The Music Venue Trust (MVT) has released its annual report indicating a potential recovery in the UK grassroots music venue sector. The report highlights that while audiences are returning and more gigs are being staged, the overall financial health of many venues remains precarious. In the past year, 30 venues permanently closed, and 48 ceased operations as grassroots music venues, but 69 new or revived spaces joined the network, suggesting a slowing decline.
Despite these signs of recovery, the report reveals that over half of grassroots music venues reported no profit in 2025, with an average profit margin of just 2.5%. Many venues continue to rely on bar sales and other income streams to subsidize live music events.
Employment within the sector has seen a significant contraction, with nearly 6,000 jobs lost in a single year, marking a 19% decrease. This decline is attributed to changes in national insurance contributions that disproportionately affected younger, freelance workers in the industry.
The report also notes that the national touring circuit is increasingly concentrated in major cities, leaving 175 towns and cities without regular visits from professional touring artists. The MVT is actively working to address these disparities through emergency grants and new touring initiatives.
While the government has shown increased support for grassroots venues, challenges remain in translating this recognition into effective policy changes. The MVT continues to advocate for specific business rate categories for music venues to prevent further closures.