Nearly 54% of UK Grassroots Venues Made No Profit Last Year

As UK club closures continue to mount, new data from Music Venue Trust (MVT) shows that more than half of the country’s grassroots music venues (GMV; 53.8%) did not make a profit in 2025. 

Across the GMV sector, the average profit margin was “critically low” at just 2.5% – a stark contrast from the £500 million-plus ($671 million) the grassroots music sector generated in total economic value last year. “Unsustainable” tax pressures amplified by the UK government’s changes to business and national insurance rates resulted in a loss of about 6,000 jobs. This impact was felt most sharply among freelance and casual roles, which dropped from 20.7 to 7.6 workers per venue.

The GMV sector currently comprises 801 venues across England, Scotland, Wales, and Northern Ireland, down from 810 in 2024. While MVT’s 2025 Annual Report paints a troubling portrait of continued financial stress and uncertainty among GMVs, there was a silver lining: the 1.2% drop seen from 2024 to 2025 “represents the lowest rate of annual decline since 2018 and reflects the gradual stabilisation of the grassroots circuit following years of contraction.”

MVT’s Emergency Response Service, which provides free legal and expert advice in areas ranging from licensing to planning, among other forms of support, was critical in avoiding additional closures during this period. Its Venue Support Team saw more than 200 cases of venues reporting “urgent need of information, advice, and guidance.” Financial insecurity was the main threat to the venues that sought assistance from the Service.

Findings from the report also confirmed that diversification, both of venue purpose and programming, remains an increasingly popular survival strategy. The number of GMVs that opened as bars or restaurants outside of their live music provision nearly doubled from 34.2% in 2024 to 65.5% in 2025. Events featuring art forms other than music, including comedy, theatre, dance, and film, accounted for 33.5% of the total programming last year.

“We have reached the limits of what venues can absorb on margins of 2.5%,” said 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. 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.”

Rising attendance at music events across the GMV sector reflects ardent support for the struggling sites, particularly as the percentage of free-entry events fell from 35.2% in 2024 to 24.2% in 2025. Audience visits increased by 13% during the same period, with just over 21 million music lovers attending events across the sector.