As the UK’s music industry continues to grapple with the aftermath of the pandemic, a cautiously optimistic outlook emerges from the latest annual report by the Music Venue Trust (MVT). While audience numbers are returning, and the rate of venue closures has slowed, the financial foundations of the sector remain perilously thin, with over half of grassroots music venues making no profit at all in 2025.
According to MVT founder and CEO Mark Davyd, there are reasons for cautious optimism. “I wouldn’t say we’ve turned the corner,” he tells The Update Desk, “but I think I would say that we are at least peering round a corner.” The government’s language has become more positive, with officials recognising the vital role that small venues play in developing artists and fostering community engagement.
However, turning this recognition into tangible policy remains a challenge. Davyd points to the issue of business rates as a case in point, with the sector’s calls for a specific category for music venues going unheeded. The loss of almost 6,000 jobs in the sector in a single year, a staggering 19% contraction, is particularly alarming, as these were predominantly young and freelance workers – the future technicians, bookers, and promoters of the industry.
The report also paints a concerning picture of the national touring circuit retreating into a handful of major cities, leaving 175 towns and cities without regular visits from professional touring artists. This cultural “have and have-not” divide is something the MVT is trying to address through emergency grants, advice, and new touring schemes.
Despite the challenges, Davyd remains optimistic about the sector’s prospects in 2026, believing that the opportunity exists not just to stabilise the network of grassroots venues, but to actively restore it. “I just get such a buzz out being in a small room with 200 or 300 people,” he says, reflecting on his own formative experiences in music. “I love that moment when the band plays the song you’re all waiting for and you all start singing it together.”
As the UK’s music industry navigates these uncertain times, the fate of its grassroots venues remains crucial to the future of the sector and the vibrant cultural landscape that has long been one of the country’s greatest exports.
