhile, saw a minimal rise, increasing by just eight pence to £11.56 ($15.54).
A voluntary £1 levy on tickets for arena and stadium shows with more than 5,000 capacity has also been adopted by major artists including Coldplay, Ed Sheeran, Gorillaz, Kneecap, Lorde, Mumford & Sons, Pulp, Radiohead, Sam Fender and Wolf Alice. The move resulted in 8.8% of the tickets on sale at this level in 2025, helping to generate funding for GMVs.
In 2026, the MVT is set to develop Liveline, a national touring programme in partnership with live charity Save Our Scene and the Association Of Independent Promoters, designed to address the root causes of the touring crisis.
The MVT will also expand its venue support team, which offers advice and urgent cash to GMVs, while investing £2 million into a number of targeted programmes. These projects include Venue MOT, Off The Grid, Stay The Night and Raise The Standard, which focus on infrastructure resilience and operational improvement across the grassroots ecosystem.
Davyd said: “For 10 years Music Venue Trust has explored the best ideas from around the world, worked with our sector to understand what would make the biggest difference to them, and brought forward innovative, groundbreaking ideas that we can now deliver practically.
“This is no longer just about rescue, it is about working with our partners and colleagues, including the crucial role to be played by the LIVE Trust, to deliver investment and reform that restores the infrastructure that music careers are built on.”
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