Over Half of UK Grassroots Music Venues Made No Profit in 2025, Charity Reports
The Music Venue Trust (MVT) has released its annual report for 2025, revealing a stark picture of financial distress in the UK's grassroots music sector. According to the findings, more than half (53%) of grassroots music venues (GMVs) did not generate any profit last year, highlighting a critical challenge for the industry.
Economic Impact and Closures
Despite contributing over half a million pounds to the UK economy, the sector has faced significant setbacks. In 2025, 30 grassroots music venues permanently closed their doors, marking a troubling trend. Additionally, the industry saw a sharp reduction in employment, with 6,000 roles cut, representing a 19.8% decline. This is the most severe drop since the trust began collecting annual data, underscoring the urgency of the situation.
Shrinking Touring Circuit
The report also highlighted a contraction in the national touring circuit. Currently, 175 UK towns and cities no longer receive regular touring shows by professional artists. This reduction not only impacts local communities but also limits opportunities for emerging musicians to build their careers on the road.
Factors Contributing to the Struggle
MVT has identified several factors contributing to the financial strain on venues. Key among these are changes to national insurance and business rates implemented by the UK Government. These policy shifts have placed additional burdens on small businesses, making it increasingly difficult for GMVs to remain viable.
Proposed Solutions and the Grassroots Levy
To address these challenges, MVT has proposed plans to inject more money and support into the sector. A central component of this strategy is the grassroots levy, a voluntary scheme where large concerts at stadiums and arenas reinvest a portion of their gross revenue back into GMVs. This initiative aims to cover venue costs and guarantee artist fees, thereby addressing the root causes impacting the touring circuit.
Mark Davyd, MVT chief executive and founder, emphasised the importance of this levy: "The future of British music depends on stabilising and rebuilding the grassroots touring network. 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."
Urgent Calls for Action
MVT has issued a warning that if the grassroots levy does not materialise by June 2026, the Government must intervene. Davyd stated: "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 (the charity which collects the funds raised by the levy), to deliver investment and reform that restores the infrastructure that music careers are built on."
He added: "The arrival of grassroots levy funding in 2026 will provide the opportunity to take a radical new approach and that is exactly what we intend to do. We have reached the limits of what venues can absorb on margins of 2.5%. 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."
Davyd further noted that while a coherent strategy from the Government is necessary, the music industry itself must act: "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."
Mitigation Efforts and Future Investments
In response to the ongoing crisis, MVT plans to expand its frontline services to help prevent avoidable closures. This includes programmes such as the venue support team and the emergency hardship relief fund, which offer advice and urgent financial assistance to struggling GMVs.
Additionally, the trust will invest £2 million into existing initiatives like Venue MOT, Off the Grid, and Raise the Standard. These programmes are designed to reduce operating costs for venues, providing a lifeline in an increasingly challenging financial climate.
The findings from the Music Venue Trust's report paint a concerning picture for the future of grassroots music in the UK. With over half of venues failing to turn a profit and a significant number closing permanently, the call for structural reform and industry-wide support has never been more urgent.
