UK Grassroots Music Scene in Crisis: Over 50% of Small Venues Report Losses in 2025
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A staggering 53% of the United Kingdom’s grassroots music venues failed to turn a profit in 2025, according to a sobering new report from the Music Venue Trust (MVT). Unveiled Tuesday at the organization’s annual conference at London’s V&A Museum, the data highlights a precarious paradox: while these independent stages inject over £500 million ($671 million) into the national economy annually, their operational foundations are crumbling.
The report underscores how recent shifts in national insurance and business rates have decimated the sector’s workforce, leading to the loss of 6,000 jobs—a 19% contraction. The MVT characterized current tax burdens as “unsustainable,” noting that casual and freelance roles have been hit hardest, with staffing levels plummeting from an average of 20 per venue to fewer than eight.
The headline findings suggest that the majority of Grassroots Music Venues (GMVs) are now “a single financial blow away from insolvency.” With the national touring circuit continuing to shrink, the average profit margin for these cultural hubs has withered to a critically low 2.5%.
The impact on local communities is severe. In the past year alone, 30 venues closed permanently. As a result, 175 UK towns and cities—home to roughly 25 million people—no longer host a “significant touring circuit.” Major urban centers such as Leicester, Hull, Portsmouth, and Stoke, along with entire regions in Wales and Scotland, are being bypassed by professional touring artists due to a lack of viable infrastructure.
“We have reached the absolute limit of what these venues can absorb on 2.5% margins,” stated Mark Davyd, CEO and founder of the MVT. “This sector has done everything possible to keep live music alive. It now requires permanent protection, structural overhaul, and leadership that recognizes grassroots venues as essential national infrastructure.”
Davyd also issued a blunt ultimatum to the wider music industry regarding the proposed ticket levy: “The industry is in the ‘last chance saloon.’ If voluntary action from major stakeholders does not deliver by June 2026, the government must intervene with legislation.”
Despite the financial strain, audience demand remains robust. Attendance at grassroots shows surged by 13% in 2025, with 21 million fans supporting local talent. Remarkably, ticket prices have remained accessible, rising by a mere eight pence to an average of £11.56 ($15.54).
The report also highlighted the success of the voluntary £1 levy on arena and stadium tickets. High-profile artists including Coldplay, Sam Fender, Ed Sheeran, and Radiohead have championed the initiative, which applied to nearly 9% of all large-scale tickets sold in 2025, providing a vital funding lifeline for smaller stages.
Looking ahead to 2026, the MVT is preparing to launch Liveline, a national touring program developed alongside Save Our Scene and the Association Of Independent Promoters. The initiative aims to revitalize the touring ecosystem at its roots. Additionally, the Trust will invest £2 million into targeted resilience programs, including Venue MOT and Raise The Standard, to bolster operational stability across the country.
“For a decade, we have studied global best practices to understand what would truly move the needle for our sector,” Davyd added. “This is no longer just a rescue mission; it is about delivering the investment and reform necessary to restore the very foundation upon which music careers are built.”
