More than half (53%) of grassroots music venues (GMVs) in the UK failed to turn a profit in 2025, according to the Music Venue Trust (MVT). The charity's annual report, published on Wednesday, reveals that despite contributing over half a billion pounds to the economy, 30 venues permanently closed last year and 6,000 jobs (19.8% of the sector) were lost – the sharpest decline since data collection began.
The report also highlights that the national touring circuit has shrunk, with 175 UK towns and cities no longer hosting regular touring shows by professional artists. MVT attributes the struggles to government changes in national insurance and business rates, which have placed additional financial pressure on venues.
Mark Davyd, MVT's chief executive and founder, stated: “The future of British music depends on stabilising and rebuilding the grassroots touring network.” He emphasised that the sector has reached the limits of what venues can absorb on margins of 2.5%, calling for permanent protection and structural reform that recognises grassroots venues as essential national infrastructure.
MVT is pinning hopes on the grassroots levy, a voluntary scheme where large concerts reinvest a portion of revenue into GMVs. The charity warns that if the levy does not materialise by June 2026, the government must intervene. Davyd said: “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.”
To mitigate further closures, MVT plans to expand frontline services, including its venue support team and emergency hardship relief fund. It will also invest £2 million into programmes such as Venue MOT, Off the Grid and Raise the Standard to help reduce operating costs for grassroots venues.
