More than half of UK grassroots music venues failed to make a profit in 2025

Over half of the UK’s grassroots music venues failed to make a profit in 2025, according to a new report from Music Venue Trust (MVT).

The music charity shared its annual report earlier this week, which came alongside a warning that the grassroots sector “remains financially fragile”.

Figures show that 53% of GMVs in the UK made no profit last year, while the UK government’s changes to business and national insurance rates led to a loss of 6,000 jobs in the sector, with venues struggling to “meet unsustainable tax burdens”.

Despite gloomy statistics, the report did find that last year saw the lowest rate of annual decline in small venues since 2018, showing a positive stabilisation of the sector.

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It found that a total of 801 trading grassroots music venues were recorded in 2025, down from 810 in 2024 – with a total of nine lost. MVT reports that this is in part due to “extensive support” delivered by the Venue Support Team through the Emergency Response Service.

Elsewhere, the report found that the grassroots music sector generated over £76 million of revenue in 2025, though the average profit margin is now just 2.5%.

Last May, The LIVE Trust reported that a ticket levy scheme in the UK supported by musicians including Diana Ross and Pulp had raised more than £500,000 toward grassroots music.

The initiative encourages artists who perform at stadium or arena shows in the UK to donate £1 from every ticket sold to grassroots music funding body The LIVE Trust – a scheme that was backed by 93% of UK music fans in an earlier survey from Music Fans’ Voice.

Read this next: 93% of UK music fans back £1 ticket levy on arena shows to support grassroots venues

“We have reached the limits of what venues can absorb on margins of 2.5%,” says MVT CEO and founder Mark Davyd. “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.”

“That obviously needs to come in the form of a coherent strategy from the government, but they are not the sole solution,” he continues. “The music industry itself is in the last chance saloon with regards to the levy; if voluntary industry action does not deliver by June 2026, the government must legislate.”

Read Music Venue Trust’s full report here.

Gemma Ross is Mixmag's Associate Digital Editor, follow her on X