UK Grassroots Music Venues Face Profit Challenges Despite Rising Attendance in 2025

Small grassroots music venues in the UK, vital for nurturing emerging talent such as Ed Sheeran, The Last Dinner Party, and Olivia Dean, continue to face severe financial difficulties. According to the Music Venue Trust’s (MVT) annual report for 2025, more than half (53%) of these venues failed to make any profit, with the average profit margin sitting at a critically low 2.5% — often achieved only by owners not paying themselves. Thirty venues permanently closed during the year, including well-known spots like Zanzibar in Liverpool and The Shed in Leicester, resulting in the loss of around 6,000 jobs, equivalent to nearly 20% of the sector’s workforce. Financial pressures, including increased National Insurance contributions adding £15 million to wage costs, the ongoing cost-of-living crisis, and higher expenses for artists (particularly travel to locations like Northern Ireland), were cited as primary reasons for the struggles. Attendance at grassroots gigs rose by 13% to 21 million fans, while ticket prices remained almost stable, increasing by just eight pence to £11.56. The rate of venue closures slowed to 1.2%, the lowest since 2018, leaving 801 venues operational, slightly down from 810. MVT CEO Mark Davyd expressed cautious optimism, describing progress post-Covid and a sense that support may be approaching. Initiatives include a voluntary £1 levy on tickets for large arena and stadium shows (capacity over 5,000), backed by artists like Ed Sheeran, Coldplay, and Pulp, as well as venues like the O2 Arena and Royal Albert Hall, potentially raising up to £25 million annually for grassroots support. The government’s Department for Culture, Media and Sport fully supports the scheme, though funds have not yet been distributed. Davyd also urged scrapping VAT on live music tickets, viewing grassroots venues as essential ‘research and development’ for the broader music industry that generates significant future economic value.