Photo by Dominik Türk
More than half of the UK’s grassroots music venues failed to make a profit in 2025, according to the latest annual report from Music Venue Trust (MVT), which warns that the sector remains financially fragile despite signs of slowing decline. The report shows that 53% of grassroots music venues (GMVs) operated at a loss last year, with recent UK Government changes to business and national insurance rates contributing to the loss of 6,000 jobs, as venues struggled under what MVT describes as unsustainable tax pressures.
While the figures remain concerning, the data also points to a degree of stabilisation. The rate of annual decline in grassroots venues was the lowest recorded since 2018. In total, 801 venues were trading in 2025, down from 810 in 2024. Music Venue Trust attributes this smaller drop in part to extensive support delivered through its Venue Support Team and Emergency Response Service.
However, financial strain across the sector continues. Although grassroots venues generated more than £76 million in revenue last year, the average profit margin now stands at just 2.5%. Against this backdrop, support initiatives have become increasingly important. In May, The LIVE Trust reported that its ticket levy scheme, backed by artists including Diana Ross and Pulp, had raised more than £500,000 for grassroots music. The scheme encourages artists performing at UK arena and stadium shows to donate £1 from each ticket sold and was supported by 93% of fans in a survey by Music Fans’ Voice.
“We have reached the limits of what venues can absorb on margins of 2.5%,” said Mark Davyd, CEO and founder of Music Venue Trust. “This sector has done everything it can to keep music live in our communities. What’s needed now is permanent protection, structural reform, and leadership that recognises grassroots venues as essential national infrastructure.” Davyd added that while government action is crucial, the wider music industry also has a role to play, warning that if voluntary progress on the levy fails to deliver by June 2026, legislative action may be required.
