More than half of Britain's grassroots music venues made no profit in 2025, according to a damning annual report published Wednesday by the Music Venue Trust. The industry body revealed that 30 venues permanently closed and 6,000 jobs were cut over the past year – the sharpest workforce drop since MVT began collecting data.
The crisis has dramatically shrunk the national touring circuit. 175 UK towns and cities no longer receive regular shows by professional artists, threatening the infrastructure that launches music careers.
MVT chief executive Mark Davyd said: «The future of British music depends on stabilising and rebuilding the grassroots touring network.»
Proposed grassroots levy
MVT is proposing a voluntary industry levy where large concerts at stadiums and arenas reinvest a portion of gross revenue into struggling grassroots venues. The scheme would cover venue costs and guarantee artist fees, with funds collected by the Live Trust charity.
But Davyd issued a stark warning: «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.»
Immediate support measures
MVT will invest £2 million into existing programs including Venue MOT, Off the Grid, and Raise the Standard to reduce operating costs. The organization is expanding frontline services with a venue support team and emergency hardship relief fund to prevent avoidable closures.
Davyd emphasized the urgency: «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.»
Government pressure factor
MVT attributes venue struggles partly to UK Government changes in national insurance and business rates. The report shows 53% of grassroots music venues operated without profit in 2025, highlighting the sector's fragility.
Davyd said: «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.»
The MVT founder added: «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.»
He concluded: «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.»
Note: This article was created with Artificial Intelligence (AI).
