Grassroots Music Sector Sheds Thousands of Jobs Following Tax Changes
A stark new report has revealed that more than 6,000 positions have been eliminated from Britain's grassroots music venue workforce in the aftermath of significant tax policy changes introduced last year. The findings, published by the Music Venue Trust (MVT), highlight the severe impact on employment within a sector crucial for nurturing emerging musical talent.
Tax Reforms Force Drastic Staff Cuts
The workforce across grassroots music venues plummeted from 30,865 people in 2024 to just 24,742 last year, representing a loss of approximately one-fifth of the entire sector's employees. This dramatic reduction followed Chancellor Rachel Reeves' Autumn Budget measures, which increased employers' National Insurance contributions to 15 per cent and reduced business rates relief from 75 per cent to 40 per cent.
Venue operators told the MVT that cutting staff was "unavoidable" to remain financially viable. The cuts predominantly affected part-time, freelance, and casual roles in essential areas such as lighting, sound engineering, and customer service. On average, each venue now employs the equivalent of 15.5 full-time staff, having slashed freelance and casual roles from 20.7 to just 7.6 positions.
Precarious Financial Position of Venues
These establishments, which range from dedicated performance spaces for hundreds to rooms above pubs hosting just a few dozen people, are operating on extremely tight margins. More than half failed to report a profit last year, despite the sector contributing over £500 million to the UK economy. The average profit margin stands at a precarious 2.5 per cent, with many venues relying on volunteer support to continue operations.
The MVT estimates that music venues faced an additional £7 million tax burden as a direct result of the policy changes. Mark Davyd, CEO of the Music Venue Trust, stated: "We have reached the limits of what venues can absorb on margins of 2.5 per cent. 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."
Broader Consequences for Music Culture
The financial strain has had tangible consequences for the UK's music ecosystem. Seventy-eight venues have either closed completely or ceased programming live music, with forty citing unaffordable operating costs as the primary reason. Furthermore, the report notes that approximately 175 towns and cities, home to around 35 million people, rarely if ever host major touring artists, creating significant cultural deserts across the nation.
Almost six in ten British venues operate without major promoter connections, isolating them from the professional touring circuit. This is particularly concerning given that most of the country's celebrated musicians began their careers in these very spaces, playing to modest crowds before being discovered.
Industry and Government Responses
In response to the crisis, the music industry has initiated a grassroots levy, where major artists including Coldplay, Pulp, Wolf Alice, Lorde, and composer Hans Zimmer donate a portion of their UK ticket sales to a fund supporting local music scenes. Venues such as the O2 and Royal Albert Hall have also committed to the newly established LIVE Trust, which will coordinate fund distribution.
The MVT is investing £2 million in schemes to assist struggling venues with various challenges, including energy costs. Additionally, it will receive grants from LIVE for its Liveline Fund, aimed at financing tours in lesser-visited UK locations.
The government currently supports the levy on a voluntary basis, but the Trust has warned that if voluntary action does not prove effective by June 2026, legislation should make it mandatory. The organisation is also calling for tax reforms specifically for music venues, including reduced VAT on gig tickets at small venues, business rates relief, and discretionary alcohol duty cuts.
Creative Industries Minister Ian Murray responded: "Grassroots venues are vital to the UK's music culture, offering emerging artists a platform, supporting local economies and creative jobs. That is why we are committed to working with the sector to support the sustainability of the entire music ecosystem." The government points to its £30 million music growth fund and record innovation funding as part of its support strategy.
Mr Davyd concluded with a sobering assessment: "The future of British music depends on stabilising and rebuilding the grassroots touring network. The music industry itself is in the last chance saloon with regards to the levy." The Treasury was contacted for comment regarding the report's findings.
