Half of UK's grassroots music venues make no profit, according to a recent report by the Music Venue Trust (MVT). This highlights a critical issue in the UK's music industry, where small venues, which are crucial for nurturing emerging talent, are struggling to stay afloat. Despite being the launchpad for acts like Ed Sheeran, The Last Dinner Party, and Olivia Dean, over half of these venues (53%) failed to turn a profit last year. The situation is dire, with 30 live music venues closing in 2025, including notable clubs like Zanzibar in Liverpool and The Shed in Leicester, which have played pivotal roles in promoting local artists. This closure has led to the loss of 6,000 jobs, nearly 20% of the sector's workforce.
However, there's a glimmer of hope. The number of people attending grassroots gigs rose by 13% in 2025, with 21 million fans attending shows. Ticket prices remained stable, with an average increase of just 8 pence. The rate of venue decline has slowed to 1.2%, the lowest since 2018, indicating a potential turning point. MVT CEO Mark Davyd expressed optimism, noting progress compared to the years since the pandemic.
Financial pressures are the primary reason for venue closures, with rising National Insurance payments adding significantly to the sector's wage bill. The average profit for a grassroots venue is a mere 2.5%, a figure MVT considers critically low. Davyd revealed a concerning reality: many venues report profit when they haven't paid themselves, highlighting the financial strain.
The Black Box in Belfast, a 240-capacity venue, faces similar challenges. Director Kathryn McShane attributes the impact of the cost of living crisis, making it harder to sell tickets. The soaring costs of arena shows are also affecting music fans' cultural spending. McShane suggests that larger concert venues should support local affiliates, drawing parallels to the sports sector's community support.
To address these issues, MVT proposes a £1 levy on tickets for arena and stadium shows with a capacity over 5,000, aiming to raise up to £25 million annually for grassroots venues. Major artists like Pulp, Coldplay, and Sam Fender have supported this initiative, with Sam Fender donating his Mercury Prize winnings. Venues like the Royal Albert Hall and the O2 Arena have also signed on, and the government's Department for Culture, Media, and Sport (DCMS) fully supports the scheme.
Despite the lack of distributed funds, MVT views the scheme as a significant opportunity to reverse a decade of cultural retreat from local, live music in 2026. Davyd calls on the government to assist the grassroots scene by scrapping VAT on concert tickets, emphasizing the long-term benefits of supporting live music.
