In a sobering report from the Music Venue Trust (MVT), the UK’s thriving grassroots music scene is under increasing financial pressure, with over half of small venues failing to turn a profit last year. Despite a 13% rise in gig attendance, the sector continues to grapple with a perfect storm of challenges.
The report reveals that 30 live music venues shuttered in 2025, including iconic clubs like Liverpool’s Zanzibar and Leicester’s The Shed, which had nurtured the careers of acts like Kasabian. Across the industry, a staggering 6,000 jobs were lost, representing nearly 20% of the workforce.
“The cost of living crisis had a massive impact,” says Kathryn McShane, director of Belfast’s Black Box venue, which hosts over 700 events annually. “It becomes harder to sell a £25 ticket when there are other costs to consider.” The soaring expenses of arena shows are also eating into music fans’ “cultural spend for the year.”
Mark Davyd, CEO of the MVT, acknowledges the sector’s struggles, but strikes an optimistic tone. “There is a feeling of the cavalry being in sight now,” he says, pointing to a slowdown in the rate of venue closures. However, he cautions that “even that profit figure is hiding a sad reality,” as many venues are not paying themselves.
To address the crisis, the MVT has proposed a £1 levy on tickets for all arena and stadium shows with over 5,000 capacity. This could raise up to £25 million annually to support the grassroots scene. Major artists, including Pulp, Coldplay, and Ed Sheeran, have already signed on to the scheme, while the government has expressed its support.
Davyd argues that live music at this level should be viewed as a “research and development activity” that needs government recognition and assistance, such as scrapping VAT on concert tickets. “Look, live music at this level is almost frankly doomed not to make any money,” he says, “but what’s interesting is the amount of money it will eventually make for the country when those artists move on in their career.”
As the grassroots music sector continues to navigate these challenges, the future of the UK’s vibrant music scene hangs in the balance. With the support of both the industry and the government, the MVT remains hopeful that the cavalry is indeed on the way to safeguard these vital cultural hubs.
