UK Grassroots Music Venues Show Signs of Stabilisation After Pandemic
The grassroots music venue sector in the United Kingdom has demonstrated a notable stabilisation, with the lowest rate of annual decline recorded since 2018. According to the latest annual report from the Music Venue Trust, the net number of venues shrank by just nine in 2025, marking a significant improvement from previous years of more severe losses.
Closures and Returns in the Sector
Between July 2024 and 2025, thirty venues closed permanently, while forty-eight ceased operating as grassroots music venues. Reasons cited for these changes include financial viability issues, changes in ownership, and eviction or redevelopment pressures. However, in a positive turn, sixty-nine spaces that had previously stopped functioning as grassroots venues returned to the sector during this period.
This dynamic suggests that the industry is beginning to recover and stabilise five years after the pandemic, though challenges remain pervasive.
Financial and Employment Challenges Persist
Despite generating £76.6 million in revenue in 2025, more than half of grassroots music venues, specifically 53.8%, reported making no profit. The average profit margin across the sector was a mere 2.5%, highlighting ongoing financial strains. Additionally, 38% of venues are now operating as not-for-profit entities, reflecting a shift in business models to sustain operations.
Employment in the sector has also suffered a significant decline, dropping by almost 22% from 30,885 to 24,242 people. Venues attribute this reduction primarily to increases in national insurance costs for employers, which have exacerbated financial pressures and led to job losses.
Calls for Government Action and Industry Support
The Music Venue Trust has issued urgent calls for legislative support to bolster the sector. Key recommendations include:
- Legislating the introduction of a grassroots levy, where UK arena and stadium shows add £1 to all tickets to create a fund supporting grassroots venues. Currently, this scheme is voluntary, with some venues and artists like Sam Fender and Katy Perry participating, but major players like Live Nation have not fully committed.
- Enshrining the agent of change policy in law, ensuring that new developments near existing live music venues handle their own noise protection measures.
- Reducing barriers to touring post-Brexit and ensuring that funds such as the Music Growth Scheme effectively support grassroots talent.
The Trust also highlighted that its emergency response service dealt with a record number of appeals from venues facing financial insecurity, neighbouring planning applications, and pressure from music licensing bodies.
Future Initiatives and Regional Disparities
Under its own initiatives, the Music Venue Trust plans to expand its frontline venue support team and emergency hardship fund, investing £2 million into programmes aimed at reducing operating costs, improving efficiency, and enhancing experiences for artists and audiences. The Liveline touring programme is proposed as a fully funded solution to address the root causes of the touring crisis, covering venue costs, reducing promoter risk, and guaranteeing artist fees.
However, regional disparities remain a concern. The Trust noted that 175 UK towns and cities with at least one grassroots venue did not host any significant touring artists during the period. Despite this, industry reports indicate an expansion in the UK touring map, with events now occurring in 40% more towns compared to 2015, suggesting growing nationwide demand for live music.
Overall, while the grassroots music venue sector shows signs of stabilisation, ongoing financial vulnerabilities and employment challenges underscore the need for sustained support and policy interventions to ensure its long-term viability.
