Half of UK Grassroots Music Venues Operate Without Profit
Grassroots music venues play a vital role in the UK’s cultural landscape, nurturing emerging talent. Notable artists like Ed Sheeran and Olivia Dean honed their skills in these local spaces. However, a recent report by Music Venue Trust (MVT) highlights significant challenges facing these important establishments.
Financial Struggles of UK Grassroots Music Venues
According to MVT’s annual report, over half of grassroots music venues (53%) did not turn a profit last year. This issue has led to the closure of 30 venues in 2025, including well-known spots like Liverpool’s Zanzibar and Leicester’s The Shed, which were essential in the early careers of bands like Kasabian.
These closures have resulted in the loss of approximately 6,000 jobs, constituting nearly 20% of the music venue workforce. While the live music scene faced these setbacks, some encouraging news emerged: grassroots concert attendance surged by 13%, with 21 million attendees enjoying shows in 2025.
Changing Landscape of Live Music Attendance
Despite these closures, the rate of venue decline slowed to just 1.2%, the lowest since 2018. Average ticket prices saw a minimal increase, rising from £11.48 to £11.56. Mark Davyd, CEO of MVT, expressed cautious optimism, stating, “There is a feeling of the cavalry being in sight now.”
Underlying Challenges Facing Venues
In total, there were 801 grassroots music venues in 2025, down from 810. Owners cited rising financial pressures as a primary reason for shutting down. National Insurance increases have added an estimated £15 million to the sector’s wage expenses. Furthermore, the average profit margin for a grassroots venue stands at a mere 2.5%, which MVT labeled as “critically low.”
Davyd pointed out that many venues report profits without factoring in unpaid salaries for owners and staff. The cost of living crisis has further complicated operations. Kathryn McShane, director of the Black Box in Belfast, noted the difficulty in selling tickets as customers face increasing living expenses.
Innovative Responses to Financial Strain
In response to financial constraints, some venues, like the Black Box, have diversified their offerings. By hosting corporate events and community gatherings, they aim to maintain steady revenue streams. McShane suggested that larger concert venues should support their smaller counterparts, similar to practices in the sports industry where bigger teams give back to their communities.
Proposed Solutions for Sustainability
The MVT has proposed a £1 levy on tickets sold for larger arena shows. This initiative could potentially generate up to £25 million annually for struggling grassroots venues. Major artists, including Pulp and Ed Sheeran, have already endorsed this scheme, while venues like the Royal Albert Hall have agreed to participate.
Davyd emphasized the need for the government to support the grassroots scene by removing VAT on concert tickets. He argued that while many local venues may not be profitable now, investing in them could yield significant cultural and economic benefits in the future.
As grassroots music venues continue to face challenges, their ability to evolve and thrive remains essential for the UK’s music landscape.
