More than half (53%) of grassroots music venues (GMVs) did not make any profit in 2025 according to figures from the Music Venue Trust (MVT).
The industry body published its annual report for 2025 on Wednesday which highlighted that, despite contributing more than half a billion pounds to the UK economy, 30 grassroots music venues have permanently closed over the past year with 6,000 (19.8%) roles cut – the sharpest drop since the trust began collecting annual data.
It also reported that the national touring circuit has shrunk with 175 UK towns and cities no longer receiving regular touring shows by professional artists.
MVT has cited the UK Government’s changes to national insurance and business rates as a factor that has caused many venues to struggle over the past year and proposed plans to help inject more money and support into the sector.
Mark Davyd, MVT chief executive and founder, said: “The future of British music depends on stabilising and rebuilding the grassroots touring network.
“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.”
It also hopes money generated by the grassroots levy, a voluntary scheme which sees large concerts at stadiums and arenas reinvest a portion of the gross revenue back to GMVs, will help address the root cause impacting the touring circuit by covering venue costs and guaranteeing artist fees across UK towns.
It warned that if it does not materialise by June 2026 then the Government must intervene.
Mr 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 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.
“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.
“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.”
To mitigate further impact on grassroots music venues, MVT said it will expand its frontline services to help to prevent avoidable closures through programmes such as its venue support team and emergency hardship relief fund, which offer advice and urgent cash to GMVs.
It will also invest £2 million into existing programmes such as Venue MOT, Off the Grid and Raise the Standard to help reduce venue operating costs.
