Grassroots Music Venues Navigate a Fragile Recovery in the UK
The UK's grassroots music venues are experiencing a cautious resurgence, with audiences returning and closure rates slowing, yet underlying financial vulnerabilities and significant job losses continue to pose serious threats to the sector's long-term health. According to the Music Venue Trust's latest annual report, while 30 venues permanently closed and 48 ceased operating as grassroots spaces in 2025, 69 new or revived venues joined the network, easing the overall decline. This marks a slight improvement from the bleak post-pandemic years of 2023 and 2024, but the industry remains on shaky ground.
Financial Foundations Remain Dangerously Thin
Beneath the surface of this tentative recovery, the economic reality for many venues is stark. More than half of grassroots music venues reported no profit at all in 2025, with the average profit margin across the sector languishing at just 2.5%. Live music events themselves are often structurally loss-making, forcing venues to subsidise gigs through ancillary income streams such as bar sales and food offerings. This precarious financial model highlights the ongoing challenges faced by operators striving to keep their doors open.
Government Recognition Yet to Translate into Concrete Policy
Mark Davyd, founder and CEO chair of the Music Venue Trust, notes a shift in governmental attitude, with officials at the Department for Culture, Media and Sport expressing more supportive language than in previous years. He points to the creative industries sector plan as a positive step, acknowledging the role small venues play in developing artists and fostering local community engagement. However, Davyd emphasises that this recognition has not yet materialised into effective policies, citing the ongoing issue of business rates as a prime example. "We have been saying for 10 years you need a specific category for music venues," he explains, highlighting how venues are often assessed as commercial entities, risking their viability.
Alarming Job Losses Hit Young Workforce Hard
One of the most shocking revelations in the 2025 report is the loss of almost 6,000 jobs in the sector—a 19% contraction—largely attributed to changes in national insurance contribution thresholds. Davyd describes this as a devastating blow, particularly affecting young people aged 18 to 25, who often work freelance across multiple low-paid roles. "In 10 years' time we will have a shrunk workforce across the whole music industry because of what happened in this one sector in 2025," he warns, underscoring the long-term implications for talent development and industry sustainability.
National Touring Circuit Retreats, Creating Cultural Divides
The report also highlights a concerning trend where the national touring circuit is increasingly concentrated in major cities, leaving 175 towns and cities—home to approximately 25 million people—without regular visits from professional touring artists. Davyd characterises this as a map of cultural "haves and have-nots," isolating local audiences and emerging musicians from the broader music ecosystem. While the Music Venue Trust is working to address these gaps through emergency grants and touring schemes, many venues, such as Where Else? in Margate, still face precarious financial situations, often resorting to crowdfunding to survive.
A Call to Action for 2026 and Beyond
Despite the challenges, Davyd remains cautiously optimistic about the future, believing there is an opportunity to not only stabilise but actively restore the network of grassroots venues. He stresses that achieving this will require concerted action from both government and industry stakeholders. "I think we genuinely could pick up on a huge opportunity to actually start restoring this network—not just stabilising it," he asserts, pointing to 2026 as a critical year for decisive measures. The resilience of these venues is vital for nurturing the next generation of musical talent and preserving the vibrant cultural fabric of communities across the UK.
