Music Venue Trust’s annual report warns of a sector “one financial shock away from crisis”, as the grassroots music industry is hit with cost increases and shrinking employment.
More than half of Britain’s grassroots music venues recorded no profit at all over the past year. In all, 53 per cent didn’t get into the black, with the average profit margin for those that did coming in at just 2.5 per cent. Almost all are “one financial shock away from crisis”.
The warning comes from Music Venue Trust’s annual report for 2025, which highlights increasing costs, changes to business rates and National Insurance as insurmountable to many venues.
It also found that, despite the grassroots music industry contributing more than half a billion pounds to the economy annually, in 2025 30 venues had permanently closed, and there were 6,000 fewer jobs in the sector, a drop of almost a fifth. In the past year, the organisation assisted in 205 emergency cases – more than one every two days.
As well as the economic hit, the effect this has on touring is that there are now 175 towns in the UK that are no longer stop-offs for artists. The knock-on is a reduction in the number of opportunities for emerging artists.
Responding to the findings of its report, MVT announced that it is expanding its Venue Support Team and Emergency Hardship Funds. It has also committed £2 million to help struggling venues and the wider industry via a newly launched collection of programmes. That will help with “infrastructure resilience, operational improvement, energy efficiency, and enhanced artist and audience experience”. Programmes include Venue MOT (advice on increasing operational efficiency), Off The Grid (lowering electricity bills through solar power), Stay The Night (helping upgrade venue accommodation)and Raise The Standard (grants for professional sound and lighting gear).
Additionally, they have launched Liveline, in association with Save Our Scene and Association Of Independent Promoters. The project will reduce the financial burden on promoters by covering costs and reducing financial exposure, in order to nurture and strengthen the UK’s touring network.
Speaking at the launch of the report in London, MVT boss Mark Davyd said, “The future of British music depends on stabilising and rebuilding the grassroots touring network. 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.
“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.”
He also called upon the government to support the sector through tax reform to ease the burden on venues, adding that if the industry itself cannot be the change it wants to see by summer, then action needs to come from the top.
“We have reached the limits of what venues can absorb on margins of 2.5 per cent. 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 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 full report can be read here.
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