A sobering new report from the Music Venue Trust (MVT) has revealed that the UK’s grassroots music sector is currently "financially fragile," following a year of staggering job losses and venue closures. The Annual Report 2025, launched today at the V&A in London, paints a picture of a sector contributing £500m to the economy while teetering on the edge of collapse.
A Workforce in Contraction
The most alarming finding in the report is the sharp downturn in employment. Recent government changes to National Insurance and business rates have placed an unsustainable burden on small businesses, resulting in the loss of 6,000 jobs—a 19% contraction of the total grassroots workforce.
With average profit margins sitting at a razor-thin 2.5%, and 53% of venues reporting no profit at all, the sector is "one financial shock away from crisis."
The Shrinking Touring Circuit
The impact is being felt most heavily in local communities. Over the last year, 30 grassroots music venues (GMVs) closed permanently. Perhaps more shockingly, 175 UK towns and cities—representing 25 million people—have now been completely lost to the professional touring circuit.
This "talent pipeline" crisis means emerging artists no longer have the infrastructure needed to develop their careers. Glenn Tilbrook, frontman of Squeeze, noted at the launch: "I recently saw a poster of a tour I played thirty years ago. Three quarters of those venues no longer exist. We simply must stop the rot."
MVT’s £2m Intervention Plan
In response, MVT CEO Mark Davyd has announced an immediate £2 million investment into targeted sustainability programmes, including:
Venue MOT & Off The Grid: Improving infrastructure and energy efficiency.
Liveline: A national touring programme to subsidize venue costs and guarantee artist fees in "black hole" towns.
The "Last Chance Saloon" for the Industry
The MVT is calling for urgent government action, including fundamental tax reform and the enshrining of "Agent of Change" into law to protect venues from developers.
Crucially, Davyd warned the wider music industry that they are in the "last chance saloon" regarding a voluntary grassroots levy on arena and stadium tickets. If a voluntary system is not proven to work by June 2026, the Trust is demanding that the government legislate a statutory levy to protect the future of British music.
